Agenda, decisions and minutes

To receive any apologies for absence.

Apologies were received from Councillor Llinos Medi Huws (Isle of Anglesey County Council), Dafydd Evans (Grŵp Llandrillo-Menai), Professor Edmund Burke (Bangor University) and Wendy Boddington (Welsh Government).

To receive any declarations of personal interest.

Chris Drew (Bangor University) declared a personal interest in item 7 - Egni Change Request and Project Replacement Process Update, due to the fact that the report involved the University's request to change the Egni Project.

Paul Bevan (Grŵp Llandrillo-Menai) and Maria Hinfelaar (Glyndŵr University) declared a personal interest in item 11- Portfolio Delivery Fund 2023-24 - Change Requests, as the report referred to allocating specific resources to Grŵp Llandrillo-Menai and Glyndŵr University projects, and due to the direct funding nature of the item.

The representatives were of the opinion that they were prejudicial interests, and they withdrew from the meeting during the discussion on those items.

To note any items that are a matter of urgency in the view of the Chair for consideration.

None to note.

The Chair shall propose that the minutes of the meeting held on 9^th December, 2022 be signed as a true record.

The Chair signed the minutes of the previous meeting, held on 9 December 2022, as a true record.

Hedd Vaughan-Evans, Head of Operations to present the report.

1.       That the Board consider and note the Quarter 3 Performance Report and updated Portfolio Risk Register.

2.       That the Board approve the submission of the Quarter 3 Performance Report to Welsh Government and UK Government, as well as the local authority scrutiny committees.

The report was submitted by Hedd Vaughan-Evans (Head of Operations) and the programme manager elaborated on the highlights of individual programmes.

RESOLVED

1.    That the Board considers and notes the Quarter 3 Performance Report and updated Portfolio Risk Register.

2.    That the Board approves the submission of the Quarter 3 Performance Report to the Welsh Government and UK Government, as well as the local authority scrutiny committees.

REASONS FOR THE DECISION

Quarterly reporting on progress against the North Wales Growth Deal is one of the requirements of the Final Deal Agreement. Following the NWEAB's consideration, the reports would be shared with Welsh Government, UK Government as well as the local authority scrutiny committees.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

It was enquired whether there was a plan to deal with the substantial risk that staff of the Portfolio Management Office, who were on fixed term contracts, may look for other opportunities. It was noted that there was a shortage of people with skills at present and that major companies were looking for a skilled workforce.

In response, it was noted that this was a high risk. It was explained that an investment had been made in resources within the Portfolio Management Office, and that current staff were very skilled in responding to the requirements of the UK Treasury in terms of business cases, namely the exact skills that many companies were looking for. This was being discussed with all North Wales Ambition funding partners and there was a number of potential options. It was intended to submit a paper to the Board in future offering options in terms of mitigation and responding to the risk.

Attention was drawn to a small error under the Low Carbon Energy Programme, which noted that the RAG status of the Innovative Local Energy project was green, although the logic referred to an amber score.

The officers were thanked for their detailed work in reporting back on performance and risks.

Dewi A Morgan, Host Authority Statutory Finance Officer and Sian Pugh, Host Authority Group Accountant to present the report.

1.       To note and accept the NWEAB’s revenue end of December 2022 review (Appendix 1 to the report), which includes using a further reduced amount from the North Wales Growth Deal grant to show a neutral position for the year.

2.       To note and accept the NWEAB’s reserves update (Appendix 2).

3.       To agree the NWEAB’s revised capital expenditure profile (Appendix 3).

The report was presented by Sian Pugh (Group Accountant).

RESOLVED

1.    To note and accept the NWEAB’s revenue end of December 2022 review (Appendix 1 to the report), which includes using a further reduced amount from the North Wales Growth Deal grant to show a neutral position for the year.

2.    To note and accept the NWEAB’s reserves update (Appendix 2).

3.    To agree the NWEAB’s revised capital expenditure profile (Appendix 3).

REASONS FOR THE DECISION

It was noted that a further underspend of £127,078 was forecast against the revenue budget in 2022/23. Any underspend at the end of the financial year may be transferred to reduce the amount used from the North Wales Growth Deal Grant.

To note the removal of two projects from the capital programme, which leaves £19.7m of the capital budget now unallocated to projects. The Board approved on 9 December 2022 for £7m of this funding to be allocated to a Portfolio Delivery Fund to support mature projects to move into delivery during 2023/24 and the remainder will be offered to new projects.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

Referring to the table in Appendix 3 of the report, it was noted that there was a presumption that substantial funding would start streaming into projects not allocated during 2024/25 and, therefore, there was a need for the whole proposal submission process for alternative projects to take place much faster than what had been happening so far.

In response, it was noted that one of the main considerations in terms of alternative projects was their ability to deliver. A project could not be conceptual and had to be nearing maturity for investment. The project would also have to indicate that it met the core objectives of creating new jobs within the economy, as well as bring forward private investment. They were seeking investment projects that were able to deliver against the core investment objectives, and it was believed that this had been clearly outlined in the criteria that had previously been agreed upon for new projects.

Hedd Vaughan-Evans, Head of Operations and Henry Aron, Energy Programme Manager to present the report.

1.       To agree to the change request submitted by Bangor University to retain phase 1 of the Egni project within the North Wales Growth Deal and withdraw phase 2 of the project.

2.       To allocate the funding released from Egni Phase 2 to the project replacement process and to extend the scope as set out in this report.

3.       To agree the scope and minimum requirements for replacement Low Carbon Energy projects as set out in the report.

4.       To agree to the revised timetable set out in this report for the project replacement process including a formal launch in February 2023.

5.       To delegate authority to the Portfolio Director, in consultation with the Chair and Vice-chair, to implement the Project Replacement Process as set out in this report and to undertake all necessary steps required to finalise the documentation required to commence the process.

The report was submitted by Hedd Vaughan-Evans (Head of Operations) and Henry Aron (Energy Programme Manager).

RESOLVED

1.    To agree to the change request submitted by Bangor University to retain phase 1 of the Egni project within the North Wales Growth Deal and withdraw phase 2 of the project.

2.    To allocate the funding released from Egni Phase 2 to the project replacement process and to extend the scope as set out in this report.

3.    To agree to the scope and minimum requirements for replacement Low Carbon Energy projects as set out in the report.

4.    To agree to the revised timetable set out in this report for the project replacement process including a formal launch in February 2023.

5.    To delegate authority to the Portfolio Director, in consultation with the Chair and Vice-chair, to implement the Project Replacement Process as set out in this report and to undertake all necessary steps required to finalise the documentation required to commence the process.

REASONS FOR THE DECISION

The North Wales Growth Deal has a change management process in place to ensure potential changes to the scope of the Growth Deal and the projects are captured, assessed and where relevant considered by the Board.

The Final Deal agreement sets out the board position in relation to potential replacement projects:
 "Any new or replacement projects to be brought forward for consideration must demonstrate delivery against the relevant programme business case and the objectives of the portfolio business case.  Where those projects are within the existing agreed financial envelope for the partnership, those projects would be a matter for the Economic Ambition Board to decide."

In December 2022, the Board agreed the criteria for the original project replacement process to be launched on the 16th January.  The Portfolio Director, in consultation with the Chair of the Economic Ambition Board took the decision to delay the process having been informed of the change request to be submitted by Bangor University regarding the Egni project which would have implications for this process.

The Egni project with Bangor University has been reporting red for over 12 months and has been under review by the Portfolio Management Office. A two-phase approach to the project was being explored with the University to accelerate delivery.
 

The original scope of the Egni project was to invest in the development of infrastructure at Bangor University and Menai Science Park, enhancing the North Wales and UK capabilities for innovation in low carbon energy and related areas, helping to create the conditions for new inward investment and business growth in the low carbon energy supply chain in North Wales.

As a result of delays to the development of the business case, escalating costs and a lack of certainly regarding the wider Bangor University estates strategy, the Portfolio Management Office have been working with the University to develop a phased approach to the project.  Phase 1 would focus on the smaller development at the Menai Science Park, with Phase 2 comprising of the wider  ...  view the full minutes text for item 7.

Graham Williams, Project Manager and Henry Aron, Low Carbon Energy Programme Manager to present the report.

1.       To endorse the proposed process for appointing a project sponsor.

2.       To delegate to the Portfolio Director in consultation with the Chair, Vice Chair and Monitoring Officer the authority to finalise the documentation for the selection process for appointing a project sponsor and deliver the process on behalf of the Board.

3.       To note that, following the completion of the selection process, a recommendation will be made to the Economic Ambition Board for approval.

The report was submitted by Henry Aron (Low Carbon Energy Programme Manager) and Graham Williams (Project Manager).

RESOLVED

1.    To endorse the proposed process for appointing a project sponsor.

2.    To delegate to the Portfolio Director in consultation with the Chair, Vice Chair and Monitoring Officer the authority to finalise the documentation for the selection process for appointing a project sponsor and deliver the process on behalf of the Board.

3.    To note that, following the completion of the selection process, a recommendation will be made to the Economic Ambition Board for approval.

REASONS FOR THE DECISION

The purpose of the report is to seek endorsement for delivering the process of appointing a project sponsor to deliver the project.

The agreed way forward for the project is to appoint a partner (project sponsor) by a competitive selection process to develop a business case and deliver a hydrogen hub project.  This started with a Prior Information Notice (PIN) to assess the market’s appetite, capacity andcapability to deliver the project in partnership with Ambition North Wales.

On 30th September 2022, the North Wales Economic Ambition Board agreed the following steps:

·         To endorse the next steps for the project and the draft procurement principles;

·         To delegate to the Portfolio Director, in consultation with the Chair and Vice-Chair, the authority to finalise the procurement specification and then to undertake the procurement activity on behalf of the board.

·         To note that following the completion of the procurement process, a recommendation will be made to the Board for approval.

The Portfolio Management Office subsequently worked with a team of specialist procurement advisors from the consultancy Local Partnerships to consider the most appropriate approach for appointing a sponsor. 

A number of meetings and workshops were held to discuss the potential procurement routes together with their advantages, disadvantages, and constraints. The process concluded that the use of a competitive public procurement in the context of the Public Procurement Regulations would not be the best approach for appointing a project sponsor.

Consequently, the option of utilising a process similar to the ‘Replacement Projects Process’ was considered as a more suitable process for appointing a sponsor. It was recommended that the process would provide a suitable alternative to a formal procurement process and would assist accelerate the process, provided that the process was implemented openly and transparently and communicated widely to potentially interested parties.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

In response to an observation, it was agreed that the timescale for completing the process was challenging but it would be sought to accelerate this forward as soon as possible.  It was noted that a briefing event had been pencilled in for 18 April, and it would be an opportunity to learn lessons from similar processes, and also to receive questions from the market.  These questions would need to be further considered and consulted upon, and our processes and documentation would possibly need to be amended slightly. It was also emphasised that  ...  view the full minutes text for item 8.

David Roberts, Chair of North Wales Regional Skills Partnership and Sian Lloyd Roberts, Regional Skills Manager to present the report.

To endorse the regional Skills and Employment Plan and the three priorities as set out in the plan.

The report was submitted by David Roberts (Chair of the North Wales Regional Skills Partnership) and Sian Lloyd Roberts (Regional Skills Manager).

RESOLVED to endorse the regional Skills and Employment Plan and the three priorities as set out in the plan.

REASONS FOR THE DECISION

The North Wales Skills and Employment Plan 2023-2025 has been developed to inform Welsh Government’s strategic approach to the delivery of skills and employment provision in the region.

It has been produced by the North Wales Regional Skills Partnership after consultations with regional stakeholders, providers, and industry from April – September 2022.

There is a need to report to the North Wales Economic Ambition Board on the Plan.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

It was noted that the skills field was core to the Board's work and that the Board would be very pleased to support the work of the Skills Partnership.

It was noted that we had a social and moral duty to help over 200,000 disabled people in Wales to get access to employment, and it would be good if the Board and Skills Partnership could act on a joint level in that regard.

In response, it was noted that it was fully agreed with the observation and that the economic element was also important. There was a need to facilitate access to people from all backgrounds to the world of work, and the starting point was raising awareness and understanding of the situation. It was noted that disabled people had an enormous contribution to make, and possibly that Covid had paved the way by forcing everyone to think about employment in a more flexible manner e.g. working virtually etc.  It was further noted that the Welsh Government had disability champions and that they were currently pushing this agenda forward.  In this regard, the team was eager to collaborate with the Welsh Government, and to use the programme they had to ensure that businesses and employers worked with us to get more disabled people into the workforce.  A desire was also stated to collaborate with the Business Delivery Board in this regard in order to push the agenda forward.

The aspirations and priorities of the report were greatly welcomed and, as a key partner of the Growth Deal, a wish was expressed for all the work, those aspirations and priorities to be an integral part of everything carried out by the Board, and that the Board and the Skills Partnership collaborated to realise the priorities and aspirations through all of the projects.

In response, it was confirmed that the Skills Partnership would be very pleased of the opportunity to interact closer with the Board. It was further noted that the Partnership already collaborated closely with the Portfolio Management Office and contributed towards the delivery of the Growth Deal. Therefore, they wished to report to the Ambition Board quite regularly on the development of the action plan for the skills plan and to provide updates.  ...  view the full minutes text for item 9.

The Chair shall propose that the press and public be excluded from the meeting during the discussion on the following item as information contained in the report is confidential as defined in section 100A(3) of the Local Government Act 1972 on the basis that it was provided by a Government Department on terms which forbid its public disclosure.

The public must be excluded from meetings whenever it is likely in view of the nature of the business to be transacted, or the nature of the proceedings, that confidential information would be disclosed.

RESOLVED to exclude the press and public from the meeting during the discussion on the following item as information contained in the report is confidential as defined in section 100(A)3 of the Local Government Act 1972 on the basis that it was provided by a Government Department on terms which forbid its public disclosure.

The public must be excluded from meetings whenever it is likely in view of the nature of the business to be transacted or the nature of the proceedings that confidential information will be disclosed.

Alwen Williams, Portfolio Director and Hedd Vaughan-Evans, Head of Operations to present the report.

1.    That the Board agree to the change request for the Former North Wales Hospital, Denbigh and allocate a maximum of £3.0m extra temporarily to the project in the event that the Levelling Up bid is unsuccessful and subject to the separate approval of the Outline Business Case and Full Business Case.  No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

2.    That the Board agree to the change request for the Glynllifon Rural Economy Hub and allocate a maximum of £1.97m extra temporarily to the project subject to the separate approval of the Full Business Case. No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

3.    That the Board agree to the change request for the Enterprise Engineering and Optics Centre and allocate a maximum of £1.7m extra temporarily to the project subject to the separate approval of the Full Business Case. No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

4.    That the Board allocate the remaining £225,000 in the Portfolio Delivery Fund to the Last Few % project subject to the separate approval of a future change request and a Full Business Case.

The report was submitted by Hedd Vaughan-Evans (Head of Operations).

RESOLVED

1.    That the Board agrees to the change request for the Former North Wales Hospital, Denbigh and to allocate a maximum of £3.0m extra temporarily to the project in the event that the Levelling Up bid is unsuccessful and subject to the separate approval of the Outline Business Case and Full Business Case.  No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

2.    That the Board agrees to the change request for the Glynllifon Rural Economy Hub and to allocate a maximum of £1.97m extra temporarily to the project subject to the separate approval of the Full Business Case. No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

3.    That the Board agrees to the change request for the Enterprise Engineering and Optics Centre and to allocate a maximum of £1.7m extra temporarily to the project subject to the separate approval of the Full Business Case. No further funding for the project will be allocated through the Growth Deal, any additional increase in costs will have to be incurred by the Project Sponsors.

4.    That the Board allocates the remaining £225,000 in the Portfolio Delivery Fund to the Last Few % project subject to the separate approval of a future change request and a Full Business Case.

REASONS FOR THE DECISION

In December 2022, the Board agreed to establish a Portfolio Delivery Fund for 2023-24 and allocated up to £7m of the funding released as a result of the withdrawal of the Bodelwyddan and Llysfasi projects to this fund to support mature projects within the portfolio dealing with cost inflation or viability issues to move into delivery during 2023-24 (subject to separate Board decisions).

The purpose of this report is to set out the change requests for additional funding to be provided through the Portfolio Delivery Fund to support the work of delivering projects during the 2023-24 financial year.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

The report was discussed.