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

Sector: Inclusion and growth

Programme name: Stornoway Growth Accelerator

Programme description: Growth Accelerator payments to the Stornoway Port Authority will help underpin a game-changing infrastructure project. This will secure the sustainable future of the Hebrides by building the enabling infrastructure within Arnish Low Carbon & Renewables Enterprise Area, to provide catalyst for significant further economic and environmental development.

Estimated total investment: £57.25 million.

How is programme being funded: The Scottish Government investment is £33.7 million of revenue funded Growth Accelerator payments over 25 years, subject to achievement of agreed outcomes plus £1.84 million direct grant for works carried out in 2021-22.

Programme delivery timetable: Timetable delayed due to inflated COVID-19 related construction costs. Contract has now been awarded with completion of construction targeted for December 2023.

Latest programme progress: Initial tender process resulted in higher than expected bids due to COVID-19 related inflationary impact on costs and the war in Ukraine led to further steel price rises. These have now been subsumed within an adjusted contract price with the risk for future price rises carried by the contractor. This adjusted contract was awarded by Stornoway Port Authority on 31 March 2022.

Contribution to economic development: This project contributes to economic development in the Western Isles across a range of sectors including marine tourism (through cruise traffic), supply chain work for offshore renewables generated by the ScotWind leasing round and aquaculture.

Contact for public enquiries: Marine Planning and Policy email: Mike.Palmer@gov.scot / Marine Scotland email: Iain.Jeynes@gov.scot

Programme name: Agricultural Support Programme

Programme description: Agricultural funding to support legacy payments under European Commission Scottish Rural Development Programme (SRDP) schemes, such as the Agri-Environment Climate Scheme (AECS 2021), Improving Public Access (IPA), Forestry, Crofting Agricultural Grant Scheme (CAGS), Food Processing Marketing and Co-operation (FPMC), and LEADER.

A Future Framework that provides support to deliver climate mitigation and adaptation, nature restoration and high quality food production is being co-developed with the Agriculture Reform Implementation Oversight Board (ARIOB) and the work of the ARIOB will support a consultation in 2022 to inform the introduction of a Scottish Agriculture Bill in 2023.

Estimated total investment: To be confirmed.

How is programme being funded: HM Treasury ring fenced funding. However, no guarantee beyond the end of the UK parliament sitting

Programme delivery timetable: 2021-22 to 2024-25.

Latest programme progress: Development of a coherent programme structure will monitor and evaluate measures and outcomes against current EU regulations and the domestic SRDP programme, legally committed targets and the National Performance Framework.

Contribution to economic development: To be confirmed.

Contact for public enquiries: email: Michael.Wilson2@gov.scot

Programme name: National Islands Plan – Islands Programme

Programme description: The Islands Programme (IP) investment supports delivery of the Scottish Government's National Islands Plan (NIP).

Estimated total investment: £30 million.

How is programme being funded: Infrastructure Investment Fund capital finance.

Programme delivery timetable: 2021-22 to 2025-26.

Latest programme progress: £9.5 million was spent against the IP in 2021-22 and £4 million has been committed to 2022-23 IP delivery. The 2021-22 investment was delivered through the following three key funding streams:

Island Communities Fund (ICF) - £2.6 million (£2 million IP capital)

• The £2 million ICF provided investment for community-led projects aligned to Community Wealth Building (CWB) and supporting employment, community resilience and a just transition to net zero
• The fund was increased utilising finance from the Sustainable Action Fund.
• Collectively, ICF tranche 1 and 2 delivered a £2.6 million commitment through 35 island-based community groups and businesses that provided direct support across 55 islands, each awarded grants of up to £150,000 each

Healthy Islands Fund (HIF) - £1.4 million (£1.2 million IP capital)

• The £1.4 million HIF, which included a £1.2 million capital investment supported community-led projects that influenced healthier lifestyles and facilitated cultural, behavioural, environmental, and/or structural change at a local 'island-level'
• The fund delivered an 'on-island' investment of £1.4 million through 56 projects spread across 35 islands

Infrastructure Investment Fund (IIF) - £6.3 million

• The £6.3 million IIF was created to sustain, enhance and develop transformational and critical infrastructure projects based on local priorities
• This capital investment was delivered in collaboration with Scottish Futures Trust, Highlands and Islands Enterprise and local authority partners
• Key projects included £1.3 million committed to the Kerrera Track upgrade and the £750k Fair Isle Bird Observatory rebuild
• The remaining £5 million was allocated directly to the six local authorities with inhabited islands against specific delivery criteria

The 2022-23 round of the Islands Programme was launched on 21 March 2022. For 2022-23 onwards, the IP will be delivered in partnership with local government and open to applications from the six local authorities with inhabited islands. It will follow a competitive process in partnership with the local authorities aligned with the Regeneration Capital Grant Fund (RCGF) mechanism and structure

Contribution to economic development: The IP ensures delivery of the NIP, which comprises 13 strategic objectives that are critical to improving the quality of life and economic development of Scotland's islands. Created in partnership with communities and informed by our learning of how islands have responded and adapted to COVID-19, the five-year NIP has actions that set out how we will tackle population decline and fuel poverty; and promote, protect and enhance environmental wellbeing; health and wellbeing; community empowerment; transport services; digital connectivity; and biosecurity – through actions linked to the sustainable economic development strategic objective.

Contact for public enquiries: email: info@islandsteam.scot