The Swansea Bay City Region Joint Committee met on Thursday 13 February 2025. The committee approved the Swansea Bay City Deal Financial Monitoring Report 2024/25 Provisional Outturn Position Quarter 3 and a review into the future role of its Programme/Portfolio Management Office (PoMO). The committee also received updates on portfolio monitoring, construction impact assessments, and private sector investment, noting these reports.

Swansea Bay City Deal Financial Monitoring Report 2024/25 Provisional Outturn Position Quarter 3

The committee approved the Swansea Bay City Deal Financial Monitoring Report for Quarter 3 of the 2024/25 financial year. Chris Moore, the S151 Officer, presented the provisional outturn position, highlighting an estimated underspend in the PoMO budget due to unfilled staff vacancies. He also noted an estimated £3 million in interest income from cash balances, which would be distributed back to constituent authorities.

Regarding portfolio investment, the report indicated a total estimated investment of £1.321 billion over the 15-year life of the deal, an increase of £40 million against the revised budget. This over-investment was attributed to factors such as additional private sector funding for Digital Infrastructure, Pembroke Dock Marine, and Pentre Awel, while Swansea Waterfront showed an under-investment. The report also detailed an annual under-investment of £89.6 million for the current financial year, attributed to project timing and procurement delays. Despite these variations, the overall portfolio investment was forecast to exceed the original business case.

Swansea Bay City Deal - The Future Role of the Programme / Portfolio Management Office (PoMO)

The committee approved a review of the Programme/Portfolio Management Office (PoMO) function, acknowledging that current funding for the PoMO would be exhausted in the next financial year (2025-26). Debbie Smith explained that the review, to be undertaken by a representative officer group from the four constituent authorities, would assess efficiencies, potential improvements, and alignment with other governance arrangements, particularly the Swansea Bay City Region Combined Joint Committee (CJC). The aim is to present options and an impact evaluation to the Joint Committee at a future meeting, with a projected timeline for concluding the review by the end of April.

Chris Moore provided context, clarifying that the initial funding for the PoMO was for a five-year period, not the full 15-year lifespan of the City Deal. He stressed the importance of defining the necessary staffing provision for the entire 15-year period and clarifying support needs beyond the primary project delivery phase. Councillor Rob Stewart, Leader of the Council, supported the review, emphasizing the need to assess future requirements in light of changes since the City Deal's inception, including the establishment of CJCs and the availability of resources within local authorities.

Swansea Bay City Deal Quarter 3 Portfolio Monitoring Report 2024/25

Jonathan Burnes presented the Quarter 3 Portfolio Monitoring Report, highlighting a change in the RAG status for Skills from Green to Amber due to lower-than-anticipated apprenticeship figures. The report noted three persistent Red Risks: increasing construction costs, projects failing to deliver outputs and outcomes within business cases, and flood risk management issues related to TAN 15¹. Two Red Issues were also identified: in-year financial slippage and project financial reprofiling for future years.

Positive updates included an increase in jobs created from 623 to 742 and an increase in investment from £395.9 million to £459.9 million. Specific project updates included the estimated handover of Carnarvon, Phase 1 of Pentra Owl in May, and the imminent announcement of tenancy arrangements for 71-72 Kingsway in Swansea. The Matrix development at Swansea Waterfront was reported as open with tenants moving in. A significant announcement was the additional £8.2 million in funding for the SWITCH project² in Port Talbot from the Charter Steel Transition Board. The report was noted by the committee.

Construction Impact Assessment Review Report

Peter Austin presented the Construction Impact Assessment Review Report, noting that there were no reported increases in construction costs in this period and a reduction in Red Risks. He explained that the assessment methodology was evolving to focus on individual project elements rather than broader business cases. While construction costs remain higher than in previous years, the sector is considered more stable, with greater predictability in pricing and improved supply chain confidence. However, a five-year forecast predicts a 17% increase in building costs and a 19% rise in tender prices. The report indicated an estimated funding gap of £42.69 million for elements yet to be procured, with mitigating actions being developed by Lead Delivery Organisations. The report was noted by the committee.

Private Sector Investment/Contribution Report

Peter Austin also presented the Private Sector Investment/Contribution Report, highlighting that the current forecast of £669.14 million exceeds the original portfolio target of £637 million by approximately £32 million. He noted that a significant portion of private sector contribution is expected to materialise from 2025 onwards as projects move into delivery and operation. The report acknowledged that projects are experiencing slippage due to macroeconomic factors, but the Programme and Project teams remain confident that the private sector contribution is viable and achievable over the City Deal's duration. The report was noted by the committee.

Decisions Made:

• Swansea Bay City Deal Financial Monitoring Report 2024/25 Provisional Outturn Position Quarter 3: Approved.
• Swansea Bay City Deal - The Future Role of the Programme / Portfolio Management Office (PoMO): Approved.
• Swansea Bay City Deal Quarter 3 Portfolio Monitoring Report 2024/25: For information.
• Construction Impact Assessment Review Report: For information.
• Private Sector Investment/Contribution Report: For information.