Infrastructure Investment Plan 2021-22 to 2025-26: programme pipeline update - March 2022

Sector: Cities / Regions

Programme name: Glasgow City Region Deal

Programme description: The Deal empowers Glasgow and its City Region partners to identify, manage and deliver a programme of investment to stimulate economic growth and create jobs in their area, spreading the benefits of economic growth across Glasgow and Clyde Valley, and ensuring deprived areas benefit from this growth.

Estimated total investment: £1.13 billion. Scottish Government is a full partner and investing £500 million over 20 years. UK Government investing £500 million over same period and the regional partners £130 million. Scottish Government is also investing £20 million in the Imaging Centre of Excellence.

How is programme being funded: Capital funded.

Programme delivery timetable: 20 years from 2015-16 until 2034-35.

Latest programme progress: The deal, which was signed August 2014, is now well underway and the Glasgow City Region Cabinet has approved a number of projects. Project selection and approval is a matter for the Glasgow City Region Cabinet (and not Scottish Ministers).

The main span of the new pedestrian and cyclist bridge linking Sighthill with Glasgow City Centre, was installed over the M8 at the end of July 2021. Work continues on constructing the approaches to the bridge and creating a plaza to the north of the bridge. Construction work has begun on a new Greenock cruise ship visitor centre as part of a £19.2 million development in the area and is accompanied by a new £200 million floating pontoon and West Dunbartonshire Council have taken ownership of a 150 acre former Exxon site as part of a project to create a major industrial and commercial development.

Contribution to economic development: The City Deal supports Glasgow partners to develop the region's economy.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Aberdeen City Region Deal

Programme description: The 10-year Deal paves the way for investment in innovation and internationalisation as well as digital connectivity and infrastructure across the region.

Estimated total investment: £936 million. Scottish and UK Governments have committed to investing up to £125 million each and the regional partners £686 million (revised from an original commitment of £576 million). The Scottish Government has also committed to invest a further £254 million over the same 10-year period as the City Region Deal to deliver further economic benefits.

How is programme being funded: Capital funded

Programme delivery timetable: 10 years from 2016 until 2026.

Latest programme progress: The Deal was signed in November 2016.

The Net Zero Technology Centre has tightened its strategic focus following its relaunch in June 2021. This is concentrated in three areas: reducing operating emissions in high carbon sectors; encouraging investment and innovation in low carbon power generation, storage and infrastructure; and digitising and automation offshore energy operations. Cohort 4 of its TechX Clean Energy Accelerator which is helping energy start-ups and early-stage business to grow, was launched in February 2022.

Business case revisions have been made for the Food Hub for Innovation (Seedpod) in light of rising costs associated with market pressures. Mitigating steps have been taken through flexibilities incorporated into designs and exploring potential sources of additional funding.

The strategic business case for external transport links to Aberdeen South Harbour was approved in March 2022. It is expected to proceed through preferred route confirmation in 2022-23 before work begins on the preliminary design stage which is currently scheduled to conclude in 2025.

Construction work is well underway for the Bio Therapeutic Hub for Innovation (BioHub) and it is due to become operational by the end of 2022. It received an additional £2 million investment from Scottish Enterprise in March 2022.

Digital infrastructure projects have been making good progress. The City Network Extension was completed in November 2021, connecting 57 additional sites to the Aberdeen City Council fibre network. Savings from the original business case of Full Fibre Infrastructure have resulted in more Aberdeenshire Council sites connected to dark fibre than originally anticipated. All original sites were connected by March 2022 and an additional site (a new school) to be added once it has been constructed. The Duct Network Extension is also utilising savings from the original business case to extend its route and construction of an additional phase is due to begin in September 2022.

Contribution to economic development: The projects in the Aberdeen City Region Deal will support Aberdeen in its ambition to be an energy transition capital. Significant investment in innovation, digital connectivity and infrastructure will help diversify and transform the region's economy. The latest drawdown figure, as of March 2022, is £128.9 million and projected spend was expected to reach £132.3 million by close of 2021-22.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Inverness and Highland City-Region Deal

Programme description: The Deal aims to drive inclusive economic growth across the region through investment in housing, skills, innovation and entrepreneurship, tourism, transport and digital.

Estimated total investment: £315 million. Scottish Government has committed to investing up to £135 million in the Deal, the UK Government up to £53 million, and the Council and regional partners a further £127 million over 10 years.

How is programme being funded: Capital funded.

Programme delivery timetable: 10 years from January 2017 until January 2027.

Latest programme progress: The deal was signed in January 2017 and is now underway with many projects now in delivery.

The Deal has seen 138 affordable homes already constructed with planning approval for 312 units to date. Eleven assisted living Fit Homes are nearly completion with a further 18 under construction.

The Inverness College UHI Centre for Health & Life Sciences is expected to complete construction in September 2022 and the main construction contract for Inverness Castle was awarded to Bancon Construction in February 2022.

Contribution to economic development: Regional Partners have estimated that the Deal will have the following economic benefits and will:

• Help to rebalance population with the aim of retaining and/or attracting an additional 1,500 young people in the 18-29 age group over the initial 10-year deal period
• Create an additional 1,125 direct jobs as a result of City-Region Deal projects with a further 2,200 additional jobs in the construction sector
• Help to up-skill labour market and contribute to moving towards a high skilled high wage economy, improve productivity and real wages which are estimated to increase by an additional 1.3 per cent and bring an additional £100 million per annum to the regional economy
• Create 6,000 new houses over 20 years of which 1,600 will be affordable homes
• Deliver private sector leverage from house building and through opening up land for commercial development which will see an additional return over a 20-year period of around £800 million being invested in the economy of the city and region

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Edinburgh and South East Scotland City Region Deal

Programme description: The city region has a strong and successful economy on which to build, however there remain a number of issues that need to be addressed. Prosperity and success is not universal across the city region. There are 22.4% of children living in poverty, there is a lack of mid-market and affordable housing and too many people are unable to move on from low wage/low skill jobs. The City Region Deal is addressing these issues and is working to create new economic opportunities, new meaningful new jobs and to reduce inequalities.

Estimated total investment: £1.3 billion. Scottish and UK Governments committed to investing up to £300 million each in the Deal. Regional partners, including six local authorities and region's universities and private sector, will contribute £730 million.

How is programme being funded: Capital funded and revenue funded.

Programme delivery timetable: 15 years from 2018 until 2032.

Latest programme progress: The Deal was signed in August 2018 and is now underway. Since then, the Joint Committee have been steadily signing off business cases for projects within the Deal.

Projects such as the Bayes Centre and those within the Integrated Regional Employment and Skills Programme are already in operation. Construction work is near completion for the Central Borders Innovation Park, Edinburgh Futures Institute and Edinburgh International Data Facility.

The Dunard Centre redesign has been completed and the updated planning application has been approved by City of Edinburgh Council. An updated business case was also approved by the region's Joint Committee.

The City Region's Joint Committee have approved the proposed scheme at Sheriffhall Roundabout, which will provide a grade-separated junction designed to relieve traffic congestion and introduce new active travel facilities for walking and cycling.

Contribution to economic development: The Deal will address inclusion issues, create new economic opportunities and is expected to provide up to 21,000 jobs.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Stirling and Clackmannanshire City Region Deal

Programme description: The Deal will enable the city region to thrive in new and emerging sectors with a highly skilled, flexible workforce, supported by outstanding infrastructure.

Estimated total investment: £214 million. Scottish Government and UK Government each invest £45.1 million (£43.2 million of SG investment is capital). Regional Partners have committed investment of £123.8 million. Scottish Government also making an investment of £5 million in addition to the Deal.

How is programme being funded: Capital funded.

Programme delivery timetable: 10 years.

Latest programme progress: The Deal was signed on 26 February 2020. The Scottish Government is working together with the UK Government and the regional partners towards implementation of the Deal focusing on the transition into project delivery.

The first three capital projects, the first phase of Scotland's International Environment Centre at the University of Stirling, the Walk, Cycle Live Stirling which connects the University and Forth Valley College to the city centre, and the Regional Energy Masterplan are all underway with significant progress anticipated within the next year.

The initial site infrastructure works at Kildean, which were funded by £2.5 million of the additional investment alongside the Deal, is complete with construction works for the wider commercial development onsite currently underway.

Contribution to economic development: The Deal forecasts that 5,000 jobs will be created and £640 million of private investment unlocked.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Tay Cities Region Deal

Programme description: The Deal's themes reflect the Tay Cities Regional Economic Strategy and the focus on inclusion, industry and innovation as well as internationalisation and empowerment.

Estimated total investment: £700 million. Scottish Government and UK Government will each invest £150 million (£128.8 million of Scottish Government investment is capital expenditure). A potential £400 million is being leveraged as a result of Deal funding. Scottish Government are also making an investment of £50 million in addition to the Deal.

How is programme being funded: Capital funded.

Programme delivery timetable: 10 years.

Latest programme progress: The Deal was signed on 17 December 2020. Significant progress has been made with year 1 and 2 projects (2020-21 and 2021-22) with business case approval for over £145 million of the total capital investment and £44 million of this drawn down by regional partners (to end of 2021).

Regional partners are developing a Benefits Realisation Plan to demonstrate the impact of the Deal towards inclusive growth and net zero and building on principles of good practice identified across the Deals programme.

Contribution to economic development: 6,000 jobs and a £400 million of investment unlocked by the Deal (as included within the £700 million total investment).

Contact for public enquiries: cityregiondeals@gov.scot

Programme name: Ayrshire Growth Deal

Programme description: The Deal's vision is to enable Ayrshire to be vibrant, outward looking, confident, attractive to investors and visitors, and for it to make a major contribution to Scotland and the wider UK's growth.

Estimated total investment: £251.5 million. Scottish Government & UK Government will invest £103 million each. Regional partners will invest £45.5 million.

How is programme being funded: Capital funded (£91.5 million). Revenue funded (£11.5 million).

Programme delivery timetable: Scottish & UK Government investment will be over the next 10 years.

Latest programme progress: Full Deal was signed in November 2020 by Scottish Government, UKG, and regional partners.

HALO project completed, set for official opening in spring 2022.

The Scottish Government will continue to work with the partners to further develop the detail of the projects supported through the deal and to maximise inclusive growth opportunities.

Contribution to economic development: It is estimated that the Deal will create 7,000 new jobs and unlock an additional £300 million from the private sector. Scottish Government investment includes £40 million for an Economic Infrastructure Programme which includes innovative projects around engineering, manufacturing and digital automation, £30 million for an Aerospace and Space Programme and £18.5 million for tourism and regeneration.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Borderlands Growth Deal

Programme description: The Borderlands Deal is the first cross-border Deal, delivering across five local authority areas, two in the South of Scotland and three in the North of England. The Deal's ambition is to unlock the region's potential as an economic hub to encourage new business and job opportunities. The Deal involves cross border collaboration recognising the economic and social ties between the south of Scotland and north of England and the desire of regional partners to work together on shared challenges and opportunities.

Estimated total investment: £191 million within the Scottish element of the Deal. Scottish Government will invest £85 million and UK Government will invest £65 million in Scottish deal. Regional partners will invest £41.2 million.

How is programme being funded: Capital funded.

Programme delivery timetable: Scottish Government and UK Government investment will be made over 10 years.

Latest programme progress: Full deal signed in March 2021. Priority themes and areas have been identified for Scottish Government and UK Government investment. They are Enabling Infrastructure, Improving Places, Supporting Business, Innovation and Skills, and Encouraging Green Growth.

Officials continue to work with partners on the development of business cases that will deliver economic inclusive growth across the south.

Contribution to economic development: The Deal aims to deliver green growth and attract new businesses and investment. Improving transport and digital connectivity, delivering skills and innovation and improving places to support their longer-term resilience are key. The ambition is to attract new residents and develop the region's tourism offer and to encourage more visitors capitalising on the region's natural capital. The programme of investment will deliver significant economic benefit for communities and businesses. It is estimated that across the whole Borderlands region, over the programme lifetime (and a further 10 years to capture the benefits), the Borderlands Inclusive Growth Deal will:

• Benefit 1.1 million residents and deliver an additional 5,500 job opportunities
• Attract more than four million extra tourists to the area and improve mobile and digital connections
• Unlock investment in towns across the area and generate around £1.1 billion in GVA (gross value added) for the Borderland's economy
• Tackle the three principle socio-economic challenges of the region by narrowing the productivity gap, increasing the working age population and delivering inclusive growth by addressing digital exclusion, the earnings gap and access to quality jobs and access to education

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Moray Growth Deal

Programme description: The Deal will help drive inclusive economic growth. It will help both retain and attract young people to live and work in area, address gender inequality in employment; and create new high quality jobs and opportunities across Moray.

Estimated total investment: £100.8 million. Scottish Government and the UK Government will both invest £32.5 million each and regional partners will contribute an additional £35.8 million.

How is programme being funded: Capital funded.

Programme delivery timetable: 10 years.

Latest programme progress: The Full Deal was signed on 20 December 2021.

Officials continue to work with regional partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities.

Contribution to economic development: As well as creating high-quality jobs and opportunities across Moray, the Deal will address key growth challenges, including keeping young people in the area to live and work, and addressing gender imbalances in key sectors of the economy to unlock future potential.

The vision for the Deal is built on four pillars - Connections; Business Support, Skills and Employability; Moray the Place/Brand; and Moray's Priority Business Sectors that will unlock investment and drive inclusive and sustainable economic growth across the area.

Regional Partners estimate that economic benefits arising from the Deal will include the following:

• Directly and indirectly create over 3,500 jobs associated with the economic benefits accrued from growth deal projects. Of these, 450 jobs will be directly created as part of growth deal project delivery
• Attract an additional 50,000 tourists and construct over 300 affordable new homes
• Support 450 businesses to scale up to increase the value of the Moray economy by £82 million and create new and improve existing facilities for businesses
• Create an enhanced culture and leisure offering for local people to make Moray a more attractive place to live and work

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Argyll and Bute Growth Deal

Programme description: The Deal will focus on strengthening communities and on connecting Argyll and Bute's high value business sectors to national and international business markets.

Estimated total investment: £50 million. Scottish Government and the UK Government will invest £25 million each.

How is programme being funded: Capital funded.

Programme delivery timetable: 10 years.

Latest programme progress: The Heads of Terms agreement was signed on 11 February 2021. The Scottish Government continue to work with partners to further develop the detail of the projects to be supported and to maximise inclusive growth opportunities

Contribution to economic development: The Deal is at Head of Terms agreement and its economic development benefits and targets will be confirmed at full deal stage. It has however indicated that investment will be targeted across three key drivers:

• Connecting high value business sectors with national and international business markets
• Attracting additional skills, training and learning opportunities, new residents, visitors and businesses
• Growing by doing more of what works; making more of Argyll and Bute's natural and built resources

The Deal aims to target specific issues facing the region, in particular, Argyll and Bute Council have cited population forecasts estimating that by 2027, the region will need another 10,000 working-age people to keep businesses running and provide public services.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Islands Growth Deal

Programme description: The Deal will invest in the priority themes identified by the Islands Growth Deal partners; leading the way to a low carbon future, supporting growth and future industries, and creating thriving, sustainable communities.

Estimated total investment: £335 million. Scottish Government and the UK Government will invest £50 million each and regional partners hope to leverage an additional £235 million.

How is programme being funded: Mainly capital funded but with some revenue not yet agreed.

Programme delivery timetable: 10 years.

Latest programme progress: The Heads of Terms agreement was signed on 17 March 2021. The Scottish Government will continue to work with the partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities

Contribution to economic development: The Deal has three broad themes along which its objectives are planned: leading the way to a low carbon future; supporting growth and future industries; and building thriving sustainable communities.

Regional partners anticipate that the Deal is likely to create over 1,300 sustainable jobs across the three island groups aimed at retaining and attracting young talent.

Contact for public enquiries: email: cityregiondeals@gov.scot

Programme name: Falkirk Growth Deal

Programme description: The Growth Deal aims to channel investment behind two pillars of Innovative Industry and Creating Great Places, each of which includes a series of interlinked projects.

Estimated total investment: £140.8 million. Scottish Government will invest £50 million and the UK Government will invest £40 million with a contribution of £50.8 million from the local partners will result in a Growth Deal package worth up to £140.8 million for the region.

How is programme being funded: Capital and revenue funded.

Programme delivery timetable: 10 years.

Latest programme progress: The Heads of Terms were signed in December 2021. The Scottish Government will continue to work with partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities

Contribution to economic development: Falkirk partners predict that the proposed interventions will generate around £802 million of GVA uplift, approximately deliver an additional 2,000 jobs in the region and attract in excess of £1 billion of private investment.

Contact for public enquiries: email: cityregiondeals@gov.scot