NGBS: Programme 1
Period report

INFRASTRUCTURE ACTION PLAN PROGRAMME BOARD

DIGITAL DIRECTORATE

INFRASTRUCTURE ACTION PLAN: STEP CHANGE 2015

BOARD – MEETING No6

Period Report to the infrastructure action plan portfolio board and step change 2015 programme board

Reporting Period: JUNE/JULY 2012

Report produced by: Lesley Stewart

Report authorised by:Colin Cook

Date: 06 July 2012

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CONTENTS
Infrastructure Action Plan Portfolio Board
Current Issues and Priorities (including changes to key assumptions, constraints and risks, and deviations from key milestones)
Step Change 2015
Current Issues and Priorities (including changes to key assumptions, constraints and risks, and deviations from key milestones)
Progress Since Last Month
Plan for this Month
Programme Milestones
High Level Financial Summary

Infrastructure Action Plan Portfolio Board

CURRENT ISSUES AND PRIORITIES

Overall

Gateway Level 0 Review due to commence in August 2012. Papers presented to the July meeting aim to clarify Governance arrangements that have developed over the past few months

Brief being developed through the Communications Strategy Group to address a range of branding and communication issues. These include the development of a participation brand / campaign as part of Chose Digital First, the related branding of demand stimulation activities and how best to bring overall branding coherence to the digital agenda.

Step Change 2015

Process of formal engagement with Local Authorities. Issues relating to this process are to be discussed separately by the Step Change 2015 Programme Board at this meeting.

Financial modelling work on coverage / speed scenarios will be completed this month. An agreement will be required via the Political Oversight Group on the nature of the “common level” of coverage discussed at the Extraordinary meeting of the IAAPB

State Aid arrangements through BDUK umbrella agreement have yet to be finalised and is a growing risk to programme timescales. This further complicates issues around funding profiles, with a majority of the £32 million of funding announced recently by BDUK notionally allocated to this financial year

World Class 2020

Development work with cities on Urban Broadband Fund proposals and the Scottish Cities Alliance on potential city collaborations

Requirement to advance thinking on future requirements from EU funding given potential restructuring of such funds

Demonstrating Digital

Proposal on way forward with Community Broadband Fund to be discussed at meeting. Programme documentation, including governance arrangements to follow agreement to this recommendation. Potential to announce the fund at the Skye Cabinet 23/24 July.

4. Choose Digital First

Status paper to be developed for the next Portfolio Board meeting. This will address governance issues relating to the cross over between demand stimulation work pertaining to infrastructure investment and wider strategy work to promote business and consumer participation.

Step Change 2015 Programme Board

CURRENT ISSUES AND PRIORITIES

Additional issues to those raided at Portfolio Board level

Highlands and Islands Project

Resolution of discussions with Crown Estates re Subsea cable seabed rentals

Completion of Independent Project Review (Gateway Review equivalent)

Completion of initial State Aid documentation for submission under BDUK umbrella arrangements

Rest of Scotland Project

Pressure on timescale to secure appropriate internal / external resource to provide legal and technical advice and lead demand stimulation work

Preparation for Gateway Review given Review team’s intent to focus specifically on this programme as part of its work

Submission of major project notification to EU for ERDF funds

Commencing the Open Market Review

Progress Last Month

Overall

Additional £32M funding confirmed from BDUK

Highlands and Islands Project

Public announcement of £120m funding allocation

Issue of Invitation to Submit Detailed Solutions to BT

Publication of State Aid Public Consultation document

Rest of Scotland Project

Programme Governance documentation finalised

Local Authority engagement letters issued

Agreed approach to Gateway Review

Plans for Next Month

Overall

Seek Political Oversight Groupmeeting to agree allocation methodology and common level of coverage.

Highlands and Islands Project

Review BT response to ISDS

Progress drafting of T&Cs

Discussion with Cornwall re Crown Estate negotiations and project implementation

Implementation of actions arising from review of resources

Rest of Scotland Project

Commence Local Authority engagement process

Procure a range of specialist advisors

Start the State Aid and Major Project Notification documents

Start preparation of tender documents

Milestone Review

Milestone / Target Date / Status / Comments
HIE – competitive dialogue session / w/c 2 March / Complete
IAP Programme Initiation Document / Mid March 2012 / Complete / Agreed subject to drafting changes at meeting on 7 March 2012
Scope of RoS procurement plan –SPSN in or out / 29 March 2012 / Complete / CSC-DS agreed on 18 April
Cost modelling / End March 2012 / Amber / Additional cost modelling carried out for 3 separate coverage scenarios and presented to Programme Board on 31 May 2012. To be referred to Political Oversight Group for consideration
BDUK funding / End March 2012 / Complete / Decision on additional BDUK funding confirmed 8 June 2012 – additional £32 million allocated.
IAP Strategic Outline Case / End March 2012 / Complete / Drafting comments provided by IIAPPB at meeting on 7 March 2012
RoS -Procurement Plan / End March 2012 / Complete
RoS -Agree national and local government responsibilities / End March 2012 / Complete / Procurement Plan drafted incorporating input from LG colleagues to ensure Procurement Plan reflected an agreed position. Procurement plan subsequently published on 25 May 2012.
IIAPPB / 10 April 2012
CSC-DS / 18 April 2012
HIE – Competitive dialogue with BT / 26 April / Complete / Detailed solutions
RoS - Procurement Plan Final / May 2012 / Complete / Procurement plan for roS published on 25 May 2012
HIE Receive Detailed Solution Submission / 23 July 2012 / Amber
HIE – Issue Request for Final Tender / 17 August2012 / Amber
IIAPPB / 11 May / Complete
HIE – Public Consultation / 09 July / Consultation period will run for one month
RoS - Gateway Review - Start / May 2012 / Green / Gateway assessment meeting confirming Gateway Review approach and remit held on 22 May
Consultancy support (including analytical and technical support) / June 2012 / Amber / Working with legal advisers to determine support available internally. Full resources required as soon as possible.
IAPPB / 15 June 2012 / Green
IAPPB / 13 July 2012 / Green
RoS - Open Market Consultation / July 2012 / Green
HIE – Preferred Bidder Stage / 7 September 2012 / Green
Gateway 0 & 1 / July 2012 / Green
HIE – contract stage / September 2012 / Finalising T&Cs, final bidder clarifications and State Aid notification.
State Aid Notification / Submitted to EC by August 2012 / Amber
ERDF funding / ERDF Process to Start by August 2012 / Green / EU funding requires notification of major project status. This will not be in place before contract awarded.
Outline Business Case / August 2012 / Green
Gateway 2 / August 2012 / Green / Outline business case and tender documentation
IAPPB / TBA / Green / Date to be agreed at IAPPB on 13 July in order to fit with H&I Project timetable
HIE – Contract Signature / 28 September 2012 / Green
Tender documentation / September 2012 / Green
RoS - Commence Procurement / September 2012 / Green
HIE – Delivery of Service Improvements / January 2013 / Green
RoS - Tender Process / March/ May 2013 / Green
Full Business Case / May 2013 / Green
RoS - Supplier Selection / June 2013 / Green
Gateway 3 / July 2013 / Green
RoS - Contract Award & Standstill / First half of 2013 / Green
RoS - Implementation / Ongoing / Green
IAP - Stakeholder engagement / Ongoing / Green / Separate engagement strategy in development

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High Level Financial Summary

Available funding – source and levels
Source / 2012/13 / 2013/14 / 2014/15 / Post- 2014/15 / TOTAL
Spending Review (21/09/11) / 8 / 12 / 15 / 15[1] / 50
Barnet Consequentials:
Digital (08/02/12) / 1.5 / 14.4 / 12.3 / 0 / 28.2
ERDF[2] / tbc / tbc / Tbc / tbc / 25.5
Barnet Consequentials:
Local Authority (Digital) (08/02/12) / 5 / 14.8 / 20.2 / 0 / 40
Local Authorities (SBC & DGC)[3] / 0 / 0 / 7 / 14 / 21
Local Authorities (Aberdeenshire)[4] / tbc / tbc / Tbc / tbc / 18
BDUK[5] / tbc / tbc / Tbc / tbc[6] / 100.8
HIE[7] / tbc / tbc / Tbc / 0 / 4.5
TOTAL / 288

[1] £15 million of the Next Generation Digital Fund is allocated for 2015/16.

[2] Up to £25.5 million will be made available in the current programming period (£5.5 million Highlands and Islands and £20 million Lowlands and Uplands). Funding must be committed by December 2013 and spent within two years – i.e. December 2015. Therefore it is possible that a portion of this may be spent within 2015/16. Profiling will be dependent on the procurement plan and process.

[3] This is the indicative profiling from SOSA’s bid submission to SG in September 2011, however the actual profiling may change.

[4] Aberdeenshire Council has committed £18 million over four years from 2012/13. Profiling will be dependent on the procurement plan and process. An additional £2 million has separately been committed by Aberdeen City Council which is for city wifi projects. As this does not constitute funding for rural broadband (“white” areas), this has not been included in this table.

[5] Profiling of the £100.8 million BDUK funds has yet to be agreed with DCMS.

[6] UK Government has stated that an additional £300 million funding (UK-wide) may be made available in the next (UK) Spending Review period. However this is unconfirmed at UK level as is any indication around potential Scottish allocation.

[7] HIE has committed £4.5 million funding to the HIE project (when added to the Highlands and Islands ERDF funding of £5.5 million, this matches the BDUK allocation of £10 million [itself part of the Scottish BDUK allocation of £100.8 million]). Profiling will be dependent on the procurement plan and process.