Agenda item

Report enclosed.

The committee considered the latest Investment Fund report (agenda item 13).

 

The Chair highlighted the following points:

 

·         The report proposed Investment Fund scheme assessment criteria as shown in appendix 2.

·         The report also sought approval of an overall funding envelope (comprising the Investment Fund and the Transforming Cities Fund) of £350m for the period up to March 2023.

·         The proposals would enable a number of key projects for the region to be taken forward to the next stage of development, including Business Cases for:

-       CribbsPatchway cycle links package

-       The Realising Talent early intervention and support project for people not in education or training

-       The South West Institute of Future Technologies project

-       CribbsPatchway MetroBus extension

-       Strategic Park and Ride feasibility funding for Yate.

·         The report also sought an allocation of £20m to Quantum Technologies Innovation Centre+ subject to Full Business Case and due diligence.

·         The report also included a number of other allocations to take important projects forward. In overall terms, the proposals in the report reflected the Combined Authority’s ambition to drive forward projects which would bring significant positive improvements and impacts for the region’s residents.

 

The Chair also advised that following discussion with all the authorities, there was a proposed amendment to recommendation 16 of the report.

 

Cllr Savage moved, seconded by Cllr Romero:

That recommendation 16 be amended to read:

“To allocate £500,000 to develop Outline Business Cases for Strategic Park and Ride subject to approval of a Feasibility and Development Funding Application; and to earmark £3.5m for the delivery of Yate park and ride subject to completion of Business Cases as required.”

 

The Chair also advised that following discussion with all the authorities, there was a further amendment to add an additional recommendation 24 to the report.

 

Cllr Romero moved, seconded by Cllr Savage:

That an additional recommendation 24 be added as follows:

“To approve that the first £20m of any drawdown against the Land Acquisition Fund, subject to the level of funding available, is reserved for strategic schemes within Bath & North East Somerset within the current financial year.”

 

 

In relation to recommendation 7, Cllr Romero asked for further detail and clarification about the due diligence that would take place in terms of the proposed allocation of £20m to Quantum Technologies Innovation Centre+ project and the underwriting of a further £14.974m subject to Full Business Case and necessary due diligence.

 

In response, the Combined Authority S151 finance officer advised that the following points would need to be fully addressed in terms of the due diligence to be undertaken for this project:

 

(a)  There will be full consideration of state aid implications given the level of funding requested by a private organisation - to include assessment of the project outputs against priorities for the region and impact of funding for the region as a whole.

(b)  A value for money assessment of the outputs from the proposal will be undertaken to confirm that funding at the level requested is reasonable.

(c)   Confirmation will need to be provided that all relevant permissions for the scheme have been obtained.

(d)  There will be consideration of all legal agreements between Bristol City Council and University of Bristol which will include an independent surveyors report confirming that the best price for the site has been achieved, and that other avenues for funding have been conscientiously considered by all parties.

(e)  Any land holdings and /or capital receipts from either the University or Bristol City Council will need to have been fully accounted for, and considered, when determining the final proposed funding figure.

 

Mayor Rees welcomed the package of proposals that were being taken forward through this report, which would drive inclusive and sustainable growth across the region.  He drew particular attention to the importance of the Quantum Technologies Innovation Centre+ as a key part of redeveloping the Cattle Market Road site near Temple Meads railway station, pointing out that Homes England had highlighted the significance of the site as an exciting regional development opportunity.  He also drew attention to and welcomed the proposal to allocate £150,000 to the Bristol Housing Festival subject to business case.

 

Cllr Savage welcomed the benefits that would be brought across the region through the approval of the report proposals and particularly drew attention to the recommendations which would enable the following projects to progress: Cribbs Patchway cycle links package, Cribbs Patchway MetroBus extension; MetroWest Phase 2; Charfield station; further Park and Ride sites; and the Bristol Parkway Station bus/rail interchange enhancements.

 

Cllr Romero also welcomed the regional benefits that the proposed investment package would bring, drawing attention in particular to the proposed approvals relating to the Somer Valley Enterprise Zone, Bath River Line and the proposal to allocate £250,000 to develop business cases for the Energy Strategy – Climate Change Action Plan,

 

The Chair then moved to the voting on the recommendations as amended.

 

The committee RESOLVED:

 

1.    To approve the Investment Fund scheme assessment criteria shown in Appendix 2.

 

2.    To approve an overall funding envelope of £350m, (Investment Fund and Transforming Cities Fund), for the period up to March 2023.

 

3.    To approve the Full Business Case for the CPPN Cycle Links Package subject to concluding all land agreements.

 

4.    To approve the Full Business Case for Realising Talent project subject to the supply of a detailed cost breakdown, risk register and finalisation of the Monitoring and Evaluation Plan.

 

5.    To approve the Full Business Case for the South West Institute of Future Technologies and award of £500,000 from the Investment Fund.

 

6.    To approve the Full Business Case for the Cribbs Patchway MetroBus Extension and award £21.9m of Investment Fund subject to supply of a detailed elemental cost breakdown for the highway works and securing all necessary land.

 

7.    To approve the allocation of £20m to Quantum Technologies Innovation Centre+ project and the underwriting of a further £14.974m subject to Full Business Case and necessary due diligence.

 

8.    To approve the Outline Business Case for Bristol Temple Meads Eastern Entrance and award of £2.5m of funding through the Investment Fund as set out in the Feasibility and Development Funding Application.

 

9.    To approve the Outline Business Case for the Somer Valley Enterprise Zone and award of £746,000 of funding through the Investment Fund to develop the Full Business Case.

 

10.  To approve the Outline Business Case for the Bath River Line and award of £150,000 of funding through the Investment Fund to develop the Full Business Case.

 

11.  To approve the Outline Business Case for MetroWest Phase 2 and award of £3.519m to develop the Full Business Case noting the need to enhance the Benefit to Cost Ratio to at least 2 by Full Business Case stage.

 

12.  To approve a further £900,000 to develop a Full Business Case for Charfield Station.

 

13.  To allocate £1.3m to the WE Work for Everyone project subject to business case and securing ESF.

 

14.  To allocate £250,000 to the Research and Innovation Challenge Fund subject to business case and securing ERDF.

 

15.  To allocate £30,000 to develop a Full Business Case for the South Bristol Enterprise Support and Workspace subject to approval of a Feasibility and Development Funding Application.

 

16.  To allocate £500,000 to develop Outline Business Cases for Strategic Park and Ride subject to approval of a Feasibility and Development Funding Application; and to earmark £3.5m for the delivery of Yate park and ride subject to completion of Business Cases as required.

 

17.  To allocate £200,000 to develop Outline Business Cases for the Bus Strategy and Deal subject to approval of a Feasibility and Development Funding Application.

 

18.  To allocate £250,000 to develop business cases for the Energy Strategy – Climate Change Action Plan subject to approval of a Feasibility and Development Funding Application.

 

19.  To allocate £150,000 to the Bristol Housing Festival subject to business case.

 

20.  To allocate £300,000 to Bristol Parkway Station Bus/Rail Interchange Enhancements subject to approval of a change request for the Cribbs Patchway MetroBus Extension project.

 

21.  To approve the principle of the West of England Combined Authority managing the financial risks for projects which are led and delivered by WECA with individual councils carrying the financial risk for any specific schemes that they lead on, and deliver, within their specific area.

 

22.  To approve the changes for schemes within the Investment Fund programme shown in Appendix 3.

 

23.  To approve the potential with-holding of an element of the £50m approved Land Acquisition Fund should overall financial commitments exceed the sum of funding available up to March 2023.

 

24.  To approve that the first £20m of any drawdown against the Land Acquisition Fund, subject to the level of funding available, is reserved for strategic schemes within Bath & North East Somerset within the current financial year.