Water - Delivery Assurance Group (DAG) report: quarter 2 - 2022 to 2023

5. Overall Project Progress Wastewater Portfolio

The Wastewater Portfolio comprises 3 sub portfolios: SR15 Completion; Wastewater Treatment; and Wastewater Network. Detail on progress can be found in Appendix B. At Q2 performance in the Wastewater portfolio is outside the forecast range (Figure 9). 167 points have been achieved to date compared with a target range of 175 - 241. The Gate 100 Acceptance milestone continues to be challenging due to risks being realised.

SOS

Performance on the Start on Site milestone (Figure 10) remains strong. 29 projects have now started on site, 5 of these in Q2: 2 Wastewater Network projects (Shieldaig Rd Glasgow and Marchmont Rd Edinburgh); and 3 Wastewater Treatment project (Perth City WWTW IFAS, Kirkcaldy STW and Shieldhall WWTW Storm bypass Culvert).

Acceptance

6 projects achieved acceptance in Q2, delivering benefit to customers and bringing the total to 77 projects that have achieved acceptance against a forecast range of 101-117 at the time of commitment.

In the SR15 Completion sub-portfolio, the acceptance of 9 projects has been reforecast. 5 of these projects are now substantially complete and forecasting acceptance in Q3 with a further 2 forecasting acceptance in Q4.

Reasons for reforecasting:

• 4 projects (Londornoch WTW Sludge Lagoon Upgrade, Craigneuk Avenue Airdrie, Craiglieth Rd Edinburgh and Townhead St Stonehouse) have been reforecast due to construction risks being realised
• 5 (S087 UID - Scotwood Overflow S043, Water of Leith Batch 10, Wellgate Larnark, Main St Newtonmore and UID Cambuslang Road Richmond Laundry) were due to third party delays.

In the Wastewater Network Sub-portfolio, the delivery of 14 projects has been reforecast (1 of these within the 3 month target range). 4 of these projects are now substantially complete and forecasting acceptance in Q3 with a further 6 forecasting acceptance in Q4. Reasons for reforecasting:

• 6 projects (Claredon Place Dunblane, Infra-Kingdom Park, Dunfermline Wellwood Wastewater Infrastructure and CAS Compliance Improvements - Networks East & North, Coalburn Road, Water of Leith Batch 4) due to third party issues with land, power supply and road access.

Construction risks have been realised for a further 6 projects. Additional scope was identified for an additional 2 projects to allow the project to be delivered.

The delivery of 13 projects in the Wastewater Treatment programme has also been reforecast. 7 of these projects are now substantially complete and forecasting acceptance in Q3 with a further 5 forecasting acceptance in Q4.

Reasons for reforecasting:

• 4 of these are due to third party issues (Canonbie WwTW - Upgrade Growth, Burrelton WwTW – Growth, HV Asset Replacement Shieldhall WWTW and Banchory WwTW - Growth).
• 7 are due to general construction risks and 2 projects (Kirkconnel STW and Ardersier WWTW) where additional scope was required to allow the project to be completed.
• The final projects (HV Asset Replacement at Shieldhall WWTW) have been impacted by third party delays and is now forecasting delivery early in year 3.

We continue to work to understand and learn from risks to improve the forecast and delivery of new projects. When committing to the delivery of a project we balance the likelihood of delay due to risks against setting an over-cautious target with the potential to lose focus on the need to drive delivery.

Financial Completion

Performance on the Gate 110 Financial Completion milestone (Figure 12) is on target with all 3 sub-portfolios being within the target range. 61 projects have now achieved Gate 110, 9 of these in Q2 2022/23.