The Swansea Bay City Region Joint Committee met on Thursday, 8 February 2024. The committee approved the proposed Forward Work Plan, subject to further discussions regarding funding opportunities for projects. The committee also approved the financial monitoring update report.

The committee received updates on the Innovation Matrix and Precinct projects, and the quarterly monitoring report for the Swansea Bay City Deal for information.

Innovation Matrix and Precinct Update

Ian Walsh, Senior Responsible Owner for the Innovation Matrix, and Geraint Flowers, Project Lead, presented an update on the progress of the Innovation Matrix project and the outcomes of a recent external gateway review. The Innovation Matrix, a key component of the Swansea Bay City Deal's vision for a digital future in Swansea, is nearing completion, with construction on track and occupancy expected to begin in July 2024. The project aims to foster collaboration between businesses and academia, with over 50% of the leasable space already under legally binding contracts or heads of terms.

A recent external gateway review rated the Innovation Matrix project as Amber-Green, indicating that successful delivery is probable but requires continued attention to manage risks. The review highlighted the project's strong progress, experienced team, and innovative operational model. However, it also noted that the construction budget has limited flexibility and recommended appointing an accountable Senior Responsible Owner (SRO) and developing enduring change and engagement capabilities.

Regarding the Innovation Precinct, the review team did not assign a delivery confidence rating due to a lack of clarity around its future direction. The project faces challenges in securing private sector funding and agreeing on a clear vision. The committee was informed that discussions with Swansea Council and potential private sector partners are ongoing, with a refined proposal expected in the coming weeks. The university aims to provide clarity on its direction by 31 March.

Joint Committee Forward Workplan

Jonathan Burnes, Director of Swansea Bay City Deal (SBCD), presented the proposed Forward Work Plan for the next 6-12 months. The plan outlines planned activities related to governance, communications, engagement, legal, and finance. Councillor Chris Foxall suggested adding a strategic discussion on funding opportunities, including those from UK and Welsh government calls aligning with City Deal priorities, to the work plan. This was agreed, with the possibility of a workshop to further develop these ideas. The committee resolved to approve the proposed Forward Work Plan, subject to further discussions regarding funding opportunities for projects.

Swansea Bay City Deal Financial Monitoring Report 2023/24

Chris Moore, S151 Officer for SBCD, presented the provisional outturn position for Quarter 3 (October-December 2023). The report detailed the forecasted year-end outturn for the Joint Committee and the Portfolio Investment Fund. The Joint Committee's expenditure was forecast at £2,225k, with an estimated underspend of £242k against the budget for the Portfolio Management Office. The report also highlighted that accrued interest on cash balances is estimated at £2,112k, which will be reapportioned to constituent authorities.

For the Portfolio Investment Fund, the overall estimated investment position is £1.280 billion over the fifteen-year life of the portfolio, representing an over-investment of £32 million against the revised budget. This increase is primarily attributed to Digital Infrastructure and Swansea Waterfront projects. The report also noted an under-investment of £43.4 million for the financial year 2023/24, which is a reprofiling of expenditure rather than a reduction in overall investment. The committee resolved to approve the financial monitoring update report.

Swansea Bay City Deal Quarterly Monitoring Report 2023/24

Jonathan Burnes presented the Quarterly Monitoring Report, providing an overview of the SBCD Portfolio and its constituent programmes and projects. The report indicated that the Supporting Innovation and Low Carbon Growth (SILCG) programme moved from Green to Amber status due to a funding gap with the SWITCH project, and the overall delivery status also remained Amber. Yr Egin's delivery and resourcing also moved from Green to Amber. The number of Red Risks decreased from six to five, with the pressure on the construction industry to meet demand reducing from Red to Amber. One Red Issue, relating to funding agreements, was resolved, reducing the total to zero. The report also highlighted an uplift in jobs created and total investment. The committee received this report for information.