Infrastructure Investment Plan 2021-22 to 2025-26: Major capital projects progress update (September 2022)

Sector: Transport

Project: A9 Dualling Tomatin to Moy

Business case approved stages: Third project phase of A9 Dualling programme involves approximately six miles (9.6km) of online widening of existing single carriageway to an all-purpose dual carriageway, extending from existing dual carriageways to the south of Tomatin and to the north of Moy. The Outline Business Case (OBC) outlined that the project was estimated to cost £197 million and planned to be operational in December 2025.

Progress at March 2022: No change to cost or timing since the last report.

Progress at September 2022: No change to cost or timing since the last report.

The project is currently in procurement with the contract anticipated to be awarded in December 2022. The Full Business Case (FBC) will be updated prior to contract award with costs from the successful tenderer.

Contact for public enquiries: email: info@transport.gov.scot

Project: Reston and East Linton Rail Stations

Business case approved stages: Delivery of two new fully accessible Rail Stations with car parks (Reston Station in the Scottish Borders and East Linton Station in East Lothian).

The OBC outlined that project was estimated to cost £35 million and that it is planned to be operational in December 2022. The FBC outlined that the overall project was estimated to cost £35 million and was planned to be operational in Summer 2023.

Progress at March 2022: No change to cost since the last report.

Construction of Reston Station is now complete with the station entering service in May 2022. This is later than previously reported and is due to the impact of COVID-19 and delays experienced during the project construction phase. Construction of East Linton Station commenced in November 2021 and the station is planned to become operational by March 2024. This is later than previously reported and is due to the alignment of the project entry into service with closure works to Markle Level Crossing.

Progress at September 2022: No change to cost or timing since the last report.

Contact for public enquiries: email: Alastair.camelford@transport.gov.scot

Project: East Kilbride Rail Enhancement

Business case approved stages: Project is part of the East Kilbride and Barrhead Rail Enhancement scheme. The scheme will make rail services reliable, efficient and attractive to passengers and support modal shift whilst progressing against the Scottish Government's target to decarbonising the rail network. The OBC outlined that total project cost was estimated to be £100 million to £120 million and that it was estimated to be operational December 2024.

Progress at March 2022: The total project cost is now estimated at £111 million to £124 million which is an increase from that at OBC and as previously reported. This is due to the scope being changed and Network Rail providing an updated estimate which includes the additional scope. The construction start date is now later than previously reported

which is subject to review due to the additional scope. The operational date however the remains as that at OBC as previously reported.

Progress at September 2022: No change to cost or timing since the last report.

Contact for public enquiries: email: Rhona.proctor@transport.gov.scot

Project: Levenmouth Rail project

Business case approved stages: Scheme will re-open the disused rail line between

Thornton junction and Leven in Fife, providing new passenger rail services to connect the Levenmouth area to Fife, Edinburgh, and the wider rail network. The OBC was predicated on a project cost estimate of £70 million and it is estimated to be operational by December 2023. The FBC was predicated on an anticipated final cost of £116 million and an estimated operational date of spring 2024.

Progress at March 2022: The FBC was approved on 14 December 2021 and project is now in construction. FBC approval was predicated on an anticipated final cost of £116 million and an estimated operational date of spring 2024. The FBC cost is an increase from that at OBC and reflects the revised cost and scope which has been expanded to include substantial additional investment which will realise significant further opportunities and benefits such as electrification and active travel options. It will maximise the economic and social benefits for the local area and also allow the potential for freight and tourism to be explored construction site.

The FBC operational date is later than that at OBC. This is due to the December 2023 date for the introduction of passenger services being indicative and predicated on the project scope announced in 2019. Since the project was announced in 2019, the scope has been expanded to include substantial additional investment which will realise significant further opportunities and benefits for the Levenmouth economic area. Transport Scotland and Network Rail are working closely with their industry partners to deliver this transformational project by spring 2024.

Progress at September 2022: No change to cost or timing since the last report.

Contact for public enquiries: email: Keavy.o'neill@transport.gov.scot

Project: Inverness Airport Station

Business case approved stages: Project will provide a greener method for people to travel to Inverness Airport and help to enable transition to Net Zero Emissions and Environmental Sustainability. The FBC outlined that the project was estimated to cost £39.6 million and that it is planned to be operational in December 2022.

Progress at March 2022: No change to cost or timing since the last report.

Progress at September 2022: No change to timing since the last report.

The total cost is now estimated at £41.8 million which is an increase to that at FBC and is due to a revised final cost incorporating inflation. The project is in construction and is progressing to programme.

Contact for public enquiries: email: darius.astell@transport.gov.scot

Project: Barrhead Rail Enhancement

Business case approved stages: Project is part of the East Kilbride and Barrhead Rail Enhancement scheme. This scheme is to decarbonise the corridors and to provide improved access to the rail network for the communities along these corridors. The scheme will make rail services reliable, efficient and attractive to passengers and support modal shift whilst progressing against Scottish Government's target to decarbonising the rail network. The FBC outlined that the total project cost was estimated to be £63 million and was planned to be operational in December 2023.

Progress at March 2022: No change to cost or timing since the last report.

The project commenced construction in April 2022 and is progressing to programme.

Progress at September 2022: No change to cost or timing since the last report.

Contact for public enquiries: email: Rhona.proctor@transport.gov.scot

Project: Borders Railway Decarbonisation

Business case approved stages: Project to facilitate the decarbonisation of rolling stock emissions on the Borders Railway through the installation of railway electrification infrastructure. This infrastructure will allow the replacement of the diesel rolling stock which currently operate on the route with new Battery Electric rolling stock. The OBC outlines that the total project cost is estimated to be £32 million and that the project is estimated to commence construction in 2023 and be operational in May 2027.

Progress at March 2022: N/A

Progress at September 2022: The OBC outlines that the total project cost is estimated to be £32 million and that the project is estimated to commence construction in 2023 and be operational in May 2027. The project is in procurement and progressing to programme.

Contact for public enquiries: email: Alastair.camelford@transport.gov.scot

Project: Fife Decarbonisation

Business case approved stages: Project to facilitate the decarbonisation of rolling stock emissions on the Fife Railway through the installation of railway electrification infrastructure. This infrastructure will allow the replacement of the diesel rolling stock which currently operate on the route with new Battery Electric rolling stock. The OBC outlines that the total project cost is estimated to be £210 million with the full project estimated be operational in December 2025.

Progress at March 2022: N/A

Progress at September 2022: The OBC outlines that the total project cost is estimated to be £210 million. The Haymarket to Dalmeny section was approved to FBC in March 2022, with a total cost of £55.6 million and construction in this area has commenced with a completion date of December 2024. The full project is estimated to commence construction in early 2023 and be operational in December 2025. The project is in design / procurement and progressing to programme.

Contact for public enquiries: email: nicola.thomson@transport.gov.scot

Project: CMAL - Two new 100 metre ferries

Business case approved stages: Procurement commenced and Pre-Qualification

Questionnaires were issued by CMAL (Caledonian Maritime Assets Ltd) on 15 October 2014 with tender returns on 31 March 2015 and the Preferred Bidder announced on 31 August 2015. The contract worth £97 million to build the two 100m 'dual-fuel' ferries for the Clyde and Hebrides Ferry Service (CHFS) was awarded on 16 October 2015. The first ferry was expected to be delivered in May 2018 with the second vessel following a few months later.

Progress at March 2022: The total estimated cost is now between a range of £119 million and £123 million. This is an increase in that previously reported and is due to a legacy cabling issue and revised delivery programme. The total additional public expenditure over and above the original contract price is now between £105.3 million and £109.3 million.

The delivery of 801 is now scheduled to be between March 2023 and May 2023 and the delivery of 802 is now scheduled to be between October 2023 and December 2023. This is later than that previously reported and is due to the significant overhaul of the delivery programme undertaken in February 2022 to take into account the impact of the legacy cabling issue.

Progress at September 2022: The Chief Executive Officer (CEO) of Ferguson Marine wrote to the Scottish Government and the Net Zero, Energy and Transport Committee in late September setting out his proposals relating to the cost estimates and timetable for delivering both vessels. In his update, the total estimated cost to complete is now £202.6 million (including £6.2 million contingency). The Scottish Government has not agreed to an increase in funding for Ferguson Marine since the 23 March 2022 letter to MSP's setting out delivery costs. The Scottish Government is currently undertaking its own due diligence which is being supported by external, independent financial advisors to ensure that a rigorous approach is taken to scrutinising this request for additional funding.

The CEO has reported that delivery of 801 remains within the delivery window of March to May 2023, with Liquefied Natural Gas (LNG) commissioning due in May 2023. Ferguson Marine have indicated that the delivery of 802 is now forecast to be between January and March 2024. This is later than previously reported and Ferguson Marine attribute this to a change of approach with design consultants for the remainder of the 802 construction, and to allow lessons learned from the build of 801 to be implemented successfully.

Contact for public enquiries: email: alistair.thomson@transport.gov.scot