7. AGD Programme Update
North Ayrshire Council · 7 September 2023
Back to Ayrshire Economic Partnership Board — 7 September 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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AYRSHIRE ECONOMIC PARTNERSHIP BOARD MEETING – 7 SEPTEMBER 2023 REPORT BY HEAD OF ECONOMIC GROWTH EAST AYRSHIRE COUNCIL SUBJECT: AYRSHIRE GROWTH DEAL - PROGRAMME UPDATE PURPOSE OF REPORT 1. To advise the Economic Partnership Board members of the progress of the Ayrshire Growth Deal and the development of its component projects as at 25 August 2023 (Appendix 1). RECOMMENDATIONS 2. Agree the content of the report and recommend approval to the AEJC to note: (i) The updates provided in the attached report; (ii) The progress across the Ayrshire Growth Deal Programme. (iii) Note actions to address anticipated slippage of business case milestones and risk to financial drawdown; BACKGROUND 3. This report is an update on the progress made on the Ayrshire Growth Deal (AGD). It has been prepared in line with the agreed governance structure and its commitment to monitoring and reporting progress across all parts of the Deal’s programme on regular basis. 4. A summary of the current status of the programme priorities and the development work associated with individual projects is contained within the progress report attached to this covering report. The report covers progress up to 25 August 2023. The previous update was reported to the Ayrshire Economic Partnership Board (AEPB), on 15 May 2023, and included progress up to the 28 April 2023. (Please see Appendix 1). 5. Please note that the reporting period does not fully align with the financial year’s quarters and includes progress made in part Q1 and part Q2. To address this mismatch in timings the PMO is in discussions with the secretariat for the AEPB and Ayrshire Economic Joint Committee (AEJC) in order to improve alignment of the reporting to members. 6. The report considers the progress made on the Deal at both a programme and project level. This includes an update on the Red/Amber/Green (RAG) status in regards to meeting milestone timelines, scope, budget and overall progress. Supporting narrative
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is provided where necessary. (Please see Programme and Project Introductions – Appendix 1). MAIN REPORT 7. The overall status for the programme is still assigned at ‘red’. This is due to continued challenges of meeting the original aspirations of projects within a fixed budget against the continued climate of increasing costs. These challenges are reflected in the attached summary update and the Programme Risk Register (which is considered in detail elsewhere on the agenda). The impact is that there are pressures upon the programme and project objectives being met within the existing budget, which is having consequential affect upon business case development, the ability to project accurate future spend, and the failure to drawdown funds in accordance with the relevant Grant Offer Letter. To address these concerns the following actions are underway. KEY POINTS Programme level 8. The latest financial Bi-annual report (August 2023) is being completed and submitted to the Governments. This report is a Government requirement and provides a spend projection for the programme and individual projects. In comparing the now protected spend for this financial year (2023/24) against the Grant Offer Letter 2023/24, it is noted that a significant drop is expected in potential drawdown for this financial year in regards to capital projects. No change is expected for revenue projects. Please see tables below: Capital Projects Grant Offer Letter 23/24 (£m) Bi-annual return August 23 (£m) Differences (£m) Spaceport 2.855 4.567 +1.712 Commercial Space 17.689 5.696 -11.993 I3 Flexi Space 2.339 0.950 -1.389 CoRE 0.300 0.300 0 TOTAL 23.184 11.513 -11.671 Revenue Projects Grant Offer Letter 23/24 Bi-annual return August 23 Differences Working for Healthy Economy 0.703 0.703 0 Ayrshire Skills Investment Fund 0.850 0.850 0 Community Wealth Building 1.073 1.073 0 TOTAL 2.626 2.626 0 9. As a total the Programme is expected to drawdown £14.139m as oppose to £25.81m, a potential drop of £11.671m. Further details of the current financial position is set out in paragraphs 24-27.
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10. The PMO is working with the SRO’s and project leads in addressing the changes in expected spend profile and to ensure future projections are accurate. This includes consideration of the programme as a whole and its ability to deliver the original aspirations. However it should be noted that the current spend projection for the Ayrshire Skills Investment Fund is unlikely to be reached by the end of March 24. This is due to the delay in the final endorsement of the project by the Government, which was received on 25 August 2023. Further details on key projects including those under review are detailed in paragraphs 12 - 19. 11. In addition the PMO are exploring ways to enhance the effective management of projects within the context of the AGD governance. In response the PMO is drafting a series of Supplementary Advice Notes in relation to the change management process; development and management of Full Business Cases; and the interpretation of the new Subsidy Control requirements. Drafts of the Notes will be consulted upon by the SRO and project leads and in turn will be presented to the AEPB and AEJC. Project level 12. Project leads continue to meeting the challenges of developing and delivering projects. This is partly reflected in the changes in the spend projections for this financial year and the meeting of milestones included in the attached summary sheets (e.g. business case approvals). Below is a summary of the projects that are now ‘red’ in status from the perspective of budget, scope and overall position. Budgetary Issues - ‘Red’ status Scope Issues - ‘Red’ status Overall - ‘Red’ Status Spaceport Roads ASTAC Commercial Space Digital Spaceport Roads Roads Marine Tourism Digital 13. Key projects are now being reviewed in order to de-risk delivery and ensure projects meet their objectives. The attached summary provides details of progress being made, with the highlights focusing on projects in Overall ‘red’ status as follows: 14. ASTAC – a review of the project is underway via a recently established working group. This includes regional partners such Ayrshire College. Initial indications on reviewing the scope of the project will focus on skills/resources and the delivering of training by Innovation. 15. Spaceport – extensive review of the project has been undertaken in order to confirm expected costs. The outcome has been the identification of a funding gap principally to meet land acquisition and additional build costs. Discussions are underway between SAC and Scottish Enterprise to work together to help address the funding gap and
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develop a FBC. An update is provided elsewhere on the agenda. 16. Roads – SAC/ARA are working with Transport Scotland in order to address the scope of the STAG. In addition the phases of the project are being considered in relation to the development of the other Prestwick AGD projects and wider regenerative needs. 17. Digital Programme – further extensive work on the refining of options for the future of the digital programme have been underway. This includes the identification of two options which still seek to provide a digital offer. Further details are provided elsewhere on the agenda. 18. Other highlights include: • Ayrshire Skills Investment Fund – The draft FBC, as approved by the AEJC on 7 August 2023, has now been endorsed by the Government. Now endorsed this brings the total number of projects with approved FBC up to 6 out of a programme of 19 projects. • Commercial Space – Scottish Enterprise (SE) have advised that delays are expected in the start of ground works for the Mangata (Opportunity A) project. This is due to the need to confirm private sector funding to support the development. Due diligence is being followed by SE and that a revised business plan is expected by the end of September. On site works is now expected to start in January 2024. • Marine Tourism – increased costs has had an impact upon the development of this programme of projects, hence its ‘red’ budgetary status. As a result the scope and expected outcomes of the projects are being reviewed in order to confirm deliverability of the programme. • AMIC/Moorfield – following extensive review of both projects and the insurmountable challenge of achieving access from the Bellfield junction, Kilmarnock, the co-location of both projects at Moorfield has provided an opportunity to utilize economies of scale. This is being reflected in the potential to coordinate delivery of both projects. Details of this approach have been initially shared with the Governments, which has activated the AGD Change process. • Community Wealth Building – as previously reported consultants have now been appointed to undertake a mid-term review of the project. Any recommendations identified that are considered substantial will be required to follow the change management process and be reported to the AEPB and AEJC. 19. Projects in delivery are; Community Wealth Building, Working for Healthy Economy, Commercial Space, i3 Flexi Space (Phase 1) and i3 DPMC (Phase 1), with Ayrshire Skills Investment Fund to be in delivery in the coming weeks. COMMUNICATION UPDATE 20. This report does not include an updated detail on Q2 communication and engagement activity for all projects in the programme. This is due Q2 as a period not ending until the end of Sept. A report capturing these activities will be provided at the next AEPB.
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IMPLICATIONS 21. Eight implications have been considered in the preparation of this report. Implications Yes No Paragraph number in report 1. Policy/Strategic Planning No 2.Governance/Legal Yes Para 22 3. Human Resources No 4. Equality and Fairer Scotland Duty Yes Para 23 5. Financial Yes Para 24-27 6. Risk Yes Para 28-29 7. Community Wealth Building No 8. Net Zero No LEGAL IMPLICAITONS 22. The legal implications arising from this report are covered through the Agreement between Ayrshire’s councils and the Governance Document which was revised and approved at the Joint Committee meeting on 8 December 2022. EQUALITY IMPACT ASSESSMENT 23. There is no equalities impact relating to this report. Inclusion is a key driver for the AGD. Project Leads will be required to complete an Equality Impact Assessment for their project and append to the associated business case. Project Leads have received Equality Impact Assessment training organised by the Scottish Government. Project Leads are being encouraged by the PMO to link up as soon as possible with their Equalities Officer within their authority who will be able to assist with this matter. FINANCIAL IMPLICATIONS 24. The financial implications arising from this report are covered through the Financial Plan approved at the Joint Committee meeting on 26 June 2023. The overall cumulative total of Grant claimed for the Deal to date is £10.880m. 25. The eighth claim since Deal signing (in the financial year 23/24 Qtr1) has been made to the Scottish Government for c.£295,392 which is made up of expenditure associated with the Community Wealth Building, Working for a Healthy Economy and i3 flexible Space. All claims made to date have been processed by Government and payment received. The financial position statement for April 2023 within the progress report reflects the claims, as well as Grant claimed to date (Appendix 1). 26. At the time of preparing this paper the forecast drawdown reported to Scottish
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Government for P12 2023/24 amounts to £14.140 million, an anticipated decrease of £11.671 million for the year compared to a budget of £25.810 million. Projects are, however, demonstrating commitment and incurring costs developing projects, with evidence of £9.080 million having been spent by councils to date ahead of project business cases being approved. Once approval of the relevant business cases has been received from government and the Joint Committee, the relevant costs will be claimed back from government. 27. Please note all capital and revenue project costs are being monitored and discussed with regional partners, UK and Scottish governments. RISK IMPLICATIONS 28. Strategic and operational risk registers continue to be developed, reviewed and updated for the AGD Programme. This is being undertaken by the PMO with the support of EAC audit. The Programme Risk Register has been updated in accordance with the commitment to be reviewed every quarter as approved by the AEJC on 26 June 2023. Details of the latest update is considered elsewhere on the agenda. 29. In addition the risk registers for each project which are updated on a monthly basis and reflected in the attached summary update (Please see Appendix 1). APPENDICES Appendix 1: Ayrshire Growth Deal Update of Programme and Projects Background Papers: Heads of Terms, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 8 March 2019 Deal Document, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 19 November 2020 Members requiring further information should contact: Graham Saunders, Ayrshire Growth Deal –Strategic Manager graham.saunders@east-ayrshire.gov.uk Implementation Officer: Graham Saunders, Ayrshire Growth Deal – Strategic Manager graham.saunders@east-ayrshire.gov.uk
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Appendix 1 Ayrshire Growth Deal Update of Programme and Projects
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AYRSHIRE GROWTH DEAL Monthly Report - 25 August 2023
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Programme Updates - Guidance (Milestones) RAG Status Programme Milestone Timeline Status Overall Action Required Red Delay to delivery timeline of key milestone having a negative impact on programme One or more milestones are RED Immediate action required by senior management and relevant Boards as appropriate to address issues Amber Milestone slipping against planned date but not expected to impact delivery of the programme No milestones are highlighted RED but at least one is AMBER Management action is in place by PMO and/or senior management to address issues Green On track to deliver milestone on time or early All milestones are GREEN No management action required Complete Milestone delivered n /a No management action required Status against milestone timeline set out in Implementation Plan Milestones – current financial year and next financial year Programme Updates - Guidance (Risks) This table illustrates the conversion of AGD RAG Status to Scottish Government RAG Status Source GREEN AMBER RED N/A Ayrshire Growth Deal RAG Guidance Note with an AGD risk register score of between 0-3 with an AGD risk register score of between 4-9 with an AGD risk register score of between 10- 14 with an AGD risk register score of between 15-25 N/A Source GREEN AMBER/GREEN AMBER/RED RED N/A Scottish Government Guidance Successful delivery appears highly likely with regard to time, cost and quality and there are no major outstanding issues that at this stage appear to significantly threaten progress Successful delivery appears probable however attention will be needed in certain areas to ensure risks do not develop into major issues that will threaten delivery Successful delivery appears possible, but issues already exist that require serious attention. These appear resolvable at this stage, but further action is required Successful delivery is in serious doubt with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed Not listed on previous Quarter
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Programme Dashboard – 25 August 2023 Financial Summary Programme Milestones Programme Top Risks Overall Status Last Period Overall Status This Period Total AGD Grant £'000 AGD Grant Drawdown to Date £'000 %age of total AGD Grant 2023/24 AGD Grant Allocation £'000 2023/24 Grant Drawdown £'000 251,500 10,880 4.33% 25,810 295 Programme & Upcoming Programme Milestones Target Date RAG Grant Offer Letter for 2023/24 received and agreed 30-Jun-23 Complete 2023 Annual Review of Deal documentation approved (Implementation Plan, Financial Plan, Governance Document, Communications Protocol) 30-Jun-23 Complete Review overarching Monitoring & Evaluation Framework 30-Jul-23 Amber Update Benefits Realisation Plan and progress on performance (every March and September) 30-Sep-23 Green Update Benefits Realisation Plan and progress on performance (every March and September) 31-Mar-24 Green Review and update Change Management Process - draft and approve Supplementary Advice Note 1 30-Jul-23 Amber Review and update Business Case process with a focus on Full business Case requirements - draft and approve Supplementary Advice Note 2 31-Aug-23 Amber Review and update Subsidy Control requirements for the AGD - draft and approve Supplementary Advice Note 3 31-Aug-23 Amber Review and update AGD web site programme and project details 30-Sep-23 Green Key project interdependencies articulated 31-Mar-24 Green Annual Conversation (2022/23) 31-Jan-24 Green Annual Performance Report approved and published (2022/23) 28-Feb-24 Green Submission of statement of compliance with conditions of grant (2023/24) 30-Apr-24 Green Risk Likelihod Impact AGD Status SG Status Mitigating Action - UPDATE TO ALIGN WITH IMPLEMENTATION PLAN Failure to achieve AGD programme objectives within agreed budget 4 4 16 16 The Regional Economic Joint Committee, Regional Economic Partnership, AGD Steering Group in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery. PMO developing monitoring and evaluation processes to ensure overall objectives are captured and any project failing to achieve and contribute to these is flagged and issues addressed as quickly as possible. This includes responding to increasing costs of general capital works within the context of the original funding made available by the Government in 2019. Leading to potential to review risks where evidence suggests insufficient funding to undertake and complete projects in line with expected outcomes. PMO undertake ongoing environmental analysis to ensure programme objectives are relevant/valid as well as maximised where relevant and new benefits identified when materialising. Internal governance include regular reviews undertaken by PMO with input from SROs, Project Leads and Chief Executives to ensure AGD programme objective are met. Failure to provide accurate projections for programme spend 4 4 16 16 Issues will be escalated to CEOs, Regional Economic Partnership and Regional Economic Joint Committee as appropriate. The Implementation Plan and Financial Plan have been updated to take account of the compressed funding. Project Leads have sought to address delays in gaining approved FBCs, by undertaking reviews of projects to fit existing budgets, which are shared with Finance Directors, the government and wider partners. Revised project mitigation measures seek to demonstrate how inflationary pressures will be managed. Business Case process monitored to ensure streamlined pathway to approval enabling projects to achieve FBC as quickly as possible to reach project delivery and clarity on expected spend. PMO will regularly review, challenge and agree financial profiling/phasing with Project Leads, SROs and Finance Directors and ensure drawdown projections align with delivery timescales. OBCs/FBCs include an optimism bias factor as per Treasury Green Book and AGD Governance document. Inflationary factor addressed through project reviews e.g. re-scoping, phasing and reviewing benefits Failure to drawdown full AGD funding 4 4 PMO will regularly review, challenge and agree financial profiling/phasing with Project Leads, SROs and Finance Directors and ensure drawdown projections align with delivery timescales. This includes PMO working with Project Leads, SRO’s and S95’s to ensure projects can be realised and help with change processes where necessary; and undertaking effective communication with Governments to ensure projects can be realised. Achieve business case approval in line with latest Deal Implementation Plan, and AGD Governance document and, Finance guidance. Annual review of Financial Plan and Implementation Plan. The Scottish Government’s financial reporting requirements will be implemented. Pivot projects proactively where possible in line with need and opportunity. Internal procedures, financial controls and processes in place to mitigate this risk Delays in development and approval of business cases 4 4 Undertake focused engagement with SG and UKG in order to help ensure SBC, OBC and/or FBC comply with the Treasury Green Book and gain approval pin line with AGD governance. PMO working closely with Project Leads and Policy Leads within UK and Scottish Governments to support business case development and approval to an agreed timeline. This includes exploring a streamlined change process (pre-FBC) particularly where budget constraints are sole driver of change. Project Leads have received Green Book business case training. Project Leads’ toolkit in place. Other partners assisting in developing business cases where capacity is low Lack of resources in PMO 4 4 A permanent PMO structure is in place but not all posts are currently filled, with recruitment now underway to start completing the team. The PMO is being supported by colleagues in each of the Councils in a number of work streams. PMO undertaking a review of capacity and skill sets in response to the changing requirements of the Office Potential impact of international events upon cost of living crisis and economic prosperity of Ayrshire 4 4 Regular engagement with Project Leads to highlight any risks well in advance, so that the PMO can raise with government, Regional Economic Partnership and Regional Economic Joint Committee as appropriate. Regular review vi monthly reports of outputs and timelines for business cases at every stage of development in the light of external events. Continued monitoring of external environment and government relations. Regional Economic Strategy approved in early 2023 and be supported by an emerging action plan. Regional Economic Partnership will provide voice for Ayrshire to press the case for government intervention investment. Incentives and other forms of assistance to complement the AGD and stimulate greater economic activity. Current change management process to be reviewed with both governments and partners. Regional Skills Investment Plan developed, with a focus on its implementation via Ayrshire Skills Group. Robust data analysis shared amongst key partners and stakeholders to reach common understanding of local economic conditions, leading to early identification of real threats and opportunities - achieving consensus with partners and stakeholders on strategic objectives for inclusive and sustainable economic growth, with effective action planning and monitoring. PMO co-ordinated evidence across Deals and submitted collective case via the Implementation Plan update to both governments setting out impact of increased costs or reduced the scope/outputs and time delivery if costs not met. PMO developing a baseline approach to FBC which will be shared with both governments and partners
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AGD PROJECTS - COMPLETE Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 20/21 £'000 FINANCIAL POSITION STATEMENT FINANCE YEAR 2023/24 QUARTER 2 HALO 9,000 7,000 7,000 10,524 MONTH Jul-23 9,000 7,000 7,000 10,524 Government Grant 2023/24 £'000 AGD PROJECTS - EXPECTED FBC/APPROVED FBC IN 2023/24 ~ GRANT OFFER LETTER Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 22/23 £'000 Total Expenditure 23/24 YTD £'000 Grant Allocation TBC Grant Claimed Q1 Grant Claimed Q2 Grant Claimed Q3 Grant Claimed Q4 Total Grant Claimed YTD Remainig Grant Available to Claim in year Spaceport Infrastructure 23,000 23,000 0 2,856 266 2,855 0 0 0 0 0 2,855 Commercial Space - Prestwick - Industrial & Hangar 29,000 22,000 825 1,160 326 17,690 0 0 0 0 0 17,690 i3 Flexible Business Space 15,000 11,000 307 545 65 2,339 65 0 0 0 65 2,274 Community Renewable Energy Project (CoRE) 24,500 17,000 0 976 0 300 0 0 0 0 0 300 Working for a Healthy Economy 5,000 5,000 1,118 1,118 176 703 117 0 0 0 117 586 Ayrshire Skills Investment Fund 3,500 3,500 0 0 0 850 0 0 0 0 0 850 Community Wealth Building Fund 3,000 3,000 1,335 1,335 153 1,073 113 0 0 0 113 960 103,000 84,500 3,584 7,989 986 25,810 295.392 0 0 0 295 25,515 AGD PROJECTS - FUTURE Total Project Budget £'000 Government Grant Funding £'000 Government Grant Claimed to date £'000 Total Expenditure 17/18 to 22/23 £'000 Total Expenditure 23/24 YTD £'000 Aerospace & Space Technology Application Centre (ASTAC) 11,000 5,000 0 728 0 Prestwick Infrastructure - Roads 17,000 12,000 0 472 13 Ayrshire Engineering Park (Moorfield) 16,000 12,000 0 826 41 Ayrshire Manufacturing Investment Corridor (AMIC) 23,500 23,500 0 390 26 i3 Digital Processing Manufacturing Centre 6,000 5,000 0 245 9 Hunterston Strategic Development Area 18,000 18,000 0 192 2 International Marine Science & Environmental Centre (IMSE) 10,500 6,500 0 134 4 The Great Harbour, Irvine Harbourside & Ardeer 14,000 9,000 0 460 40 Marine Tourism 9,500 9,500 0 412 14 Digital Projects (name TBC) 14,000 14,000 0 76 0 139,500 114,500 0 3,934 150 AGD TOTAL 251,500 206,000 10,584 22,447 1,136
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Project Updates - Guidance Project Stages Stage Definition Project Stages Stage Definition Define - SBC Establishing the strategic context for the spending proposal Implement Business case has been approved by Joint Committee, and is being implemented Define - OBC Establishing the preferred option Deliver Project is in place and monitoring and evaluation is in framework to assess if it is achieving its objectives Define - FBC OBC approved by government, securing delivery plans and finalising detailed costing Legacy Project has resulted in mainstreaming or improvements to business as usual (impact) that is generated beyond the funded period RAG Status Programme Milestone Timeline Status Project Scope Status Project Budget Status Overall Action Required Red Delay to delivery timeline of key milestone having a negative impact on project completion date Significant change in scope expected, with no change request in process There are projected or actual adverse variances with recovery plan to be established One or more milestone, scope or budget indicators are RED Immediate action required by senior management and relevant Boards as appropriate to address issues Amber Key milestone missed or projected to miss against planned date but not expected to negatively impact the original project completion date Likely to be minor changes in scope within agreed business case OR scope is still developing OR significant change request not yet approved There are projected or actual adverse variances, however a recovery plan is in place No milestone, scope or budget indicators are RED but at least one is AMBER Management action is in place by PMO and/or senior management to address issues Green On track to deliver milestone on time or early Scope has been set and on plan with agreed business case AND/OR formal change request approved There are no actual or projected variances All milestone, scope and budget indicators are GREEN No management action required Complete Milestone delivered Project complete and all items in scope delivered Financial transactions relating to project have been settled If all the milestone, cost, scope and benefits realisation indicators are complete No management action required Future N/A N/A Business Case more than one year away from submission n /a No management action required Milestones – current financial year and next financial year PMO = Programme Management Office SBC = Strategic Business Case OBC = Outline Business Case FBC = Full Business Case Project Updates - Guidance (Risks) This table illustrates the conversion of AGD RAG Status to Scottish Government RAG Status Source GREEN AMBER RED N/A Ayrshire Growth Deal RAG Guidance Note with an AGD risk register score of between 0-3 with an AGD risk register score of between 4-9 with an AGD risk register score of between 10-14 with an AGD risk register score of between 15-25 N/A GREEN AMBER/GREEN AMBER/RED RED N/A Scottish Government Guidance Successful delivery appears highly likely with regard to time, cost and quality and there are no major outstanding issues that at this stage appear to significantly threaten progress Successful delivery appears probable however attention will be needed in certain areas to ensure risks do not develop into major issues that will threaten delivery Successful delivery appears possible, but issues already exist that require serious attention. These appear resolvable at this stage, but further action is required Successful delivery is in serious doubt with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed Not listed in previous Quarter
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Programme Summary – 25 August 2023 Project Name OBC Date OBC RAG FBC Date FBC RAG Project Scope Status Project Budget Status Project Overall Status Aerospace and Space Technology Application Centre 01/12/2023 Green 02/08/2024 Green Green Amber Red Spaceport Infrastructure 30/10/2021 Complete 30/09/2023 Red Green Red Red Prestwick Commercial Space 30/08/2021 Complete 08/09/2022 Complete Green Red Green Prestwick Infrastructure Roads 28/02/2024 Red 31/10/2024 Red Red Red Red Ayrshire Engineering Park (Moorfield) 30/09/2023 Green 10/06/2024 Green Amber Amber Amber Ayrshire Manufacturing Investment Corridor 30/10/2023 Green 10/06/2024 Green Green Amber Amber i3 Flexible Business Space 30/05/2021 Complete 30/09/2022 Complete Green Amber Amber i3 Digital Processing Manufacturing Centre 31/05/2022 Complete 30/06/2022 Complete Green Amber Amber HALO 31/05/2022 Complete 30/06/2022 Complete Complete Complete Complete Community Renewable Energy 31/05/2022 Complete 20/12/2023 Green Amber Amber Amber Hunterston 30/06/2024 Green 28/02/2026 Green Amber Green Amber International Marine Science & Environmental Centre 30/06/2024 Green 28/02/2026 Green Amber Amber Amber Marine Tourism 31/12/2023 Green 30/03/2026 Green Amber Red Amber Great Harbour 25/06/2021 Complete 31/03/2024 Green Amber Amber Green Digital Infrastructure & Subsea Cable (TBC) tbc under rescope tbc under rescope Red Green Red Ayrshire Skills Investment Fund 30/04/2023 Green 30/06/2023 Amber Amber Green Amber Working for Healthy Economy 19/02/2021 Complete 22/02/2021 Complete Green Green Amber Community Wealth Building 12/02/2021 Complete 22/02/2021 Complete Green Green Amber
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Project Updates – Space and Aerospace Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Aerospace & Space Technology Application Centre George Hunter Louise Reid Spaceport Infrastructure Derek Yuille Commercial Space Derek Yuille Prestwick Infrastructure Roads (Phase 1) Kevin Braidwood
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Aerospace and Space Technology Application Centre August Project Overall Status 2023 Red Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: George Hunter Attended PAOG meeting with public bodies and private industry representatives, sub-groups established, with group leads identified/confirmed. First meeting held with consultant, SAC project lead, & AC (Ayrshire College), established the roles and responsibilities of each and set out the initial framework including the OBC requirement. Working group established and follow-up timetable created. Visit arranged to review existing properties at Prestwick Airport week commencing 21st August. Next steps include discussions with PAOG sub-groups in particular the skills/resource & innovation groups and scoping of the project with particular emphasis on delivering training by Innovation. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 01/12/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC 02/08/2024 Green AGD/O/2 - Construction jobs created tbc tbc Phases Target date AGD/O/9 - Business Space Created tbc tbc Phases Target date AGD/O/13 - Visitors tbc tbc Phases Target date AGD/O/14 - SME's Supported tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Submitted to Government 01/12/2023 Green Completion of Phase 2 30/10/2029 Green Develop local partnership delivery model 01/12/2023 Green Final financial drawdown 31/03/2030 Green Complete final project design and procurement documentation 02/08/2024 Green FBC approved by Joint Committee 02/08/2024 Green Hand-over (Phase 1) to operational organisation 23/10/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Sustainable funding model not achieved 5 4 20 • Development of local delivery partnership • Market survey required to determine medium term support • Initial projects success will demonstrate viability of ASTAC proposal • Development of a membership/engagement set • Limit the scale of ASTAC to match projected workload • Model allows for facilities re-use as technology and business needs mature ASTAC not effective quickly to support urgent industrial needs 4 5 20 • Core capabilities already available • Skills development and training already established • Phased approach to support priority actions first • Utilise experience and resource from project partners Failure to attract external investors into this facility 5 4 20 Project team focused on ensuring business model and design can react to changing industry and technology demands • Stakeholder management • Marketing and promotional campaigns to be put in place Commercial viability and impact of economic downturn 4 4 16 Project team focused on maintaining first mover advantage through close engagement with all stakeholders; focus on TRLS with university and catapult networks, ensure business model and design can react to changing industry and technology demands Proposal not supported by local businesses 5 3 15 • Industrial engagement to be carried out to identify what specifics ASTAC will deliver • Collaboration with Scottish Enterprise to ensure industry support • Start-up industrial partners confirmed before project full approval
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Spaceport Infrastructure August Project Overall Status 2023 Red Project Update Project Scope Status Green Project Budget Status Red Monthly update - provide narrative Project Lead: Derek Yuille There is a significant funding gap and additional funds are required if the project is to proceed. Discussions have been held with Scottish Enterprise who have confirmed the Spaceport’s importance as part of a broader economic development programme around Prestwick and Scotland's space and aerospace proposition and capabilities. Scottish Enterprise have proposed that they work with SAC and the regional partners to: develop the Spaceport Full Business Case; plug the funding gap for the land acquisition and; explore opportunities to accommodate additional build costs; and that Scottish Enterprise are appointed as the delivery organisation for the Spaceport project by the AEJC. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/10/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 10 tbc FBC 30/09/2023 Red AGD/O/2 - Construciton Jobs Created 135 tbc Phases Target date AGD/O/9 - Business Space Created 3200 sqm tbc Phases Target date Target tbc Phases Target date Target tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status RIBA Stage 3 30/04/2023 Red Airspace change agreed 31/03/2024 Green Heads of Terms agreed to purchase land 20/06/2023 Red LSO/LSP/Range Licence requirements for first launch 30/11/2024 Green FBC approved by Joint Committee 30/09/2023 Red Spaceport infrastructure complete 30/11/2024 Amber Construction Start 01/11/2023 Red First Commercial Launch 31/01/2025 Amber Safety Case 31/03/2024 Green Full project completed/final drawdown 31/03/2026 Amber Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Delay in receiving a decision on additional funding support from SG/UKG 4 2 8 8 Letter sent from SAC CE to SG/UK Gov with updated project costs highlighting funding gap for project and seeking additional funding support if project is to go ahead 31/10/2023 Agreement not reached to acquire land necessary for development 4 2 8 8 New land agent appointed t otake forward negotiations with land owners to secure preferred site. GPA approached to identify alternative site within airport should negotiations on prefereed site fail. 30/11/2023 Project does not secure planning consent 4 2 8 8 Early and continuous dialogue with Planning Authority to ensure any matters that will be considered during application process are addressed fully prior to submission. Full compliance with application process including meaningful stakeholder consultations where required. 31/12/2023 Financial viability of LSO and LSP 4 2 8 8 Due diligence will require to be undertaken on LSP (By GPA) and LSO (by SAC) to establish their financial suitability to enter into any lease agreements prior to agreeing terms 31/12/2023 Failure or delay in obtaining required licences for spaceport operation 3 2 6 6 Launch Site Operator (GPA) and Launch Service Provider (Astraius) are responsible for obtaining any licences associated with the operation of spaceport and introducing mitigation measures to reduce the risk of failure. 31/12/2024
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Prestwick Commercial Space August Project Overall Status 2023 Green Project Update Project Scope Status Green Project Budget Status Red Monthly update - provide narrative Project Lead: Derek Yuille Site preparatory works/archaeology are now complete on Opp A (Mangata). Due to issues with funding and due diligence, main construction has been delayed and now programmed to start Jan 2024 and complete May 2026. Planning consent granted June 2023. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/08/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 570 tbc FBC 08/09/2022 Complete AGD/O/2 - Construciton Jobs Created 150 tbc AGD/O/9 - Business Space Created 13900 sqm tbc AGD/O/16 - Leverage (incl. LA, HE/FE, Private Sector and any other levereage) £55,000,000 tbc Target tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Planning permission 31/05/2023 Complete Handover 31/12/2025 RED Final financial drawdown 31/03/2030 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Approval • Delays in planning process due to capacity constraints • Objections to proposed route 2 2 4 4 Prestwick Campus Masterplan incorporated in development of LDP2 via main issues report and subsequent consultation with residents and other parties • On-going community consultation 31/12/2023 Delays in provision of utilities 2 2 4 4 Site energy strategy to be put in place and early engagement in place across utilities companies 30/06/2024 Delays to design and build procurement processes • Challenges to the process • Availability of contractors 2 2 4 4 External expert advisers have been procured to support the project team and will adhere to the procurement policies of South Ayrshire Council Timescales have been set to ensure that there is a sufficient pool of suppliers to undertake the activities and are interested in providing a competitive tender 31/12/2023 Delays in site acquisition/agreement with Scottish Enterprise 2 2 4 4 Project team preparing proposal for Scottish Enterprise and project team will monitor progress with negotiation and take remedial action should timelines slip 31/12/2023 Economic downturn 2 2 4 4 Early engagement with market indicates that this investment is an important part of recovery and engagement with market will be maintained 31/12/2024
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Prestwick Infrastructure Roads August Project Overall Status 2023 Red Project Update Project Scope Status Red Project Budget Status Red Monthly update - provide narrative Project Lead: Kevin Braidwood Transport Planning Objectives and Case for Change submitted to Transport Scotland (TS) with provisional review meeting with TS set for w/c 14th September, Business stakeholder meetings arranged and ARA will attend the September Monkton Community Council meeting. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 28/02/2024 Red AGD/O/2 - Construciton Jobs Created 40 tbc FBC 31/10/2024 Red AGD/O/7 - new roadway created 2 km tbc Phases Target date AGD/O/7 - roadway upgraded 1 km tbc Phases Target date AGD/O/7 - new roundabouts 1 tbc Phases Target date AGD/O/11 - upgraded roundabouts 3 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Roads Enabling STAG Appraisal - Release of funds from Transport Scotland 31/08/2023 Red Procurement of contractor and commencement of works – Monkton 30/06/2024 Red Planning and regulatory consent achieved – Spaceport (St Quivox) 30/09/2023 Red Completion of works – Spaceport (St Quivox) 31/12/2024 Red Land assembly, site preparation, contract documentation – Spaceport (St Quivox) 31/12/2023 Red Completion of works – Monkton 31/2/2025 Red Planning and regulatory consent achieved – Monkton 31/12/2023 Red Planning and regulatory consent achieved - Gannet Link tbc Red Roads Enabling OBC - TS & Council Approval 28/02/2024 Red Land assembly, site preparation, contract documentation - Gannet Link tbc Red Land assembly, site preparation, contract documentation – Monkton 31/03/2024 Red Procurement of contractor and commencement of works – Gannet Link tbc Red Procurement of contractor and commencement of works – Spaceport (St Quivox) 30/04/2024 Red Completion of works - Gannet Link tbc Red Roads Enabling FBC - TS & Council Approval 31/05/2024 Red Final financial drawdown tbc Red Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Route design - fails to meet demands from current occupiers in relation to future productivity. Fails to support the development of available land. Doesn't support the volumes of future traffic. Community resistance. 4 4 16 Utilise external consultancy service for a technical study to design and detail the road scheme Route has been designed within the context of a Prestwick Campus masterplan which considers location of plots and utility services On-going discussions with the current operators at Prestwick in respect of future plans • On-going community consultation Early landowner identification and discussion supported by legal review where necessary 30/09/2024 Delays in release of enabling infrastructure funding from Scottish Government via Transport Scotland 4 4 16 Commissioning of Enabling Roads STAG and OBC • Effective scoping and ongoing liaison with Transport Scotland STAG 28/10/2023 OBC 31/07/2024 Interdependencies with Spaceport project Risk that the construction of new access to serve spaceport does not meet agreements with funders and Heads of Terms requirements 4 2 8 8 Continual review of interdependencies with other AGD projects, particularly Spaceport (including site location and exclusion zone requirements). • Engagement with stakeholders and funders Consider in the design of the new road the serving of the spaceport and future development opportunities. 30/09/2024 Cost overruns 4 2 8 8 Project delivery will be led by a qualified project manager following established process for road construction Costs will be monitored against progress and reported to the programme board Any additional costs will be absorbed where possible by project redesign and/or re- prioritisation 31/12/2027 Planning Approval - Dealys in planning due to capacity constraints, Objections to proposed route, Planning programme and interrelation between overall Spaceport development and enabling roads intrastructure 3 2 6 6 Programme recognised by Planning Department as a major project and given priority Prestwick Campus Masterplan incorporated in development of LDP2 via main issues report and subsequent consultation with residents and other parties • On-going community consultation • Planning Strategy to be developed to ensure planning applications are interconnected 31/12/2024
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Project Updates – Economic Infrastructure Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Ayrshire Engineering Park (Moorfield) Fiona Paterson David McDowall Ayrshire Manufacturing Investment Corridor (AMIC) Gillian Morton i3 Flexible Business Space Marnie Ritchie Neale McIlvanney i3 Digital Processing Manufacturing Centre (DPMC) Marnie Ritchie HALO Gary Deans David McDowall
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Ayrshire Engineering Park (Moorfield) August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Fiona Paterson 1. Tender reponses have been received for appoitnment of Civil/Strucural Engineer and M&E Consultant for combined AEP & AMIC site, scoring and then appointment of tenders expected by September 2023. 2. Project team are currently pulling together additional information & programme businesses case for submission in the coming weeks. 3. Two Public Consultation meetings will be held in September, date to be confirmed. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/09/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 203 tbc FBC 10/06/2024 Green AGD/O/2 - Construciton Jobs Created 88 tbc Phases Target date AGD/O/9 - Business Space Created 7250 sqm tbc Phases Target date AGD/O/10 - Reduced vacant & derelict land 18.3 ha tbc Phases Target date AGD/OT/7 - Additional Investment (incl Foreign Direct Investment) tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Approved by Government 30/09/2023 Green FBC approved by Joint Committee 10/06/2024 Green Tender for Building Services & Civil and Structural Engineers Services 02/05/2023 Green Commencement of infrastructure works 24/06/2024 Green Design period inl community consultation & Environmen Impact Analysis commences 10/07/2023 Green Construction of terraced units and 500sqm unit 21/04/2025 Green Planning permission secured 30/03/2024 Green Initial business premises operational 19/01/2026 Green FBC endorsed by Government 20/05/2024 Green First tenants move in 01/02/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure to Contribute to AGD programme objectives 3 3 9 9 Project will be managed by EAC in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the OBC projections. AGD Steering Group and other governance arrangements are in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery and project lead will be required to provide regular project updates 31/3/2027 Failure to provide accurate projections for project spend 3 3 9 9 • Ensure sufficient optimism bias built into costing of the project • Inflationary factor included in cost estimations Project will be managed by project team in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the BC projections • Issues to be escalated PMO in first instance to agree remedial actions as appropriate • Challenge panel led by PMO exists to review & scrutinise spend profiles 31/3/2027 Delays in approval of business case 3 3 9 9 Project lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline 30/12/2025 Failure to deliver community benefits from the project 3 2 6 6 Procurement colleagues will support the tender process to ensure that community benefits are a key aspect of the ITT and are in line with agreed AGD procurement principles 31/03/2027 Negative Publicity 3 2 6 6 A communications protocol has been agreed with both governments and will support shared communications designed to build stakeholder confidence • All project specific publicity will be dealt with in a coordinated fashion, sensitivity and empathy to business climates at the time of publications will be carefully monitored 31/3/2027
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Ayrshire Manufacturing Investment Corridor August Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Gillian Morton 1. Tender reponses have been received for appoitnment of Civil/Strucural Engineer and M&E Consultant for combined AEP & AMIC site, scoring and then appointment of tenders expected by September 2023. 2. Project team are currently pulling together additional information & programme businesses case for submission in the coming weeks. 3. Two Public Consultation meetings will be held in September, date to be confirmed. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/10/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 189 tbc FBC 10/06/2024 Green AGD/O/2 - Construciton Jobs Created 130 tbc Phases Target date AGD/O/9 - Business Space Created 5814 sqm tbc Phases Target date tbc tbc Phases Target date tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC Approved by Government 30/10/2023 Green Phase 1 - works commence (Food & Drink Centre) 07/04/2025 Green Planning application secured 28/02/2024 Green Phase 2 - works commence (speculative units) 02/02/2026 Green FBC endorsed by Government 20/05/2024 Green Phase 1 - Initial premises operational 01/02/2026 Green FBC approved by Joint Committee 10/06/2024 Green Phase 2 - Initial premises operational 09/11/2026 Green Award & Commence Infrastructure - Procurement Contract 24/06/2024 Green First tenant secured 01/02/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Construction costs in particular costs of materials significantly increase 4 4 16 The project team will work closely with colleagues in F+PM and the design consultants to develop a cost effective but efficient building design. An affordability cap has been set as part of the appointment of the design team to ensure we work within the parameters of the budget. 24/06/2024 Failure to Contribute to AGD programme objectives 3 3 9 9 Project will be managed by EAC in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the OBC projections. AGD Steering Group and other governance arrangements are in place to monitor progress and to address any weaknesses or issues that could impact on overall delivery and project lead will be required to provide regular project updates 31/03/2027 Failure to provide accurate projections for project spend 3 3 9 9 • Ensure sufficient optimism bias built into costing of the project • Inflationary factor included in cost estimations Project will be managed by project team in line with PRINCE 2 principles – any issues will be monitored, and remedial action agreed to ensure delivery remains in line with the BC projections • Issues to be escalated PMO in first instance to agree remedial actions as appropriate • Challenge panel led by PMO exists to review & scrutinise spend profiles 31/03/2027 Delay or failure delivering project due to concerns around transport implications 3 3 9 9 • Undertake all Transport Assessments and reports as required by LDP • Continue to liaise with Transport Scotland Continue to progress all site options proposed in BC to ensure best site possible is chosen and the project can be delivered 30/05/2024 Delays in approval of business case 3 3 9 9 Project lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline 30/03/2025
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i3 Flexible Business Space August Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Marnie Ritchie Phase 1 - Contractor Muir Group appointed. Design revised to accommodate inaccurately mapped high pressure water mains and related stand off zone. Work can now commence on marketing, with NAC receiving ongoing enquiries. Building warrant submitted and estimated start on site is mid October 2023. Phase 2 & 3 - internal approval to commence work on Phase 2 and accelerate, with support from internal team of architects and surveyors. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/05/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 133 tbc FBC 30/09/2022 Complete AGD/O/2 - Construction jobs created 83 tbc Phase 2 FBC 25/02/2025 Green AGD/O/9 - Business Space Created 6000 sqm tbc Phase 3 FBC 28/02/2027 Green AGD/O/10 - Reduced vacant and derelict land 20 ha tbc AGD/O/14 - Start-ups 5 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover 31/10/2024 Green Completion of Phase 2 30/10/2029 Green Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/10/2025 Green Final financial drawdown 31/03/2030 Green Phase 2 FBC approved by Joint Committee 25/02/2025 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2025 Green Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover tbc Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Cost overruns 4 5 20 • Develop and validate Project Brief and Specification • Benchmark costs • Ensure early infrastructure cost tested/ informed SI • Provide Green Book compliant optimism bias allowances • Provide for contingency • Undertake value engineering • Pursue additional funding sources Project delays and economic impact of Covid-19 and recovery 4 4 16 Early analysis has identified that the need for this project is unlikely to be diminished and in fact may be even greater Project team will continue to focus on economic analysis and the development of recovery plans will incorporate this as a key project for implementation as part of that wider plan Work with contractors to devise solutions designed to minimise impact of social distancing – such as different work patterns Failure to deliver anticipated outputs and outcomes 3 5 15 • Ensure BC addresses sensitivity of outcomes • Clear Evaluation & Monitoring Framework Demand – no interest from occupiers 3 5 15 • Flexible design to maximise potential interest from occupiers • Marketing and promotion of floorspace Continue to establish strategic relationship with national sector (including links with NMIS) Utilities cause delays e.g. surface water drainage connections, sub-station requirements. 3 4 12 12 Utility companies to be approached and applications to be submitted at an early stage. Despite this mitigation, issues have arisen on utilities for Phase 1, hence change to status to reflect this. Contractor working with Scottish Water and current issue resolved. However changed to amber /red status for ongoing project and future phases.
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i3 Digital Processing Manufacturing Centre August Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Amber Monthly update - provide narrative Project Lead: Marnie Ritchie Phase 1 - University of Strathclyde are procuring the equipment, fit out, recruiting for resources and securing membership of companies which is taking longer that anticipated. Stakeholder visit took place in May 2023 and video promoting centre is being prepared by NMIS. Phase 2 - Centre: Analysis with partners to be completed on Phase 1 to provide scoping parameters for phase 2. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 95 tbc FBC 30/06/2022 Complete AGD/O/2 - Construction Jobs Created 84 tbc Phase 2 OBC 31/12/2024 Green AGD/O/9 - Business Space Created 1749 sqm tbc Phase 2 FBC 31/12/2025 Green AGD/O/10 - Reduced vacant & derelict land 20 Ha tbc AGD/O/16 - Leverage: (incl. LA, HE/FE, Private Sector and any other leverage) £19,810,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/07/2027 Green Reporting; outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 30/04/2028 Green OBC Phase 2 approved by Government 31/12/2024 Green FBC Phase 2 approved by Joint Committee 31/12/2025 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/01/2026 Green Construction/Project completed and Handover (RIBA Stage 5-6; Construction & Handover 31/07/2027 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Capital costs are in excess of the budget. 4 4 16 • Value engineering of works specifications • Proactive review of funding opportunities to make the shortfall Failure to deliver anticipated outputs and outcomes 4 3 12 12 • Ensure BC addresses sensitivity of outcomes • Clear Evaluation & Monitoring Framework Phase 0 and Phase 1 will establish the concept, build operational capacity and industry interest. • Conditions of grant will include expected outputs to measure the project’s success. • Regular monitoring of centre’s performance through Supervisory Board Delays to procurement processes 3 4 12 12 • Seek early agreement on appropriate procurement routes • Include anticipated tender packages within the Council’s Procurement Wave Plan • Notify potential bidders of procurement opportunities at an early stage Ongoing Partnership commitment 4 3 12 12 • Memorandum of Understanding signed August 2021 • Collaboration Agreement signed March 2022 • Development and co-ordination of appropriate governance procedures • Commitment to lease for Phase 1 location Failure to deliver community benefits 4 3 12 12 Incorporate appropriate community benefits into contract terms and resource appropriately.
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HALO June Project Overall Status 2023 Complete Project Update Project Scope Status Complete Project Budget Status Complete Monthly update - provide narrative Project Lead: Gary Deans What a month it has been, we were delighted to welcome our first Cohort from Ayrshire Chamber of Commerce to the HALO #RockMe Trading floor. It was great to meet the four businesses and introduce them to everything HALO. It has been another busy month with events which climaxed in hosting Barclays, 'Road To A Sustainable Ayrshire' event. It was great to welcome our clients and partners as well as some new faces to HALO to find out about how they can get their businesses to Net Zero by 2045.We were delighted to welcome our first cohort of clients from the Ayrshire Chamber of Commerce partnership. We also welcomed some more new clients to our HALO #RockMe Trading Floor, Aspiration Accounts, Resolute FA and Clear Vision Mortgages. It's brilliant to continue to see the HALO #RockMe Trading Floor grow and you'll see more from all of their team as the months go on! Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 232 182 FBC 30/06/2022 Complete AGD/O/2 - Construciton Jobs Created 256 265 Phases Target date AGD/O/3 - safeguarded jobs 300 375 Phases Target date AGD/O/15 - Private sector investment £15,199,000 tbc Phases Target date AGD/OT/7 - Public and private sector investment - Phase 2 £46,000,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Failure in financial management and reporting 2 2 4 4 The Board of HALO Kilmarnock Ltd receives monthly reports on all financial aspects of the project and address any significant variances from the approved full business case Robust financial systems and controls are in place and the Board of HALO Kilmarnock Ltd retains oversight of these. Copy of monthly report forwarded to PMO for BRP purposes. Reputational 2 2 4 4 Specialist advisers have been appointed to deal with media enquiries and to communicate on any issue which is deemed to potentially impact on the reputation of the project and the Board of HALO Kilmarnock Ltd
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Project Updates – Energy, Circular Economy & Environment Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Community Renewable Energy (CoRE) Diarmid Turnbull David McDowall Hunterston Strategic Development Area Neale McIlvanney Neale McIlvanney International Marine Science & Environment Centre (IMSE) Neale McIlvanney
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Community Renewable Energy August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Diarmid Turnbull 1. A revised draft of the Demonstrator Report has been received which includes amendments as requested. Officers have reviewed the report and are satisfied with the amendments. The Cabinet report has been prepared and will be presented to Cabinet on 20th September 2023. The Cabinet report will provide an full update on: the Strathclyde University Demonstrator Project Report, the current project status, progress of partnership board development and request for additional resource to support project development. 3. The project team are in the process of forming the Partnership Board, this is expected to be completed by the end of August 2023, with the first Board meeting to be held early-mid September. 4. The outcomes of the Demonstrator Report will be presented to the Board, with early pathfinder recommendations. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/05/2022 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 108 tbc FBC Demonstrator Projects 20/12/2023 Green AGD/O/2 - Construciton Jobs Created 88 tbc FBC Centreof of Excellence 30/05/2024 Green AGD/O/9 - Development Space Unlocked 3008 sqm tbc Phases Target date tbc tbc Phases Target date tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Formation of Management Board 30/05/2023 Amber FBC for CoRE Innovation Centre 30/05/2024 Green Engagement with Education and Skills Partners 30/08/2023 Green Commencement of Programme of Demonstrator Projects 01/02/2024 Green Programme Business Case 15/07/2023 Green tbc Review of CoRE Innovation Building 20/12/2023 Green tbc FBC for Demonstrator projects 20/12/2023 Green tbc Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Construction costs, in particular cost of materials, significantly increases due to the pandemic. 4 5 20 The project team will work closely with colleagues in F+PM and the design consultants to develop a cost effective but efficient building design. An affordability cap has been set as part of the appointment of the Design Team to ensure we work within the parameters of the budget. 31/03/2030 Health Pandemic/UK threat to business security- the risk that a global health pandemic could shut down the country causing significant danger to life and the economic stability of the country. 3 5 15 The Centre of Excellence will be a national centre for businesses within the energy and technology industry in times of crisis. The Centre will provide support and direction for these businesses as well as providing lab space to allow for any technology testing (such as creating a new type of ventilator) to meet any demand. 31/03/2030 Failure to attract investors and new businesses to locate within the Centre of Excellence 3 5 15 EAC will work collaboratively with specialist partners, including Scottish Enterprise and Energy Technology Partnership, from an early stage to identify and work with potential investors The research carried out within the facility will be tailored towards particular technologies for which there is market interest in. Wider Ayrshire Economic Growth Strategy will be put in place to ensure wider growth ambitions for Ayrshire are agreed and be articulated to stakeholders and investors. At a local level, the Council will work with existing businesses and start-ups to explore how they can benefit from the project, a potential arm of which could be to locate into the research facility/incubator space 31/03/2028 Delays in approval of business case (due to COVID-19, feedback from both Governments may be delayed as their efforts will be focussed on critical services). Potential delays to project delivery may impact on milestone achievements resulting in potential reduction in realisation of benefits of AGD. 3 5 15 Project Lead will work closely with PMO and policy leads within UKG and SG to support business case development and approval to an agreed timeline. Ensure business case statistics, feedback and information is up-to-date while waiting for further feedback. 31/03/2027 Design Stages of the Centre of Excellence and the site take longer than expected with the landowner (also due to COVID-19, there could be further delay as staff working arrangements change). 3 4 12 12 Clear deadlines and targets have been clearly set out with the landowner and design team Ensure there is continuous collaborative working between the Council, design team and landowner. • Ensure there is consistent communication between Project Team and landowner. 31/03/2025
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Hunterston August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Green Monthly update - provide narrative Project Lead: Neale McIlvanney Extensive work has been progressed to underpin the strategic case for both IMSE and Hunterston both aligning with an identified nationally significant blue economy and energy opportunity. This has included development of informal academic partnership, research, analysis and industry engagement and formation of partnership related to project development and delivery for Hunterston. MoU in place with Peel Ports Ltd & SE - partners are continuing to develop actions to unlock potential AGD investment, particularly identifying land ownership and delivery model which will enable OBC development. Partner engagement is also ongoing to understand impact of nuclear decommissioning on wider strategic development area. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/06/2024 Green AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC 28/02/2026 Green AGD/O/2 - construction jobs 1204 tbc Phases Target date AGD/O/3 - safeguarded jobs tbc tbc Phases Target date AGD/O/7 - New or upgraded roads/junctions/cycle pathways tbc tbc Phases Target date AGD/O/16 - Leverage Funding (incl LA, HE/FE, Private Sector and any other leverage £200,000,000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 30/06/2024 Amber Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 30/06/2029 Green Completion of detailed design - RIBA Stage 3 31/03/2025 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/03/2030 Green Completion of technical design - RIBA Stage 4 31/12/2025 Green FBC approved by EJC 28/02/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Unforeseen project complexities that require additional funding 4 4 16 • Provide Green Book compliant optimism bias allowances • Provide for contingency • Project monitoring will track potential impacts and create ability to respond Ground conditions and historical legacy of site infrastructure create major burdens for development 4 4 16 Project team is working with Peel Port Group to understand the development issues/infrastructure/utilities impacting onsite re-development Concept not supported by Partners and evidence of investment/market support not forthcoming 4 3 12 12 Project team/Peel Port Group/SE developing and promoting an investment model to secure major inward investment plus academic partners and industry • Dialogue being progressed around role, responsibilities and funding commitments MOU signed between NAC/SE/Peel and wider strategic proposition around blue economy and Hunterston supported by partners Concept and Operational Management revised /amended 3 4 12 12 Project team/Peel Port Group developing a partnership/investment model to secure inward investment/academic partners and industry Other Development/Investment/ Proposals impact on capacity/deliverability 4 3 12 12 • Project team/Peel Port Group seeking to collaborate with major partners to develop a clear investment strategy/masterplan and investment led project proposition for AGD • Peel Ports have gained planning approval of a site Framework to allow planning applications to be considered Project fails to secure necessary consents 4 3 12 12 • Project team is in early dialogue with key regulatory partners and stakeholders
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International Marine Science & Environmental Centre August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Neale McIlvanney Extensive work has been progressed to underpin the strategic case for both IMSE and Hunterston both aligning with an identified nationally significant blue economy and energy opportunity. This has included development of academic partnership, research, analysis and industry engagement and formation of partnership related to project development and delivery. Collaboration Agreement being worked up between NAC, Field Studies Council & University of Stirling to agree partnership arrangement to progress with interventions required to fulfil this project and the supporting business case development plan. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/06/2024 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 75 tbc FBC 28/02/2026 Green AGD/O/2 - Construciton Jobs Created 58 tbc Phases Target date AGD/O/9 - Development Space Unlocked 1400 sqm tbc Phases Target date AGD/O/10 - Reduced and vacant derelict land 0.6 Ha tbc Phases Target date AGD/O/14 - Start-Ups 4 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 30/06/2024 Amber Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 30/06/2029 Green Completion of detailed design - RIBA Stage 3 31/03/2025 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/03/1930 Green Completion of technical design - RIBA Stage 4 31/12/2025 Green FBC approved by EJC 28/02/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/03/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Unforeseen project complexities that require additional funding 4 4 16 • Provide for contingency • Provide Green Book compliant optimism bias allowances • Project monitoring will track potential impacts and create ability to respond Programme delay created within wider strategic delivery plan for Ardrossan 4 4 16 • Project team undertaking masterplanning process to identify all project requirements and spatial needs Concept not supported by Partners 4 3 12 12 • Project team developing a partnership model with leading academic partners and industry • Dialogue being progressed around role, responsibilities and funding commitments • An MOU has been signed to develop the project definition with University of Stirling Strategic need and consolidation in sector advises Co-Location with wider projects 4 3 12 12 • Project team developing a partnership model with leading academic partners and industry Concept and Operational Management revised /amended 3 4 12 12 • Project team developing a partnership model with leading academic partners and industry Project cannot secure necessary consents 4 3 12 12 • Project team in early dialogue with key regulatory partners and stakeholders to address any concerns
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Project Updates – Tourism Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Marine Tourism Kathleen Dow Neale McIlvanney Great Harbour Kasia Smith
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Marine Tourism August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Red Monthly update - provide narrative Project Lead: Kathleen Dow Analysis is ongoing to enable a response to the feedback received on the Marine Tourism Programme Business Case and to identify next steps within current cost environment. A draft OBC has been produced for the Cumbrae Project. Investigations with CMAL (ferry provider) at Arran are ongoing. This relates to the Project's impact upon the ferry service at the Brodick Pier site. There are no updates on the Ardrossan Project at this time (Aug). Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 31/12/2023 Green AGD/O/1 - New Jobs Created (Direct and Indirect) 30 tbc FBC 30/03/2026 Green AGD/O/2 - Construciton Jobs Created 81 tbc Cumbrae 30/03/2026 Green AGD/O/9 - Development Space Unlocked 6 Ha tbc Arran 28/02/2026 Green AGD/O/10 - Reduced and vacant derelict land 0.1 Ha tbc Ardrossan 28/02/2027 Green AGD/O/13 - increase in visitors(day and night) 100000 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 31/12/2023 Green Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 31/01/2027 Green Completion of detailed design - RIBA Stage 3 31/12/2024 Green Operating project (RIBA Stage 7) and reporting 30/07/2027 Green Completion of technical design - RIBA Stage 4 and issue of tender 30/08/2025 Green FBC approved by Joint Committee 30/03/2026 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 31/07/2026 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Changes to capital costs or inappropriately quantified cost provisions or increasing costs that reduce scope of marina projects 5 4 20 • Detailed technical studies in place to inform design • Design team includes a cost consultancy and detailed assessment of contingency and optimism bias is in place • Regularly review viability of each project. Consider what is possible within budget. Upon PBC approval concluded at OBC - finalised in detailed at FBC Development agreement and market economy investor principle for Ardrossan fails to secure support 5 4 20 • Project team taking legal advice in terms of state aid and agreement will based on commercial lease terms required for Ardrossan Upon OBC approval concluded at FBC Site/ground conditions are inadequate to provide cost certainty 5 3 15 • Full SI/GI and bathy surveys will be undertaken at an early stage in project development Upon OBC approval concluded at FBC Agreement on technical approach to quays/pontoons and land connections cannot be agreed with stakeholders 5 2 10 10 • Development of partnership/operator plan. Marketing with partners NPL/NMMS Upon OBC approval concluded at FBC Agreements including Development and Operating Agreements between commercial partners and community interest company cannot be secured 5 2 10 10 • North Ayrshire Council seeking to advance formal Development Agreement between NAC/NPL and agree a joint masterplan approach Upon OBC approval concluded at FBC
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Great Harbour August Project Overall Status 2023 Green Project Update Project Scope Status Amber Project Budget Status Amber Monthly update - provide narrative Project Lead: Kasia Smith GREAT HARBOUR MASTERPLAN : To be reported to Planning Committee Oct 25, subject to ELT feedback and Members Briefing – during Sept. Consultation Report documenting public feedback complete and will be made publicly available in due course. Coastal Hub (Beach Park area) - Consultants appointed to progress the next phases of design . Recent focus on site investigations, location of utilities and events requirements, which may influence layout. Existing Beach Pavillion - Temporary roof repairs on-going. Market Feasibility Study in progress to establish viability of a re-development model with a community hub / restaurant. Maritime Mile Public Realm: The preparation to appoint the consultant for the next developemnt phases are progressing. Early work funded by Sustrans on possible active travel options for Maritime Mile as part of wider public realm is on-going. Harbour Master's Office - Further notes of interest received from the private F&D operators and also from a social enterprise. Maritime Heritage Hub - Updated land based development option agreed with Scottish Maritime Museum. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 25/06/2021 Complete AGD/O/1 - New Jobs Created (Direct and Indirect) 145 tbc FBC 31/03/2024 Green AGD/O/2 - Construciton Jobs Created 99 tbc Phase 1 FBC 31/03/2024 Green AGD/O/9 - Development Space Unlocked 9800 sqm tbc Phase 2 FBC 31/10/2024 Green AGD/O/10 - Reduced and vacant derelict land 6Ha tbc Phase 3FBC 31/03/2025 Green AGD/O/16 - Leverage Funding (incl LA, HE/FE, Private Sector and any other leverage £4,000,000.00 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status FBC approved by Joint Committee 31/03/2024 Green Statutory Consents 30/06/2024 Green Completion of detailed design - RIBA Stage 3 31/12/2024 Green Completion of technical design - RIBA Stage 4 30/05/2024 Green Construction/Project Start (RIBA Stage 5: Manufacturing & Construction) 15/05/2024 Green Completion of Construction Tender 31/08/2024 Green Construction/Project completed and Handover (RIBA Stage 5-6: Construction & Handover) 31/10/2025 Green Internal sigh-off of FBC (NAC Cabinet) 30/09/2024 Green Reporting: outputs/outcomes/CWB incl AGD Evaluation/Monitoring (RIBA Stage 7: Use) 31/10/2026 Green FBC update to Joint Committee Phase 2 31/10/2024 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Increase in capital costs associated with changing scope or inappropriately quantified cost provisions 5 3 15 • Cost estimates based on current market • Detailed technical studies to inform design and a fully detailed/itemised cost plan • Project management established to monitor costs • Optimism bias built into costings • Future design team to include cost consultancy • Additional internal and external funding bias Economic downturn as a result of Covid-19 3 3 9 9 • Robust project management in place to analyse impact on this project and wider sector and focus will be placed on this project as an important element of the recovery agenda in Ayrshire • Project team will work with contractors to understand the impact of social distancing on the labour force but expected to be minimal given this is land based • Continue economic analysis and development of recovery plans will be implemented • Robust project scoping should continue to ensure the facility meets needs Project outcomes, including inclusive growth and reducing inequalities, fail to be delivered 4 2 8 8 • AGD PMO is currently working with project leads to develop a consistent approach to ensure inclusive growth, equalities and community wealth building outcomes are embedded in each AGD business case. This approach will ensure explicit commitment to how the project will achieve inclusive growth and reduce inequality Technical approach to quays/pontoons and land connections cannot be agreed with key stakeholders 4 2 8 8 • Development of Partnership/Operator Plan and detailed GANTT Programme ensuring programme allows time for engagement and approvals • PPiP route minimises risks and ensures full engagement with statutory bodies and community • NAC in discussion with Harbour Authority • Development Briefs drafted for Great Harbour Consensus across partners, stakeholders, community bodies or regulatory/ consenting authorities not secured 5 1 5 5 • North Ayrshire Council have completed a formal Partnership Agreement between NAC/NPL and agree a joint masterplan approach • Develop a Development Agreement to frame commercial/operational detail around investment • Engagement and integration of Local Outcome Improvement Plan/Community Planning needs to address wider vision and address issue of housing and investment at Big Idea
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Project Updates – Digital Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Digital Infrastructure & Sub Sea Cable (TBC) Simon Yeardley Louise Reid
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Digital Infrastructure & Subsea Cable (TBC) August Project Overall Status 2023 Red Project Update Project Scope Status Red Project Budget Status Green Monthly update - provide narrative Project Lead: Simon Yeardley Subsea Cable and Infill projects re-scoping activity reaching conclusion - Completion of regional thematic survey has provided an overview of digital connectivity needs of key AGD industries and SME businesses to allow completion of scope option 5a. Review undertaken by partner authorities to identify digital needs of capital projects and projects at risk due to budget and cost constraints and support scope completion for option 5b. Scope documents 5a and 5b have been drafted with input from Lead Authorities; AGD PMO and stakeholders and will be presented to both the PB and AJEC for evaluation in September and October respectively. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC tbc under rescope AGD/O/1 - New Jobs Created (Direct and Indirect) tbc tbc FBC tbc under rescope AGD/O/2 - Construciton Jobs Created tbc tbc Phases Target date AGD/OT/1 - Job levels (new and maintained) tbc tbc Phases Target date AGD/OT/3 - Digital Usage patterns tbc tbc Phases Target date AGD/OT/7 - Additional investment (incl Foreign Direct Investment) tbc tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Report on Re-scope exercise to Partnership Board 27/04/2023 Complete Joint Committee approve re-scope of project 22/05/2023 Complete change management process applied 30/11/2023 Green Project Completion 30/09/2026 Amber Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Cost overruns 5 5 25 • Rescoping exercise will consider options that can be delivered within budget • Robust contract management in place • Appropriate procurement procedures followed and optimism bias built into business case 30/10/2023 Failure to reach consensus on project re-scope option 5 2 10 10 • Stakeholder engagement • Approvals sought via established AGD governance 30/10/2023 Resource availability 3 2 6 6 • Effective deployment of resource to support delivery of the project 30/09/2026
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Project Updates – Regional Skills & Inclusion Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Ayrshire Skills Investment Fund Laura Neill Neale McIlvanney Working for Healthy Economy
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Ayrshire Skills Investment Fund August Project Overall Status 2023 Amber Project Update Project Scope Status Amber Project Budget Status Green Monthly update - provide narrative Project Lead: Laura Neill The Ayrshire Skills Investment Fund OBC has been approved by the Scottish Government. The FBC has been submitted to be endorsed by SG. The FBC was approved by the Ayrshire Economic Joint Committee in August 2023. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 30/04/2023 Green No of people benefiting from in work skills development 500 tbc FBC 30/06/2023 Amber No of people benefiting from pre-employment upskills 500 tbc People benefiting from accredited training 300 tbc No of businesses benefiting from employees with improved skills levels 300 tbc No of participants progressing to living wage opportunities 200 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status OBC approved by Government 30/04/2023 Green 1st annual review 30/06/2024 Green FBC endorsed by Government 15/05/2023 Red complete mid-programme evaluation 31/03/2025 Green FBC approved by Joint Committee 30/06/2023 Green End of programme/final drawdown 31/03/2027 Green Development of guidance for fund applicants 30/06/2023 Amber quarterly application deadlines Green 1st call for proposals 01/07/2023 Amber Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Project delays due to Covid-19 5 5 25 • Early analysis identifies that the need for this project may be greater as a result of Covid-19 • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure the proposal meets needs Programme does not secure sufficient partner buy in to ensure an effective set of interventions are designed and funded 1 1 1 • Early establishment of Regional Skills Board with strategic oversight • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Failure to deliver anticipated impacts across the region in terms of Inclusive Growth 1 1 1 • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress • The partnership will conduct a mid-programme evaluation to check the direction of travel is still correct Disadvantaged residents do not see tangible benefits from projects 1 1 1 • Applicants to the fund will be required to detail how delivery against inclusion targets will be assured • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Inadequate project management results in failure to delivery agreed outcomes 1 1 1 • The Regional Skills Board will provide expert advice on what should be supported through the fund • Adopt programme and project management best practice • These arrangements will be reviewed on an annual basis to ensure they remain fit for purpose • The Steering Group will conduct a mid-programme evaluation and adjust project activity as appropriate
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Working for Healthy Economy August Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Green Monthly update - provide narrative Project Lead: Laura Neill We continue to monitor progress to ensure effective delivery across Ayrshire. Working for a Healthy Economy continues to be delivered across Ayrshire to help individuals manage and improve their health to progress to or sustain employment. In July 2023 the following individuals were supported: • 42 individuals were supported in July 2023 • Of the individuals completing the services to date there has been a 26.8% improvement in overall health and wellbeing • On measuring anxiety, a 35.9% improvement in anxiety levels has been achieved • Depression levels experienced have improved by 45.3% We continue to monitor progress to ensure effective delivery across Ayrshire. A range of events and ongoing promotional activities has been undertaken to achieve the figures reported above. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 19/02/2021 Complete No of people accessing assessment & report 960 tbc FBC 22/02/2021 Complete No of people accessing full management support via telephone 1600 936 No of people accessing full case management support delivered face to face 3838 282 No of people returning to work 1157 77 Unemployed residents supported 4629 tbc Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Evaluation commences 30/06/2022 Green End of programme/final drawdown 31/03/2027 Green Year 3 targets achieved 31/03/2024 Green Year 4 targets achieved 31/03/2025 Green Year 5 targets achieved 31/03/2026 Green Year 6 targets achieved 31/03/2027 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Implementation: Over demand or lack of demand 5 5 25 • Proposed targets are based on delivery experience across Scotland and the experience of delivering a case management service in North Ayrshire recently • The proposal as it stands is designed to remove barriers to accessing this service. In the event of over demand, referral criteria can be set to reduce demand • Project Board has discussed geographical disparity between geographies and agreed mitigation action. Agreed to review again in October. Project delay and macro-economic impact of Covid-19 and recovery 5 5 25 • Early analysis identifies that the need for the project is unlikely to be diminished – in fact may be greater • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure proposal meets needs Unforeseen complexities that require additional funding 1 1 1 • Provide for contingency • Provide Green Book compliant optimism bias allowances • Similar project has been delivered previously • Project monitoring will track potential impacts and create ability to respond National programmes are introduced which result in duplication 1 1 1 • Closely monitor national developments and build in flexibility to contracting arrangements to allow us to change course at short notice if national provision is introduced that duplicates provision. Failure to deliver anticipated outputs and outcomes. Failing to achieve more inclusive growth and/or reduce poverty by increasing the income of people in deprived areas or protected characteristic groups. 1 1 1 • Closely monitor national developments and have built in flexibility to contracting arrangements to allow us to change course at short notice to respond to programme impact • Covid-19 impacts on specific groups will be assessed. Early indications are that young people, females, those with health issues or disabilities will be disproportionately impacted by recession, therefore more targeted Implementation: End of project ‘cliff edge’ 1 1 1 • Would hope to influence the national policy around occupational health services, as a legacy of the programme Appointed contractor could be impacted negatively by Covid-19 1 1 1 • As part of procurement process, robust checks have been made on financial standing of delivery organisations
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Project Updates – Community Wealth Building Programme 25 August 2023 Project Name Project Lead Senior Responsible Officer Community Wealth Building Emma McMullen Neale McIlvanney
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Community Wealth Building August Project Overall Status 2023 Amber Project Update Project Scope Status Green Project Budget Status Green Monthly update - provide narrative Project Lead: Emma McMullen The programme is progressing well having now supported over 800 enterprises in the Ayrshire region. In addition to daily delivery of key programme outputs, focus is on hosting the next pan-Ayrshire CWB event to be hosted in South Ayrshire on the 27th of September as well as a Meet the Buyer event hosted in East Ayrshire during the Ayrshire Chamber business week. Looking forward, the programme is exploring options beyond March 2024 to ideally enable continued delivery of outputs and a streamlined approach to CWB through enterprise support in Ayrshire. Project Targets Business Cases Target date Status Benefits Realisation (top 5 deliverables) Target Actual OBC 12/02/2021 Complete CWB Officers & Action Plans in place - creation of CWB Locality Baselines 15 FBC 22/02/2021 Complete Total enterprises engaged 920 847 Employers undertaking Fair Work Action Plans 90 tbc Enterprises receiving financial assistance 265 265 New enterprises supported 96 107 Progress Update (top priority milestones as per current Implementation Plan) Milestone Due date Milestone status Milestone Due date Milestone status Fair work inspiration week (inl RLW & Disability Awareness) 30/11/2023 Green Ayrshire CWB Enterprise Awards & Programme Achievements celebration 30/04/2024 Green Fair work job fair 28/02/2023 Green Monthly Programme Steering Group Meetings 31/03/2024 Green 500 Ayrshire enterprises supported by the CWB programme 31/03/2023 Green Reporting to PMO, Ayrshire REP & EJC members 31/03/2024 Green Programme case study showcase - SG visits 31/05/2023 Green Annual report 31/03/2024 Green 1000 Ayrshire enterprises supported by the CWB & FWA programme 31/03/2024 Green Project end date/final review/final report/final drawdown 31/03/2024 Green Project Risks (top 5 risks and their status will be included in the monthly report) Target Closure Date (dd/mm/yyyy) Risk Impact Likelihood Score AGD Status SG Status Mitigation Action Project delays due to Covid-19 4 4 16 • Early analysis identifies that the need for this project may be greater as a result of Covid-19 • Continued economic analysis and development of recovery plans should be implemented and robust project scoping should continue to ensure the proposal meets needs Programme does not secure sufficient partner buy in to ensure an effective set of interventions are designed and funded 1 1 1 • Early establishment of Regional Skills Board with strategic oversight • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Failure to deliver anticipated impacts across the region in terms of Inclusive Growth 1 1 1 • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress • The partnership will conduct a mid-programme evaluation to check the direction of travel is still correct Disadvantaged residents do not see tangible benefits from projects 1 1 1 • Applicants to the fund will be required to detail how delivery against inclusion targets will be assured • Quarterly progress reports and annual review will inform decision making processes • The Skills Fund will issue calls for proposals meaning priorities can be adapted to ensure strategic fit and satisfactory progress Inadequate project management results in failure to delivery agreed outcomes 1 1 1 • The Regional Skills Board will provide expert advice on what should be supported through the fund • Adopt programme and project management best practice • These arrangements will be reviewed on an annual basis to ensure they remain fit for purpose • The Steering Group will conduct a mid-programme evaluation and adjust project activity as appropriate