To submit a report by the Chief Executive.

Submitted – a report by the Chief Executive in relation to the above.

The Leader of the Council said that the Quarter 1 performance report provides an overview of progress on the Growth Deal programmes and projects.  However, she noted that whilst it is not evident within the report, considerable work has been undertaken in the background with regards to governance procedures and arrangements to ensure the success of the Growth Bid.  This quarter saw the first Outline Business Case considered and approved by the North Wales Economic Ambition Board and the assurance process for the project has since been approved by Welsh Government.  The Morlais Tidal Energy Project run by Anglesey social enterprise Menter Môn will now move to the next phase and submit a Full Business Case for consideration once the consenting process has been completed. 

The Chief Executive said that processes are put in place by both the UK Government and Welsh Government are stringent to assure that the projects within the Growth Bid are scrutinised as significant financial resources have been afforded by both Governments.  She was pleased that the first project to be approved was a project on the Island - the Morlais Tidal Energy Project.

The Deputy Chief Executive reiterated the comments of the Chief Executive as to the Morlais Tidal Energy Project.  He further said that two further Outline Business Cases – the Glynllifon Rural Economy Hub leb by Grwp Llandrillo Menai and the Digital Signal Processing Centre led by Bangor University have started the approval process.  Both these projects have completed their independent Gateway Reviews and will be reported formally within the Quarter 2 progress report to this Committee.  The majority of the programmes are currently reporting as Amber following revising the business case development timetables resulting in a delay compared to the timetable outlined in the Portfolio Business Case.  This is primarily due to the processes taking longer than originally estimated due to complexity as regards to planning permission, financial consideration, governance and procurement process.  He further said that the North Wales Economic Ambition Board has appointed a new strategic communications partner – Ateb Cymru – to support communications and marketing activities whilst Hatch Regeneris has been appointed to provide general business case consultancy to the Portfolio Management Office.  Wavehill has also been commissioned to support the development of an economic case for the Smart Local Energy Project and Real Wireless to deliver a scoping study to support the Connected Corridors project within the Digital Programme. The Deputy Chief Executive further said that the priority is to see as many of the projects within the Growth Bid implemented and capital works in place as soon as possible.

The Portfolio Holder for Major Projects and Economic Development said that a substantial amount of work is required to move forward the Growth Bid and he was pleased that the Morlais Tidal Energy Project has now moved forward to the next stage.  He further said that both UK and Welsh Governments, private businesses as well as the Ambition Board are involved in moving forward the projects within the Growth Bid. 

The Committee considered the report and made the following main points:-

·           Reference was made that the Economic Ambition Board has appointed four consultants to support the work of the Board.  Questions were raised as to whether the Board will appoint further consultants in due course.  The Deputy Chief Executive responded that expertise in different aspects of the projects needs to be appointed to ensure that projects add value and support the regional team;

·           Reference was made that the timetable for the development of some of the Business Cases has slipped up to six months in some cases.  It was noted that the Portfolio Management Office has put arrangements in place to ensure that Business Cases are of a required standard.  Questions were raised as to why this process was not put in place at the beginning of the Growth Bid process.  The Chief Executive responded that lessons have been learnt during the first project that has been progressed to the next stage.  The Gateway Reviews have taken longer than expected with regard to the Outline Business Case but the new timetables produced are more realistic to be able to realise the projects within the Growth Bid.  The Deputy Chief Executive said that the governance processes set by both UK and Welsh Governance are stringent processes to comply with the release of major funding towards the projects within the Growth Bid;

·           Reference was made that it is noted within the report that some projects are currently reporting as Red due to either risks to the project scope or significant delays to project timetables.  Concerns were raised that funding towards the projects within the Growth Bid may not materialise and specifically reference was made to the Holyhead Gateway (Land and Property Programme) that the scope of the project is under review due to concerns regarding the cost of the project and the commercial case.  The Deputy Chief Executive responded that the Holyhead Gateway is an important project within the Growth Bid and both Governments are in consultation with Stena with regard to the re-building works required to the Breakwater at Holyhead and the increase in capacity within the Holyhead Port to increase the economic growth of the Port.  He noted that arrangements can be made to update the elected members for the Holyhead area as regards to this project in due course;

·           Questions were raised whether both UK and Welsh Government were collaborating with the regards to the Growth Bid as the costs of affordability has increased as construction costs have increased significantly recently. The Leader of the Council responded that due to the substantial financial resources afforded by both Governments towards the Growth Bid they are part of the Bid and Officers from both Government are present during meetings with Officers of the Regional Board;

·           Reference was made to the Full Fibre at Key Sites and Connected Campuses (Digital Programme) which notes that the business case development timetable has been pushed back to allow programme capacity to focus on initial two Portfolio Management Office projects.  Questions were raised whether there is capacity within the Regional Team to manage all the projects.  The Deputy Chief Executive responded that the Growth Bid is a project of 10 years and the recruitment process within the Regional Teams is increasing with experienced Officers appointed to move the projects within the Growth Bid. 

It was RESOLVED:-

·           To note the progress made during Quarter 1 – 2021/22;

·           That a letter be sent to the North Wales Economic Ambition Board expressing concerns as regards to the financial resilience to allow the projects within the Growth Bid to materialise.

ACTION  : As noted above.