Infrastructure Investment Plan 2021-22 to 2025-26: programme pipeline update - March 2023
This pipeline provides information relating to key major infrastructure programmes with an investment of £20 million or more included at Annex D of our Infrastructure Investment Plan, published in February 2021.
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 was delayed due to inflated COVID-19 related construction costs. Contract has been awarded with completion of construction targeted for December 2023.
Latest programme progress: The project has been progressing on schedule and on budget and is due to complete in December 2023. Parallel work is ongoing to ensure maximisation of benefits and implementation of any associated island infrastructure developments required to respond to the increased economic activity expected from the new terminal.
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: email: Emma.Kinloch@gov.scot / Kate.Bryson@gov.scot
Programme name: Agricultural Reform Programme
Programme description: The programme will deliver the ambitions set out in the Scottish Government's Vision for Agriculture, published in March 2022 and brings together work including the Route Map, Scottish Agriculture Bill, Future Support Framework, Agriculture Reform Implementation Oversight Board (ARIOB), and the National Test Programme (NTP). ARP will ensure Scotland will have a support framework that delivers high quality food production, climate mitigation and adaptation, and nature restoration through a just transition.
Estimated total investment: Up to £220 million.
How is programme being funded: Remaining European Union (EU) Common Agricultural Policy (CAP) funding will be exhausted during 2023-24. EU exit means we no longer have long-term certainty of funding. HM Treasury have provided yearly allocations for the current UK Parliamentary term. There is no funding commitment from 2025.
Programme delivery timetable: 2021-22 to 2026-27.
Latest programme progress: An Agricultural Reform Route Map was published in February 2023 which sets out the timescales for information and interaction with the agricultural industry following the Parliamentary Statement on "Pathway to Reform – a Phased Transition for Implementation of Reformed Rural Support" in November 2022.
As set out in the ARP Route Map, by the end of June 2023 we will have published the public consultation and provided the sector with more information around the conditions that will be applied in 2025. We will also be using this opportunity to update and refine the route map to allow stakeholders to plan for the future and understand when further information will be made available.
Existing CAP and SRDP schemes are being managed during a period of budgetary pressure and some uncertainty. Capital funding is being prioritised to schemes that deliver towards key Scottish Government outcomes on climate and nature restoration, alongside crofting.
Contribution to economic development: Projects provide grant funding to businesses for purposes including to develop or create food processing facilities, run co-operative ventures to ensure more value is retained by producers, to improve supply-chain efficiency, and to enable investment in equipment to increase productivity and reduce environmental impact.
Contact for public enquiries: email: www.ruralpayments.org
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: £25.8 million.
How is programme being funded: Infrastructure Investment Fund capital finance.
Programme delivery timetable: 2021-22 to 2025-26.
Latest programme progress: As announced on 31 January 2023, the Scottish Government is investing £4 million in 2023-24 through the Islands programme to ensure ongoing delivery of the National Islands Plan, by supporting a range of areas, including tourism, infrastructure, innovation, energy transition and skills.
Delivery through a simplified and streamlined bid model for 2023-24 allows the Islands Programme to continue to operate as a strategic programme to help improve the outcomes for island communities, whilst delivering on the 13 Strategic Objectives of the National Islands Plan. The continuation of local authorities as lead applicants builds partnerships across communities, the public, private and third sector, whilst delivering national strategy and policy across our islands. The Scottish Futures Trust will continue as delivery partners for the Islands Programme (IP) and provide additional support for our local authority partners.
It is important to note that Scottish Government's commitment to the islands does not just include investment through the IP. Support for our island economy is mainstreamed and so sectoral support lies across many areas - all of which contribute to the Wellbeing Economy and through other funding that we have committed across Scotland.
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
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