Scottish Government Investment Group Progress of Interventions to Meet the Needs on the Development List - Report Q3 2023/24
Sets out how Scottish Water is progressing in developing interventions to address the needs on the ‘Development List’ up to the end of December 2023 (Q3 2023/24).
4. Progress of the development of interventions with Level 1 and 2 appraisals
The purpose of this section is to provide:
- An overview of the progress of interventions in Q3 that are subject to Level 1 and 2 appraisals[1]
- Highlights from significant Level 1 or 2 project investment appraisals completed in the last quarter.
- A review of lessons learnt from the delivery of PIA forecast in the last quarter and a look ahead to the next quarter.
- The full list of interventions with Level 1 and 2 appraisals, with an indication of the anticipated timing, is shown in Appendix C, provided as a supporting document.
Quarterly review of progress of appraisals
Good progress has been made in project level decision making within Q3:
- 12 Project Investment Appraisal stages were completed within the quarter. This includes the additions to the forecast (7 or 17% of the initial demand).
- 12 of 12 projects progressed through first time at IAG/IG or through offline approval. These projects had a value of c.£221m.
- 3 Project Investment Appraisal documents have been shared with all sector stakeholders.
Highlights from project investment appraisals completed within the quarter are included in Table 1.
| Project | Stage | Date | Summary |
|---|---|---|---|
| Penicuik WWTW Growth | Stage 3a | Nov 2023 | Penicuik WwTW is located approximately 10 miles south of Edinburgh, to the east of the town of Penicuik in Midlothian. This is a Sequence Batch Reactor (SBR) based WwTW which treats the wastewater from the Penicuik catchment where the PE declared in AR23 was 13,436. The majority (97%) of the current PE is from domestic households, with the remaining 3% coming from tourism, trade and non-domestic households. The secondary treated sewage effluent discharges to the North Esk River which has a ‘Poor’ status on the SEPA Water Environment Hub. The assessed capacity at Penicuik is 7,561 PE. The current PE based on AR23 is 13,436 and the future PE is predicted to be 14,221. Hence, the WwTW is incapable of handling existing loads and any future loads. As a result, the WwTW is failing the CAR licence, this option cannot be phased into SR27 as a result of this. I t was agreed to take two options forward for further assessment in the Integrated Wedge; Option 2a(i) SBR (Rectangular) and Option 5 BioMAG. The BioMAG option introduces an innovative technology with lower whole life carbon and is recommended to be progressed through the integrated wedge to firm up the cost differences between the two options and provide a more robust estimate to base the selection of a preferred option for construction. |
| Perth Growth Strategy - Water | Stage 4 | Dec 2023 | Perth and Kinross Council have identified Perth as a centre for major housing and business growth. This development is already well underway to the west and north of Perth as a series of identified development packages. The initial phase consists of 3,000 residential units, a secondary school (with a capacity of 1,800) and 24 hectares of commercial land use. This growth will continue at an approximately linear rate through to 2045 with a total of 11,800 residential units anticipated. The preferred option includes the supply of new developments via a new trunk main from Perth WTW to new service reservoir sized at 6Ml with additional trunk main from new service reservoir to Luncarty network with provision made for storage increases to 12Ml to meet demand from full development and maintain resilience for all customers (Figure 1). Some minor changes to the scope have occurred between Stage 3B and Stage 4. These minor changes are related to the final trunk main route to satisfy landowner and developer requirements. Pump replacement at Gowans Terrace has been added to meet hydraulic requirements. |
A review of lessons learnt from the delivery of PIA forecast in the last quarter.
An overview of the appraisals at Stages 2/3a/3b/4 that were forecast to be delivered during Q3 2023/24 and the appraisals delivered is shown in Appendix C (provided as a supporting document).
The purpose of the table in Appendix C is to provide internal visibility to enable forward planning for Level 1 and 2 needs and to ensure enough work is being appraised to support the investment programme. It is not intended to be a fixed set of dates and the dates presented are the earliest that those will be achieved.
There are three main themes driving the missed forecasts:
- Scope and costing. This affected 27% (11) of the initial projects. For some projects this is as a result of different options or elements of options being considered and for some it is due to awaiting estimates from Delivery Vehicles.
- Prioritisation / workload. This affected 15% (6) of the forecast projects which had forecasts adjusted to the following quarters in line with the dynamic programme. Some of the projects have been impacted by staff sickness and availability or have been reprioritised. This reprioritisation is reflected in the number of additions which were not originally forecast in this period but have been brought forward.
- Removed from L2 requirement. This has affected 12% (5) of the forecast projects. These projects have been removed as their costs have dropped below £3m. This includes Torwood growth which where a smaller solution will take flows into an adjacent catchment where they will be included as part of the wider East Stirling Villages project.
| Appraisal Stage | Water Portfolio – Oct-23 forecast | Water Portfolio – Jan-24 actual | Wastewater Portfolio – Oct-23 forecast | Wastewater Portfolio – Jan-24 actual | CE&FS/other Portfolio – Oct-23 forecast | CE&FS/other Portfolio – Jan-24 actual |
|---|---|---|---|---|---|---|
| Stage 2: Strategic Optioneering Review (G40) | 5 | 3 | 2 | 1 | 0 | 0 |
| Stage 3a: Outline Investment Appraisal (G50) | 4 | 0 | 9 | 2 | 0 | 0 |
| Stage 3b: Outline Project Appraisal (G70) | 3 | 1 | 4 | 2 | 0 | 0 |
| Stage 4: Project Appraisal for Commitment (G80/90) | 4 | 2 | 3 | 1 | 0 | 0 |
Projects reforecast by 12 months
There are no additional projects reforecast by >12 months this quarter. However, reviews of prioritisation lists for Flooding, Growth and Water Quality are being undertaken which will lead to the reforecast of some projects in these areas.
Contact
Email: waterindustry@gov.scot
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