Agenda item

Stuart Whitfield (Digital Programme Manager) to present the report

1.     To approve the Outline Business Case for the Advanced Wireless project subject to Welsh Government and UK Government approval of the assurance process undertaken, subject to the Portfolio Management Office addressing the outstanding issues set out in Section 7 of the report, and request that a Full Business Case is prepared for the Board to consider.

 

2.     To delegate to the Portfolio Director, in consultation with the Chair and Vice Chair, final approval of the procurement specification and social value criteria prior to project funders commencing procurement.

 

3.     To authorise the Portfolio Director in consultation with the Host Authority Section 151 Officer and Monitoring Officer to agree draft terms in accordance with this report for approval by the NWEAB as a basis for the final funding arrangements for the project which will form the basis of the Grant Offer Letter which will be agreed by the Board at the Full Business Case stage.

 

The report was submitted by the Digital Programme Manager.

 

DECISION

 

1.     To approve the Outline Business Case for the Advanced Wireless project subject to Welsh Government and UK Government approval of the assurance process undertaken, subject to the Portfolio Management Office addressing the outstanding issues set out in Section 7 of the report, and request that a Full Business Case is prepared for the Board to consider.

 

2.     To delegate to the Portfolio Director, in consultation with the Chair and Vice Chair, final approval of the procurement specification and social value criteria prior to project funders commencing procurement.

 

3.     To authorise the Portfolio Director in consultation with the Host Authority Section 151 Officer and Monitoring Officer to agree draft terms in accordance with this report for approval by the NWEAB as a basis for the final funding arrangements for the project which will form the basis of the Grant Offer Letter which will be agreed by the Board at the Full Business Case stage.

 

REASONS FOR THE DECISION

 

To seek the Board's approval for the Advanced Wireless Project Outline Business Case.

 

As a project delivered by Ambition North Wales, approval was required by the Board to establish the frameworks that will deliver the project.

 

DISCUSSION

 

It was explained that the project would support businesses and public bodies to invest in the latest wireless technology, including 5G and state-of-the-art Wi-Fi across the North Wales region. It was hoped that this would increase efficiency and productivity. It was noted that there was evidence to support that this kind of investment led to business development, commercial sustainability and created more jobs. Attention was drawn to the fact that several large companies had taken advantage of this type of technology and the project hoped to reduce the commercial risks to companies as they newly approached the development. It was considered that sectors that would benefit the most from this technology included manufacturing, transport, logistics, agriculture and tourism. Examples were shared of potential investments within these areas such as providing equipment for production lines in factories, 5G private networks, upgrading networks to support logistics operations in transport hubs as well as Smart Towns applications to improve monitoring and communication in our town centres.

 

It was reported that this project was the second part of the 'Connected Campuses' project. It was explained that the first project was a LPWAN project, which extended Low Power Wide Area Network provision to support innovative 'Internet of things' applications across public and private sectors through LoRaWAN wireless technology. Members were reminded that this project had already been approved by the Board.

 

It was explained that the main spending objective of the project was to 'Enable 100-200 businesses and public sector users in all North Wales counties to take advantage of advanced wireless connectivity by 2030'. It was hoped that this would lead to the creation of between 130-200 jobs within the region and the creation of an additional net GVA of between £41 million and £62 million by 2036. It was also estimated that there would be a total investment of between £13 million and £20 million by 2036.

 

It was noted that this project had been developed in compliance with the United Kingdom's wireless Infrastructure Strategy published by the Government. It was confirmed that this included wi-fi, satellite, LPWAN and 5G connections. It was noted that the Board was collaborating and replicating technology that was in action in other authorities across Britain to make the state-of-the-art technology available to North Wales. It was acknowledged that there was no confirmation from the Government following the general election on their views on advanced wireless strategies but stressed that officers would confirm these views before submitting a full business case.

 

Attention was drawn to weaknesses in the current arrangements across the North Wales region such as providing financial support with initial investment from regional users, recognising that the adoption of new technology for business created concern and the current affordability of companies could be a barrier to the development of the project. Reference was also made to the need to address knowledge and skills gaps to increase company awareness and capacity within the region to ensure high levels of adoption for the project.

 

It was reported that a £19 million fund would be implemented as a flexible grant scheme to fund the adoption of advanced wireless solutions. It was noted that the scheme was administrated by Ambition North Wales over a three-year period following the design of an initial scheme, the first step was to include the grant scheme design and establish it before providing capital funding to sector organisations that would make a funding application in accordance with the conditions of the scheme eligibility criteria.

 

Reference was made to capital expenditure noting that it was dependent on a consultation on the initial project. The revenue expenditure estimates were noted and the importance of confirming a budget for 'Demand Stimulation' was emphasised to ensure that the sectors made use of the new advanced wireless technology. It was explained this would promote collaboration within the region.

 

Members were guided through the feedback received during the development of the project to date and the actions achieved as part of the Assurance Project were confirmed. It was detailed that an Amber Assessment was received in a Gateway Review in May 2024 along with very useful feedback on the development of the project.

 

An overview of the main risks of the project was shared, which included:

·       If the demand for funds from the sectors was limited, the benefits of the project would not be realised.

·       If the administrative fee applied to successful applicants prevented applicants from submitting an application, reduced funds from the capital fund may be presented. This could impair the ability to achieve spending objectives.

·       If there was not enough demand for the grants at the minimum values prescribed in the project, the costs associated with delivery and administration could become unaffordable.

 

It was confirmed that Ambition North Wales was aware of these risks and set out procedures to ensure that the risks were greeted.

 

It was explained that Ambition North Wales had taken advantage of their connections to raise awareness of these projects and explain the benefits that would be available for them when investing in advanced wireless technology. It was noted that they had held meetings with companies to inform them further and they were confident that the project would be popular among the sectors. It was recognised that it was more challenging to contact some sectors and it was emphasised that more research and regular communication was needed with companies to understand the real interest to join the project.

 

It was confirmed that it was intended to submit the full business case to the Board in early 2025.