Delivery Assurance Group (DAG) report: quarter 1 2022 to 2023

Section 6: Progress in delivering SR15 Completion projects

At the end of Q1 2022-23 we had planned to have 70 of the 86 delayed SR15 projects through acceptance. (Table 1). Due to the realisation of further risks on these projects 21 have still to achieve Gate 100 acceptance. 7 of these are now forecasting acceptance in Q2 2022-23 with a further 4 in Q3 2022-23 and 5 in Q4 2022/-. 4 projects are forecasting completion in 2023-24 with 1 project (Mannofield WTW) forecasting acceptance in Q1 2024-25.

The reasons for reforecast are: -

• The delivery of 6 projects has been reforecast due to 3^rd party issues.
• The delivery of a further 11 projects has been reforecast due to construction risks being realised. An example of this is at Londornoch WTW where work has been extended due to both the volumes of sludge encountered and re-sequencing of the contractor programme to allow the new sludge balance tank to be commissioned prior to emptying sludge lagoon No.2.
• A further 3 projects have been reforecast as additional scope is required to complete the project. An example of this is at Dalmarnock WTW where additional drain down and cleaning of existing assets was required to support the capital works together with the identification and removal of asbestos on the site.
• 1 project Easdale - Seaview Cottage ST has been delayed pending confirmation of the proposed solution for the nearby Clachan Balvicar WwTW where trials to provide additional filtration/UV treatment to protect the receiving water are currently ongoing.

5 delayed projects are yet to start on site. These are:

• Rockcliffe Bathing Water where there has been significant community engagement on the location of the proposed works to minimise impact. The requirement to build the works below ground in hard rock as driven a considerable price increase and the proposed option is currently being re-evaluated;
• Roberton WTW where the operational solution trialled to provide pH correction and coagulation has not been successful and a new project is being developed;
• Picketlaw WTW Main Out where the proposed solution has been re-evaluated to take into consideration the impact on the availability of supply of the hot weather experienced last summer incorporating a different pipeline solution fed from two separate zones to meet the demand patterns;
• Boardhouse WTW where the proposed scope was found to be undeliverable. On investigation considerable siltation was found at the inlet pipe and this will have to be addressed before any screening at the inlet is considered;
• West Lewis where the project had been delayed due to the discovery of a crannog. We have also experience 3^rd party issues around land together with environmental concerns over the proposed access road. A revised project scope has now been agreed.

36 of the SR15 projects originally planned for delivery post March 2021 have now achieved Gate 100 acceptance against a target for Q1 2022-23 44. Milnby Weir eel pass previously reported as being delivered later than planned was completed in Q1 2022-23. 2 projects (Improvement to Supply-Demand Balance - Stornoway WRZ and Water Quality Improvement - Camps RSZ) have been delivered ahead of plan. While 10 projects have been impacted by delays; Kirkmichael WTW has been returned to the plan stage as the promoted solution was not successful with the remaining projects impacted by design / construction delays. 4 of these projects are forecasting completion in Q2. The remaining projects, except for Kirkmichael where a revised solution is still to be confirmed, are forecasting to be complete by the summer 2023-24.

Conclusion

The DAGWG is invited to note that:

• At the end of Q1 2022-23 of the new regulatory period Tier 2 Investment was £147m made up of planned repair and refurbishment (£101m), enhancement (including flooding) (£32m) and growth (£14m).
• Scottish Water's IPOD position at 371 points is on track against the forecast dates in the Committed List.
• There has been some slippage on the 'Acceptance' milestones in the water and wastewater and completion programmes due to risks materialising. This has resulted in a number of acceptance dates being re-forecast and learnings taken on board for future commitments.