Chamber and committees

Infrastructure Investment: Major Capital Projects Progress Update

Letter from Andrew Watson, Budget and Public Spending Directorate, Scottish Government: 23 June 2021

Dear Mr Leonard

This suite of material provides the Public Audit Committee with the latest report on the progress of Major Capital Projects for the six months ending March 2021.  This update comprises information relating to the reporting of the 2015 Infrastructure Investment Plan (IIP) including the IIP Project Pipeline update (Annex A), the IIP Major Capital Projects Progress update (Annex B) and the IIP Programme Pipeline update (Annex C). 

This will be the last Major Capital Projects Progress Update relating to the 2015 IIP as a new Infrastructure Investment Plan for Scotland was published on 4 February 2021.  The new Plan includes a pipeline of major projects and national programmes which will be taken forward over the next five years and this pipeline of activity will be reported on from the autumn onwards.       

An Overview Report has also been included within this update which forms part of our recent annual IIP 2015: Progress Report for 2020-21 publication.  The Overview Report aims to respond to the interest that Committee members have previously shown in infrastructure investment.  It is attached at pages 3 to 14 with the full progress report publication available by way of the following link:  IIP 2015: Progress Report for 2020-21

Impact of COVID-19 on delivery

The Committee should note that around a third of the ongoing projects captured within the progress update (Annex A & B) were subject to further delay or cost increases due to the impact of the COVID-19 pandemic.  Of the 22 projects within the update, 3 reported planned ‘operational’ date delays due to the impact of the virus, 3 reported cost increases due to the impact and 1 other reported cost increases which were partially due to the impact.  

These variances reflect the way in which COVID-19 has impacted on investments at different stages of development as well as supply chains and the associated ongoing restrictions and working practices which have been adapted to allow delivery to continue.  The response to COVID-19 is still ongoing and the cost and time estimates provided in this update are of course based on best available information.  Projects will however continue to be subject to the impact of the ongoing COVID-19 situation and may be subject to further revision.

Presentational changes

The Committee should note as per previous report, that in order to consolidate reporting and reduce the overlap of information within this update and that of the IIP Major Capital Projects Progress update (Annex B), the IIP Project Pipeline (Annex A) now only includes those projects where an Outline Business Case (or equivalent) has not yet been approved.  As we come to the end of our reporting on the 2015 IIP, there are three projects that remain to be taken forward within the pipeline. 

Wider infrastructure developments

As already stated, our new Infrastructure Investment Plan for Scotland 2021-22 to 2025-26 was published on 4 February 2021.  The new Plan covers the next five financial years from April 2021 and includes details of around £26 billion of major projects and national programmes with more to be confirmed in future years.  The new Plan and the latest five-year Capital Spending Review were published together in order to provide a strong and coherent framework for directing, analysing, shaping, and prioritising future commitments.  Our new Plan delivers our National Infrastructure Mission.

As per previous reports, the latest information relating to the diverse pipeline of projects within the Scotland-wide hub programme can be found on the Scottish Futures Trust’s website by way of the following link: https://www.scottishfuturestrust.org.uk/page/hub

I thank the Committee for their interest and hope that members finds this update helpful.  I am copying the update to the Clerk of the Economy and Fair Work Committee, the Clerk of the Finance and Public Administration Committee and the Auditor General for Scotland for their information.

Yours sincerely

Andrew Watson

Budget and Public Spending Directorate

Scottish Government

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