Infrastructure Investment Plan 2021-22 to 2025-26: Programme pipeline update (September 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's Common Agriculture Policy (CAP) and Scottish Rural Development Programme (SRDP). The Agriculture (Retained EU Law and Data) (Scotland) Act 2020 enabled the continuation of CAP schemes from 2021, while future agriculture policy is being co-developed.

Estimated total investment: Up to £220 million.

How is programme being funded: Remaining EU funding until exhausted and majority now provided by HM Treasury as ring-fenced replacement EU funding but allocations on an annual basis and only guaranteed for this UK Parliamentary term.

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

Latest programme progress: The Scottish Government's Vision for Agriculture was published on 2 March 2022 and a consultation on proposals for a new Bill, "Delivering our Vision for Scottish Agriculture" launched on 29 August 2022, and will inform a new Agriculture Bill to be introduced in 2023.

Alongside the continuation of CAP and SRDP schemes the National Test Programme and Agricultural Transformation Fund seek to support farmers and crofters to improve their knowledge of current environmental performance and efficiency and adopt appropriate measures alongside testing the conditions or activities that could be applied to future support.

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: The Islands Programme is investing £4.45 million of capital funding in the current financial year to ensure delivery of the National Islands Plan, by supporting a range of areas, including tourism, infrastructure, innovation, energy transition and skills - informed by our learning of how island communities have responded and adapted to COVID-19.

The 2022-23 round of the Programme was launched on 21 March 2022. For 2022-23 onwards, the IP is being delivered in partnership with local government and the Scottish Futures Trust and was open to applications from the six local authorities with inhabited islands. It followed a competitive process in partnership with the local authorities aligned with the Regeneration Capital Grant Fund (RCGF) mechanism and structure. This funding is complemented by ongoing planned investment which is designed to support those living on Scotland's islands and will involve communities in the decisions on how and where investments are made.

15 applications were received in total and individually ranged from £72k to £1.5 million - 11 projects were approved to receive £4.45 million of Islands Programme funding in the current financial year.

This funding is benefitting 31 islands across the six island authorities. Successful applications include projects directly supporting population retention and growth, new facilities to deliver services helping to alleviate child poverty, innovative circular economy solutions, measures to address climate change impacts, development of digital and community hubs, management of tourism impacts and the creation of new facilities, iconic heritage projects, and support for key local services.

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