Agenda item

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

 

1.    To note the Quarter 2 Performance Report and updated Portfolio Risk Register.

 

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

Alwen Williams (Portfolio Director) presented an overview of the report highlights, and the Programme Managers provided details on the programme updates, as follows:-

 

·         Low Carbon Energy - Henry Aron (Energy Programme Manager);

·         Digital - Stuart Whitfield (Digital Programme Manager);

·         Land and Property - David Matthews (Land and Property Programme Manager);

·         Agri-Food and Tourism and Innovation in High Value Manufacturing - Robyn Lovelock (Growth Deal Programme Manager).

 

Alwen Williams (Portfolio Director) then presented a table tracking the work of delivering projects and Henry Aron (Energy Programme Manager) presented an overview of the main risks.

 

DECISION

1.         To note the Quarter 2 Performance Report and updated Portfolio Risk Register.

2.         To approve the submission of the Quarter 2 Performance Report to 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.

 

With reference to the Parc Bryn Cegin, Bangor Joint Venture Agreement (Land and Property Programme), clarification was sought about the comment made during the presentation that the negotiations had reached the stage where the financial risks to the Board had been capped.  In response, the Programme Manager noted that while it could not be confirmed that there is no cost increase, the Board would not spend above the amount it had allocated for the project, and if the cost was less than the amount allocated, then the Board would have the right to redeem the funds for a different project within the Growth Deal.

 

With reference to the Enterprise Engineering and Optics Centre (Innovation in High Value Manufacturing Programme), clarification was sought about the observation made during the presentation that there is an estimated 30-40% increase in the costs of setting up the centre.  In response, the Programme Manager noted that there were two funding gaps, one within the Agri-Food and Tourism Programme and the other within the Innovation in High Value Manufacturing Programme. In terms of the cost funding gap of the Glynllifon Rural Economy Hub project, it was noted that the team at Grŵp Llandrillo Menai were currently looking at three options, namely:-

 

·         Reduce the scope of the project

·         Try to secure additional funding for the project

·         Withdraw the project.

 

Regarding the cost funding gap of setting up the Enterprise Engineering and Optics Centre, it was noted that the team at Glyndŵr University were also developing options. It was not yet clear exactly what those options would be, but they had been asked to carry out an exercise similar to that of Grŵp Llandrillo Menai, looking at changing the scope of the project and considering any other possible mitigations for managing the gap. They noted that they were also looking at changes to the timing of the project.

 

Glyndŵr University's representative noted that it was inevitable that there would be significant delays to the Enterprise Engineering and Optics Centre project, but wished to keep an open mind as to the possibility of presenting the full business case to the Board for consideration somewhere between the originally envisaged date of March 2023, and the date currently being stated, which is September 2023.

 

The Chair noted that that would be welcome news.  

 

In response to a question regarding the timing of projects in general, the Portfolio Director noted that every opportunity to bring decisions to the Board's attention sooner would be welcomed, which meant avoiding unnecessary cost increases in the current climate.  In terms of the specific project in question, it was believed to be within Glyndŵr University's control to bring the business case forward, and it was confirmed that the Portfolio Management Office, the Growth Deal Programme Manager and the team would do everything to facilitate that if the business case was ready for approval.

 

Grŵp Llandrillo Menai's representative noted, while accepting that it was possible to continue to put the business plans together, that it was difficult to justify the energy and expense of doing so if the financial package was not in place. He added that he was pleased with the work that had taken place over the past few weeks, specifically with the Growth Deal Programme Manager and the team in terms of trying to come up with options, but would like to think that a paper could be brought soon to the Board, as that in turn would lead increasing momentum to move on to the next steps.

 

In reference to the risk register, it was noted:-

 

·         That it was understood why two of the risks, namely Economic Recovery and the EU / UK Implementation and Trade Agreement, had been closed. Risks were inevitable, but it was possible to be confident that the Board had the capacity and skillset to manage those risks and move the plans forward. 

·         That the risks were not actually eliminated, but instead replaced by larger risks unfortunately.