The Swansea Bay City Region Joint Committee convened on Thursday, 11 April 2024, approving key updates and procedures to advance regional development projects. Decisions included the approval of the Swansea Bay City Deal Portfolio Business Case for submission to governments, and the adoption of new Change Control Procedure and Thresholds to manage project modifications.

Pembroke Dock Marine Update

Steven Edwards, from the Port of Milford Haven, provided an update on the Pembroke Dock Marine (PDM) project. The project has made significant progress, with its Gateway Review rating it as Amber/Green for delivery confidence. The review highlighted PDM as a flagship component of the City Deal portfolio, noting substantial progress and its role as a bedrock for the Celtic Freeport submission. Key achievements include the completion of the mega slipway, a large laydown area, new offices, and super-sized hangars. Engagement is ongoing with international organisations interested in utilising the world-leading facilities. The project is seen as a crucial platform for net-zero initiatives and has attracted significant interest from ministers and influencers. Key risks identified include the potential pausing of the test and demonstration phase due to a lack of government support for floating offshore wind and the need to secure hydrogen cluster investments. Opportunities lie in commercialising the infrastructure and leveraging PDM as a focal point for future funding and marine energy support. Councillor David Simpson expressed pride in Pembrokeshire County Council's association with the project and highlighted the global interest in the mega slipway. Chris Foxall inquired about plans to promote the project internationally, to which Steven Edwards confirmed ongoing engagement at overseas conferences and events.

Campuses Project Update

Clare Henson, Project Manager, presented an update on the Campuses project, which is in its early stages and focused on bringing sports tech and med tech companies to the area. The project has three main outputs: a Management Centre in Morriston, a new build on the Sketty Lane campus, and an application for a Link Road access route to the M4 to unlock a 55-acre site. Funding agreements have been signed, unlocking progress with the Health Board, although a delay has necessitated a change notification to realign benefit and finance timelines. Key risks include competition for incubation spaces, with the project working with other regional partners to ensure distinct offerings. Building affordability is also a concern due to increased construction costs, but the university is funding the gap. The project is well-governed, with a project management team and a governance board that feeds into Swansea University's tier-one boards. Commissioned work has explored market opportunities and future investment. Initial designs for the Morriston campus development show networking spaces and areas for businesses of various sizes. The Sketty Lane development has completed stage three reports and is currently in planning, with no objections to date. A health needs assessment has been carried out by Public Health Wales to inform potential services within the new buildings. Visuals of the phase two development at Singleton Sports Park were presented, including a 3G pitch and a new stand. Successful grant awards have been received, and partnerships are being forged with organisations like Swin Wales and the WRU. Chris Foxall inquired about dialogue with Pentra Owl and progress on venture funding for startups, with Clare Henson confirming ongoing dialogue and discussions with organisations for venture funding, though nothing is confirmed yet. Martin Nicholls asked about the capture of additional funding as part of the private sector aspect of the City Deal, with Jonathan Burnes confirming that all awards will be captured and that money will not be double-counted.

Swansea Bay City Deal Highlight Report

Jonathan Burnes, Director of the Swansea Bay City Deal (SBCD), provided a highlight report, focusing on marketing, communications, and engagement. He detailed a series of four Meet the City Deal events held across South West Wales, engaging with hundreds of businesses and stakeholders. These events have fostered cross-fertilisation between project teams and localities, sparking conversations and debate. A summary report will be shared at the next meeting. Karen Jones confirmed attending the Neath Port Talbot event and noted the positive feedback from the business community, highlighting the success of the roadshow approach.

Construction Impact Assessment Summary

Jonathan Burnes presented the Construction Impact Assessment, a regular report detailing the overall estimated construction cost gap of £43.5 million. This represents an increase of £1.2 million since the previous report, primarily due to the Supporting Innovation Locale and Growth (SILCG) project. Neath Port Talbot Council and Swansea University are seeking additional funds to bridge this gap. Mitigations are being implemented across all projects, including securing additional funding and revisiting construction briefs. A residual gap of approximately £12.75 million remains, but efforts are underway to reduce this. The Campuses project, for example, has reduced its Singleton phase one costs by over half a million pounds through value engineering. The report was approved by the Joint Committee.

Swansea Bay City Deal Portfolio Business Case Update

Ian Williams, SBCD Portfolio Development Manager, presented the fifth iteration of the Portfolio Business Case, updated annually. The business case aligns with the five-case business model, demonstrating viability, value for money, affordability, and deliverability. It reflects the current position of the portfolio and its components, with main changes highlighted in the executive summary and each of the five sections. Key updates include policy alignment, revised GVA information, and the inclusion of the Tata Steel job loss announcement. The economic case incorporates the National Net Zero Skills Centre of Excellence and updates on Pembroke Dock Marine and Digital Infrastructure. The commercial case details key procurements and the Construction Impact Assessment, identifying a residual funding gap of £11.6 million. The financial case shows updated investment information at £1.282 billion and £123 million in grant drawdown to date. The management case details evolving delivery arrangements and includes proposed change thresholds. The next stage involves submission to governments, with consideration by the Welsh Government City and Growth Deal Investment Board on 25 June, which will trigger the next tranche of City Deal funding. The report was approved.

Change Control Procedure and Thresholds

Jonathan Burnes presented the proposed change control procedure and thresholds. Following internal audit recommendations, five categories have been created with associated values to trigger change notifications. These categories cover financial cost variations (±£1 million or 10%), time variations (±3 months to key milestones), quality changes (affecting scope, fabrication, location, purpose, sustainability, or project constraints), benefits variations (±10% to quantifiable benefits), and portfolio-level benefits variations (±10% to portfolio objectives). These thresholds are indicative and can be adjusted. The procedure has been reviewed by the Program Board and project leads. The report was approved.

The meeting concluded with thanks to all attendees and a positive outlook on the progress being made across the portfolio.