Agenda item

The Joint Committee had before it a report by John-Paul Cleary (CRD Programme Manager, ACC) which provided an update on the Programme to develop the specific projects under the City Region Deal Heads of Terms (£250m).

The report recommended –

that the Joint Committee note the progress of the Aberdeen City Region Deal Programme.

John-Paul Cleary (CRD Programme Manager, ACC) spoke to the report and advised that all three constituent partners and both governments had agreed to target the approval of the City Region Deal (CRD) Agreement and Implementation Plan by 17 August 2016. Mr Cleary explained that lead officers had met with the UK Government earlier in the week and had been informed that funding would be released in line with key timeframes as set out in the various business cases. He highlighted that the business cases would follow Scottish Enterprise’s Five Case Model and the methodology outlined in the UK Treasury’s Green Book. Mr Cleary explained that the UK Government would transfer its funding contribution to the Scottish Government who would then allocate the funds for all CRD programmes; with the exception of some transport projects, in which funding would be allocated through Transport Scotland. Mr Cleary then provided the Joint Committee with a progress update on the various CRD programmes and projects:

(i)         With regards to the Oil and Gas Technology Centre (OGTC), the Joint Committee was informed that representatives from ONE would be meeting with the Scottish and UK Governments on 17 June 2016 and a business case was being prepared. They were further advised that a Chief Executive would be appointed in the next few weeks and the project had access to £500,000 of funding but would need further investment by September 2016 as it would be delivered ahead of the rest of the CRD programmes;

(ii)        With regards to the Agri-Food and Nutrition Innovation Hub, Jennifer Craw explained that the project team would be in place by the end of June 2016 and an outline business case would be developed by August 2016 but they would need further clarity from both governments on the criteria of the programme. Ms Craw highlighted that the scope of the project had been expanded to be more market orientated in order to generate international revenues. Patrick Machray added that the project had been slightly delayed as it was their aim to develop a project of unique value as there was no value in duplication;

(iii)       With regards to the Bio-Therapeutic Innovation Centre, Jennifer Craw advised that this project would focus on the region’s unique competencies and there was an opportunity to develop an economic base that would be competitive and attractive in a national context. Ms Craw explained that the project’s name had been revised as its remit had been refined and would now concentrate on the development of bio-tech related therapies for conditions such as heart disease, cancer and diabetes. She added that the projects were not linear and they had been assessing their strategic options;

(iv)       With regards to Digital Infrastructure, John Paul Cleary advised that this project would increase the region’s digital connectivity for both industrial estates and major population areas. He explained that a gap analysis was currently in progress but had been held up as commercial sensitivity issues had been identified and these had to be resolved. Simon Haston (Head of IT and Transformation, ACC) explained that he would be happy to provide members with a date for the completion of the gap analysis, as well as dates for when specific projects would be finalised at the Joint Committee’s next meeting. At this point Sir Ian Wood requested that lead officers from the Digital Infrastructure project team meet with representatives of ONE to provide a briefing on the benefits of the planned improvements in the region’s digital infrastructure;

(v)        With regards to the Strategic Transport Appraisal, John-Paul Cleary informed the Joint Committee that no business case would be required in this area as the STAG process would effectively be the business case process. Derek Murray (Director, Nestrans) added that the two governments had re-profiled the transport appraisal and Nestrans were in discussions with Transport Scotland on how the £5million of funding would be allocated. At this point members agreed to enter into discussions with the Scottish Government to try and persuade them that funding for CRD transportation projects should be allocated through the Scottish Government and not through Transport Scotland, to ensure standardisation of funding allocation for all CRD projects and programmes; and

(vi)       With regards to the Harbour Expansion Project, John-Paul Cleary advised that the scope of the project was flexible up to its approval in October 2016 and he explained that they had received a number of additional requests for improvements from the Harbour Board. He stated that the Programme Board were open to these proposals but were mindful that the feasibility of any proposal would be dependent on the development of road infrastructure surrounding the Harbour.  

The Joint Committee resolved:-

(i)        to note the progress of the Aberdeen City Region Deal Programme;

(ii)       to request that an action plan be developed that would chart the timeframes for approval by all the CRD Committees; Boards and Programme Groups ahead of the target date of 17 August 2016 for approval by all partners;

(iii)      to request that completion dates for the Digital Infrastructure gap analysis and other CRD digital programmes be presented to the Joint Committee’s next meeting on 22 July 2016;

(iv)      to request that lead officers from the Digital Infrastructure project team provide a briefing on the benefits of planned improvements in the region’s digital infrastructure to representatives of ONE; and

(v)       to request that lead officers meet with the Scottish Government to discuss the transfer of authority for allocating CRD funding for transportation projects from Transport Scotland to the Scottish Government, to ensure standardisation across all CRD projects and programmes.