This meeting was about providing an update on the status of the Growing Mid Wales project and making some decisions about the project's finances. It also discussed the work of the Mid Wales Regional Skills Partnership and its Employment and Skills Plan Update.

Growing Mid Wales finances

The Board was scheduled to be provided with a report about the finances of the Growing Mid Wales project for the year ending 31 March 2024. This included a report about the project's income and expenditure, which showed that the project underspent by £287,813. The project’s managers attributed this partly to maximising staffing spend against the final instalment of WEFO¹ funding and the slower than anticipated progress of projects which resulted in an underspend against the assurance budget line, and the delay in completing the Sites & Premises Programme Development.

The Board was also scheduled to approve an updated budget for 2024/25 of £642,343 as £25,000 had been set aside in an earmarked reserve to be spent during 2024/25 on the Sites & Premises Programme Development work.

Growing Mid Wales progress

The Board was scheduled to be provided with a strategic update on the progress of the Growing Mid Wales project.

The report for discussion stated that the project had faced a number of challenges, including:

• Match Funding: as the fiscal climate in the public sector has worsened gradually over the past year, Project Sponsors have found it increasingly challenging to secure funding streams to honour match funding commitments and support development costs of bringing project business cases to fruition.
• Affordability: there are continued pressures on project finances that has caused a persistent upward pressure on total project costs. Despite the economic situation improving slightly, and the economic outlook suggesting modest improvement – project budgets remain higher than originally anticipated.

The report for discussion also detailed some key achievements, including:

• Management: a new Portfolio SRO has been appointed to oversee the Growth Deal. This is a single officer appointment and reports directly to the Chief Executives of both Powys and Ceredigion Councils.
• Resourcing: proposals have been drafted to address capacity and capability gaps identified in the Portfolio Management Office. Proposed changes have been programmed in to be implemented very early in the New Year.

The Board was also scheduled to note the contents of the project’s timeline, which shows when different aspects of the project are scheduled to be delivered.

Finally, the Board was scheduled to be updated on the progress of the different projects that make up the Growing Mid Wales project, including the Digital Programme and the Sites & Premises Programme.

Mid Wales Regional Skills Partnership

The Board was scheduled to be updated on the progress of the Mid Wales Regional Skills Partnership, against the five objectives that were agreed in September:

• Careers Information, Advice and Guidance and Work Experience
• Fit for purpose training provision that also addresses attitudes and behaviour in the workplace.
• Leadership and Management
• Improving access to apprenticeships and degree apprenticeships
• Supporting the transition for businesses to Net Zero and understanding the future energy requirements. Supporting the growth of retrofit[^3], specialist plumbing, and electrical engineering positions.

The Board was scheduled to discuss the contents of the recently published Mid Wales Regional Skills Partnership Employment and Skills Plan Update.

The Board was also scheduled to discuss the proposed adjusted approach to business case development for the four standalone projects: Cynefin, the Elan Valley Lakes, the Green Futures Innovation Park and the Montgomery Canal – Restoration to Navigation.

This proposed approach will see two of the projects (Cynefin and Elan Valley Lakes) adopt a ‘Project Hybrid’ approach. This will see them gain outline business case approval and then submit subsequent multi work-packages for final business case approval on a phased basis.

The other two projects (Green Futures Innovation Park and Montgomery Canal – Restoration to Navigation) will, following successful approval of their strategic outline case, work on developing a Programme Business Case. This will enable both projects to develop a phased approach to both securing match funding and planned project delivery.

The report for discussion stated that:

“Both approaches offer a pragmatic solution to the funding challenges faced by all four projects. Importantly, both approaches remain true to the spirit and principles of the 5-Case Business Model. The approaches deviate from convention but offer the following benefits that aid sponsors and the MWGD to navigate significant barriers to progress:

• Momentum is maintained by advocating a rational business case development process
• The principles of the 5-Case Business Model and Guidance are retained
• With the hybrid approach, OBCs provide greater detail than a Programme Business Case
• Sponsors can effectively manage their match funding challenges
• Sponsors can progress delivery quicker and further build momentum
• Recovery of agreed capital costs will aid sponsors to pragmatically manage cashflow”

The report for discussion went on to note that Both PDB and GMW Board are assured that there is no funding decision attached to these changes in approach as ultimate funding remains subject to the successful submission and approval of a final business case (or business justification case where appropriate) as is standard.