Written Question · S3W-27290 · Session 3
Further to its progress report of 30 June 2009 to the Public Audit Committee on major capital projects with a value in excess of £50 millio…
The question
To ask the Scottish Executive, further to its progress report of 30 June 2009 to the Public Audit Committee on major capital projects with a value in excess of £50 million, how each of the (a) estimated capital values and (b) timescales of the projects compares with the original project cost and timescale estimates.
The answer
The 30 June 2009 progress report to the Public Audit Committee provided details on 36 major capital projects. The capital projects outlined in the progress report are due for completion between 2010-11 and 2016-17. Capital budgets for 2011-12 and subsequent years are dependent on the outcome of future Spending Reviews.
The total original cost estimate for all projects (based, where applicable, on median cost estimates) was £10.8 billion. The total estimated cost for the same projects as at 30 June 2009 had reduced to £9.7 billion.
Cost estimates for individual projects may rise or fall for a number of reasons, including: changes to the scope of the project; incurring unanticipated or additional costs for preparatory works; costs arising from unavoidable delay to projects, and increases in input costs and construction prices.
Timescale estimates for individual projects may be extended or shortened for a number of reasons, including: changes to the scope of the project; unanticipated or unavoidable delays to construction; unanticipated or unavoidable delays in the procurement process, and the impact of considerations around affordability for the procuring authority.
The following table provides a comparison of original estimates of project costs and timescales with the estimates outlined in the progress report of 30 June 2009.
Comparison of Original Estimates of Project Costs and Timescales with the Estimates Outlined in the Progress Report of 30 June 2009
Project Title
|
Forth Replacement Crossing
| The original estimated capital value was £3.2bn- £4.2bn. The revised estimate of £1.7bn- £2.3bn reflects a value engineered scheme (the Managed Crossing Strategy) developed for and approved by the Scottish Ministers prior to announcing to Parliament on 10 December 2008. The original estimated cost was based upon the Strategic Business Case from the Ministerial decision in December 2007.
The original timescale to completion was 2016-17 and this remains unchanged.
A90 Aberdeen Western Peripheral Route
| The original estimated capital value was £295m-£395m and this remains unchanged. The original estimated cost was based on when the preferred route was announced on 1 December 2005. The cost estimate will be reviewed and updated once the statutory procedures are completed and prior to commencement of procurement.
The original timescale to completion was 2011 with the revised estimate being 2012-13. As the project developed it became clear that land searches required to complete the draft Compulsory Purchase Orders were more complex than anticipated. This along with new procedures for confirming Orders within the Transport and Works (Scotland) Act 2007 led to re-assessment of the estimated scheme completion.
M8 Associated Network Improvements
| The original estimated capital value was £43m-£57m and this was unchanged as at 30 June 2009. The range of options considered was at 2004 prices and inflated to an outturn cost.
The original timescale to completion was to suit M8 programme with the revised estimate being 2013-14. We have reviewed the wider M8 programme and have confidence that this element of works can be completed earlier.
M8 Baillieston
The total original cost estimate for all projects (based, where applicable, on median cost estimates) was £10.8 billion. The total estimated cost for the same projects as at 30 June 2009 had reduced to £9.7 billion.
Cost estimates for individual projects may rise or fall for a number of reasons, including: changes to the scope of the project; incurring unanticipated or additional costs for preparatory works; costs arising from unavoidable delay to projects, and increases in input costs and construction prices.
Timescale estimates for individual projects may be extended or shortened for a number of reasons, including: changes to the scope of the project; unanticipated or unavoidable delays to construction; unanticipated or unavoidable delays in the procurement process, and the impact of considerations around affordability for the procuring authority.
The following table provides a comparison of original estimates of project costs and timescales with the estimates outlined in the progress report of 30 June 2009.
Comparison of Original Estimates of Project Costs and Timescales with the Estimates Outlined in the Progress Report of 30 June 2009
Project Title
|
Forth Replacement Crossing
| The original estimated capital value was £3.2bn- £4.2bn. The revised estimate of £1.7bn- £2.3bn reflects a value engineered scheme (the Managed Crossing Strategy) developed for and approved by the Scottish Ministers prior to announcing to Parliament on 10 December 2008. The original estimated cost was based upon the Strategic Business Case from the Ministerial decision in December 2007.
The original timescale to completion was 2016-17 and this remains unchanged.
A90 Aberdeen Western Peripheral Route
| The original estimated capital value was £295m-£395m and this remains unchanged. The original estimated cost was based on when the preferred route was announced on 1 December 2005. The cost estimate will be reviewed and updated once the statutory procedures are completed and prior to commencement of procurement.
The original timescale to completion was 2011 with the revised estimate being 2012-13. As the project developed it became clear that land searches required to complete the draft Compulsory Purchase Orders were more complex than anticipated. This along with new procedures for confirming Orders within the Transport and Works (Scotland) Act 2007 led to re-assessment of the estimated scheme completion.
M8 Associated Network Improvements
| The original estimated capital value was £43m-£57m and this was unchanged as at 30 June 2009. The range of options considered was at 2004 prices and inflated to an outturn cost.
The original timescale to completion was to suit M8 programme with the revised estimate being 2013-14. We have reviewed the wider M8 programme and have confidence that this element of works can be completed earlier.
M8 Baillieston
In the Official Report
No contribution in the Official Report cites S3W-27290 by reference.