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SFT delivers £111m benefits in first year of operation
Scottish Futures Trust (SFT) has delivered £111m of net benefits and savings to infrastructure investment in Scotland, during the 2009-2010 financial year, SFT’s first full year of operation.
The net benefits and savings are made up of £86m of Efficiency Gains, £27m of Additional Investment and £1m of Avoided Costs, and also take account of the £3m operating costs of SFT during 2009-2010. The benefits statement has been independently externally validated by Grant Thornton LLP, a leading financial and business advisor in infrastructure investment, as well as a team of academics from the London School of Economics and Political Science (LSE).
SFT works in partnership with many groups across the public sector. The £111m of net benefits is the amount attributable to SFT alone and represents just over 50% of the £218m in total benefit to infrastructure investment in Scotland achieved from SFT’s work with partner organisations during 2009-2010.
The £111m of benefits significantly exceeds the commitment in SFT’s 2009-14 Corporate Plan to deliver an initial £7 of benefits for every £1 spent on the organisation and is within the range of £100-150m per annum of benefits originally anticipated when we became fully operational.
Barry White, chief executive of SFT, said: “I am delighted to have worked with organisations across the Scottish public sector to deliver £111m of net benefits and savings to the taxpayer during our first full year of operation. This is a testament to the skills of my team and our collaborative partners.
“It demonstrates the potential that robust challenge and commercial expertise can bring to future infrastructure investment across Scotland, saving taxpayers’ money in the increasingly challenging times to come. SFT remains completely committed to delivering substantial savings and benefits for all taxpayers wherever money is being spent on bricks and mortar.”
Sir Angus Grossart, chairman of SFT, said: “This statement, independently verified, is the clear evidence of what we are already achieving. It underlines the merits and potential of SFT. These were also clearly endorsed by the Independent Budget Review, who called for SFT to have an enhanced role, and made specific positive recommendations to achieve it.
“As importantly, we are working in strong partnership with all the local authorities and many other bodies in Scotland. We are now addressing a total infrastructure programme which exceeds £7bn, where we are deploying the skills of a highly professional team. They are creating and retaining a strong asset of accumulating knowledge and experience, which, before SFT was formed, was often repurchased, on a project by project basis, from consultants. We are confident that we will deliver further clear evidence of our activity and benefits and demonstrate a major and positive contribution, at a time of great financial challenge for Scotland.”
In 2009-2010 SFT supported a portfolio of projects valued at £5.5bn; this has since risen to £7bn, more than £1bn of which is additional investment, over and above traditional capital budgets. This portfolio of projects includes: hub Scotland; Scotland’s Schools for the Future programme; Tax Incremental Financing; the National Housing Trust and other housing projects; Waste Management and Renewables Infrastructure; and Transport projects including Borders Railway, Forth Replacement Crossing and Aberdeen Western Peripheral Route as well as the Southern General Hospital, Glasgow.
Further details about the breakdown and explanation of the benefits statement are available in the report Scottish Futures Trust Statement of Benefits 2009/2010 which is available on the SFT website here
For further information please contact Kevin O’Hare, Communications Manager
Kevin O'Hare on 0131 510 0805 or 07590 230 645
First hub joint venture company is formed
The hub South East Territory Programme Board today announced the formation of Hub South East Scotland Limited after the boards and committees of all the public sector partners signed up to join the joint venture company.
Hub South East is the first hub territory to create its joint venture company and expects to deliver projects estimated at £300 million over the next 10 years. This announcement is a significant milestone for the hub programme with construction on the first project, Drumbrae Library and Community Hub in Edinburgh, planned to start this year.
Hub projects will be delivered through a joint venture company (hubCo) formed between the public sector bodies and a private sector development partner, which in the South East Territory is SPACE consortium. The hub initiative brings Scotland’s public sector bodies together to deliver a wide range of joint services to achieve better value for money and continuous improvement.
The hub initiative, which is led nationally and supported locally by the Scottish Futures Trust, plans to deliver more than £1 billion of new community infrastructure across Scotland though the five hub areas.
The Scottish Futures Trust (SFT) will now work with SPACE consortium and all the public sector partners in the South East Territory to deliver these projects. SPACE consortium comprises Galliford Try, Davis Langdon Investments and Fulcrum Infrastructure Group. Hub South East Territory partners include: NHS Lothian; NHS Borders; City of Edinburgh Council; Scottish Borders Council; East Lothian Council; Midlothian Council; West Lothian Council; Lothian and Borders Police; Scottish Ambulance Service; and Lothian and Borders Fire and Rescue Service.
Bill Ness, from City of Edinburgh Council and who chairs the hub South East Programme Board, said: “The foundation of Hub South East Scotland Limited will ensure better value for money on a series of public sector joint projects for many years to come. Health boards, local councils and other public sector bodies will all benefit from working together on such joint community projects.”
Peter Reekie, Director of Finance and Structures at the Scottish Futures Trust, said: “This is a huge achievement for the hub initiative and SFT looks forward to working with the public and private sector partners to deliver benefits and savings to the taxpayer through these joint projects.”
Andrew Richards, Chairman and Director of SPACE, said: “We are delighted to have been chosen to deliver these major public sector facilities across South East Scotland. This agreement further reinforces our leading position in the social infrastructure market in the UK, where we have established a very strong track record.”
The Scottish Futures Trust allocated £6.5m start-up funding for the initial hub projects in the South East earlier this year. The initial South East projects are (project values in brackets):
• Drumbrae Library and Community Hub (£5.7 million)
• Firrhill Health and Social Care Centre (£9 million)
• Gullane Surgery and day Care Centre (£4 million)
• North West Edinburgh Partnership Centre (£35 million)
• Wester Hailes Healthy Living Centre (£12 million)
• Blackburn Partnership Centre (£12 million)
For further information please contact Kevin O'Hare on 0131 510 0805 or 07590 230 645
IBR report proposes enhanced role for SFT
Scottish Futures Trust chief executive Barry White welcomed the report of Scotland’s Independent Budget Review (IBR) panel which proposes an enhanced role for SFT with three of the six recommendations on infrastructure spending using SFT as the delivery mechanism.
Barry White, Chief Executive of Scottish Futures Trust, said:
“The report sets out very clearly the size and nature of the challenges that lie ahead. The analysis of potential options to address these challenges is wide ranging and thoughtful. I welcome this important review’s strong support of SFT’s purpose and its further proposals that SFT’s role be enhanced.
"I agree with the report’s suggestions that the Scottish Futures Trust has a significant role to play in meeting the challenges in infrastructure investment.”
SFT’s own submission to the IBR panel emphasised the wide ranging response to impending budget cuts and the changed economic circumstances in relation infrastructure investment in Scotland. The submission included high-level innovative approaches to planning, financing and delivery.
SFT’s submission highlighted:
• The importance of infrastructure investment for economic growth and jobs
• The planning and prioritisation for infrastructure projects
• A challenge function to identify needs rather than wants
• Funding alternatives including innovative ways to unlock new funding streams
• Financing alternatives using both public borrowing and private financing
• Need for collaboration in infrastructure planning and procurement to deliver efficiencies
• The strategic consideration of what assets the public sector needs to own
For further information please contact Kevin O'Hare on 0131 510 0805 or 07590 230 645
SFT's submission to the IBR can be viewed here
Scottish Futures Trust’s paper on Scottish Water Funding in Public Ownership is available here
The full report of Scotland’s Independent Budget Review (IBR) panel is available
here
SFT publishes budget review submission
Scottish Futures Trust has published its submission to the Independent Budget Review panel set up by the Scottish Government.
The submission presents SFT’s wide ranging response to impending budget cuts and the changed economic circumstances in relation infrastructure investment in Scotland. The submission includes high-level innovative approaches to planning, financing and delivery.
SFT’s submission highlights:
• The importance of infrastructure investment for economic growth and jobs
• The planning and prioritisation for infrastructure projects
• A challenge function to identify needs rather than wants
• Funding alternatives including innovative ways to unlock new funding streams
• Financing alternatives using both public borrowing and private financing
• Need for collaboration in infrastructure planning and procurement to deliver efficiencies
Barry White, Chief Executive of Scottish Futures Trust, said:
“Given the future economic challenges, Scottish Futures Trust has proposed innovative approaches to planning, financing and delivery which will make sure infrastructure investment continues across Scotland despite these difficulties.
“Scottish Futures Trust will continue to work with the public sector to deliver the best possible value where money is being spent on bricks and mortar.”
The full submission can be viewed here
For further informationor to arrange interviews with Barry White, Chief Executive of Scottish Futures Trust, please contact Kevin O'Hare on 0131 510 0805 or 07590 230 645
South East hub announces preferred bidder
The hub South East Territory Board has announced that the SPACE consortium (comprising Galliford Try, Davis Langdon and Fulcrum Infrastructure Group) has been selected as the preferred partner for the South East Territory.
hub South East was the first hub territory to move into procurement and expects to deliver projects estimated at £300 million over the next 10 years. Today’s announcement is a significant milestone for the hub programme with construction on the first project, Drum Brae Library and Community Hub in Edinburgh, planned to start during 2010.
hub projects will be delivered through a joint venture company (hubCo) formed between the public sector bodies and a private sector development partner, which in the South East Territory will be the SPACE consortium. The hub initiative brings Scotland’s public sector bodies together to deliver a wide range of joint services to achieve better value for money and continuous improvement.
As preferred bidder, the SPACE consortium will now work with all public sector partners in the South East Territory and the Scottish Futures Trust to deliver these projects. Hub South East Territory prospective partners include: NHS Lothian; NHS Borders; City of Edinburgh Council; Scottish Borders Council; East Lothian Council; Midlothian Council; West Lothian Council; Lothian and Borders Police; Scottish Ambulance Service; and Lothian and Borders Fire and Rescue Service.
James McCaffery, Chair of the South East hub Territory board, said: “I am looking forward to working with the SPACE consortium to develop improved and excellent value joint public sector buildings across the South East Territory which will benefit the people of the area for many years to come.”
Barry White, Chief Executive of the Scottish Futures Trust, said: “This is a huge achievement for the hub initiative which SFT has been instrumental in driving forward towards today’s important milestone.”
Paul McGirk, Chairman and Director of SPACE, said: “We’re delighted to have been selected as the preferred private sector development partner. We very much look forward to working with Scottish Futures Trust, our other partners in the territory and with the people and businesses throughout the South East Territory. Together, we will develop efficient high quality solutions which will add real value to the communities they serve.”
The Scottish Futures Trust allocated £6.5m start-up funding for the initial hub projects in the South East in March 2010. The initial South East projects are (project values in brackets):
• Drum Brae Library and Community Hub (£5.7 million)
• Firrhill Health and Social Care Centre (£9 million)
• Gullane Surgery and day Care Centre (£4 million)
• Muirhouse Partnership Centre (£35 million)
• Wester Hailes Healthy Living Centre (£12 million)
• Blackburn Partnership Centre (£12 million)
The hub initiative, which is led nationally and supported locally by the Scottish Futures Trust, plans to deliver more than £1 billion of new community infrastructure across Scotland though the five hub areas.
For further information, images of some of the initial hub projects, or to arrange interviews with Barry White, Chief Executive of Scottish Futures Trust, please contact Kevin O'Hare on 0131 510 0805 or 07590 230 645
Designer appointed for new schools
The Scottish Futures Trust is pleased to announce that the Councils involved in the Scottish Schools Investment Programme Pilot Project have selected BDP, supported by Gardiner & Theobald, as the winning design team for the design development of Eastwood High School in East Renfrewshire and Lasswade High School in Midlothian.
BDP will lead on architectural and engineering services while Gardiner & Theobald will provide project and cost management support. The schools are being delivered through the £1.25billion Schools Investment Programme being funded by the Scottish Government and Scotland’s Councils. The Programme is being managed by SFT and the schools are being procured together in a £65million ground-breaking collaborative initiative that will save at least £2million as a result of the Councils’ jointly procuring these schools.
This is the first time two Councils have come together to procure new schools and if the initiative proves successful this collaborative model will be used further to achieve benefits and savings across the programme.
Barry White, SFT Chief Executive, said: “The appointment of BDP and Gardiner & Theobald is a significant milestone in this innovative project. They have emerged from a very strong shortlist and will work closely with the Councils and SFT in supporting our aim of delivering good, well designed and sustainable schools at a competitive price.”
Colin Allan of BDP said: “BDP is delighted to have been appointed as architects and designers for the new pilot schools project. Building on our extensive experience of innovative and sustainable education projects, we look forward to working with all stakeholders on this very significant and exciting project.”
ends
Notes to Editors
The procurement of a construction contractor for the pilot schools has already begun and will be completed by February 2011. Construction is currently scheduled for completion in June 2013 ready for schools re-opening in August 2013.
The Scottish Futures Trust, with its commitment to realise £7 of benefits for every £1 it spends, is managing the Scottish Government's £1.25billion schools programme, leading the £1bn hub community and health infrastructure initiative, and is the driving force behind the new National Housing Trust that seeks to provide more than 1000 extra homes initially available for mid-market rental. SFT is also supporting transport, waste, health and education projects across Scotland. Further information about SFT activities can be found at www.scottishfuturestrust.org.uk
For further information contact Kevin O’Hare at SFT on 0759 023 0645 or 0131 510 0805 or by email at Kevin.ohare@scottishfuturestrust.org.uk
