Delivery Assurance Group report: quarter 4 2021 to 2022

Section 3: Overall Project Progress Water Portfolio

The Water Portfolio comprises 3 sub portfolios: SR15 Completion, Water Quality and Water Supply.

Year to date performance in the water portfolio is at the top end of the target range (Figure 5). Although all three contributing milestones are within the target range, we have seen a significant improvement in milestone attainment at year end driven by the Start on Site and Gate 110 financial completion milestones being delivered earlier than planned on some projects.

Performance on the Start on Site milestone (figure 6) remains strong with two of the sub-portfolios achieving a start on site performance in the top half of the target range with the SR15 sub-portfolio achieving the central plan target. 36 projects have now started on site, 10 of these in Q4 2021-22. 4 Water Supply projects (Munnoch Breach, Improvement to Supply-Demand Balance - Stornoway WRZ, Stonebyres DMA Mains Rehabilitation and Eela WTW Interim Measures) and 2 Water Quality projects (Stornoway WTW - Interim THM and Cryptosporidium measures and Mains Rehabilitation Ph1 Ma2b Patna DMA) have achieved this milestone earlier than planned.

Although still within the planned target range we have experienced challenges in achieving the Gate 100 Acceptance milestone (figure 7) on two of the sub-programmes.

7 projects in the SR15 Completion programme have been reforecast; 3 of these (Yarrowfues WTW main-out, Back Tolsta and Ness WTW) due to 3^rd party issues, 3 due to construction risks being realised (South Edinburgh Service Resilience, Ringford WTW and Uig WTW) and 1 (Fair Isle) where concerns raised by the community over Covid meant that access to the island was restricted.

The delivery of 7 projects in the Water Quality sub programme had to be reforecast; 4 (Whitehillocks WTW, Pateshill WTW, Glenlatterach WTW and Loch Ness Regional WTW Scheme) due to construction risks being realised and a further 2 (Bradan WTW and Daer CWT) due to additional scope being required to complete the projects. An additional project Kirkmichael WTW has been returned to the Plan stage to review alternative option as the operational solution identified has proven to be ineffective. 2 service reservoir repair projects at Aberdeen Kirkhill and Rochomie have been completed earlier than planned.

The Water Supply sub-portfolio remains on track with milestone achievement within the planned range. We continue to work with the delivery teams to understand and learn from the challenges to improve the forecast and delivery of new projects as they are developed.

Performance on the Gate 110 Financial Completion milestone (figure 8) remains strong with two of the sub-portfolios achieving a start on site performance above the top half of the target range with the Water Quality sub-portfolio achieving the central plan target (Figure 8). 68 projects have now achieved Gate 110, 35 of these in Q4 2021-22. 29 projects have achieved this milestone earlier than planned with 2 Water Supply projects, 3 Water Quality projects and 3 SR15 Completion projects forecasting to be delivered later than planned as outstanding commercial issues are yet to be resolved.