Water - Delivery Assurance Group (DAG) report: quarter 2 - 2022 to 2023

4. Overall Project Progress Water Portfolio

The Water Portfolio comprises 3 sub-portfolios: SR15 Completion; Water Quality; and Water Supply. Detail on progress within each of these can be found in Appendix A. Although the Gate 100 Acceptance milestone remains challenging, performance on the Start on Site and Financial Completion Milestones means that the Q2 overall performance in the water portfolio is within the range (Figure 5) with 218 points achieved to date; this is 22 below the central forecast of 240.

SOS

Performance on the Start on Site milestone (Figure 6) remains strong with all 3 of the sub-programmes achieving the central forecast. 56 projects have now started on site, 12 of these in Q2 2022/23.

Acceptance

10 projects achieved acceptance in Q2 delivering benefit to customers taking the total to 82 projects that have now achieved acceptance against a forecast range of 93 – 115 at time of commitment.

7 projects in the SR15 Completion sub-programme have been reforecast - 2 of these projects are now substantially complete and forecasting acceptance in Q3, with a further 4 projects forecasting completion in Q4. Reasons for reforecasting:

• 4 projects due to third party issues - Yarrowfues WTW main-out, Back Tolsta (the scheme is in service with customers benefiting), Ringford WTW and Ness WTW)
• 2 due to construction risks being realised. South Edinburgh Service Resilience because of faulty pipes and Uig WTW where additional scope was identified as necessary during construction
• 1 - Fair Isle - where the new asset is in service with some further work being undertaken to permanently remedy faults

16 projects in the Water Quality sub-programme have been reforecast. 6 are now substantially complete and are forecasting acceptance in Q3 with a further 3 forecasting acceptance by the end of the year.

Reasons for reforecasting:

• 1 – Marchbank - due to delays in starting on site
• 2 - Bradan WTW and Daer CWT - due to additional scope being required to complete the projects
• 12 projects have been impacted by construction risks and supply chain delays
• 1 - Kirkmichael WTW has been returned to the Plan stage to review alternative options as the operational solution identified has proven to be ineffective

The Water Supply sub-portfolio remains on track with milestone achievement within the planned range.

We continue to work to understand and learn from risks to improve the forecast and delivery of new projects. When committing to the delivery of a project we balance the likelihood of delay due to risks against setting an over cautious target with the potential to lose focus on the need to drive delivery.

Financial Completion

Performance on the Gate 110 Financial Completion milestone (Figure 8) remains strong with all 3 of the sub-portfolios being in the range (Figure 8). 80 projects have now achieved Gate 110.