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Infrastructure Investment Board: terms of reference

Terms of reference for the Infrastructure Investment Board for 2022 to 2023.


Vision

The Infrastructure Investment Board (IIU) strengthens strategic direction, prioritisation and oversight to ensure coherent advice and aligned delivery of an effective, fiscally sustainable programme which maximises Ministers' ambition for infrastructure investment.

The Infrastructure Vision as set out in the Infrastructure Investment Plan is as follows:

Our infrastructure supports Scotland’s resilience and enables inclusive, net zero and sustainable growth.  It aligns with the National Performance Framework across its work. In particular, it aligns with the Economy, Environment and Fair Work and Business themes and supports the aims of the Framework to create a more successful country, give opportunities to all people living in Scotland, increase the wellbeing of people living in Scotland, create sustainable and inclusive growth, reduce inequalities and give equal importance to economic, environmental and social progress.

Definition of infrastructure

Infrastructure includes economic and social aspects, defined as:

"The physical and technical facilities, natural and other fundamental systems necessary for the economy to function and to enable, sustain or enhance societal living conditions. These include the networks, connections and storage relating to the enabling infrastructure of transport, energy, water, telecoms, digital and internet, to permit the ready movement of people, goods and services. They include the built environment of housing; public infrastructure such as education, health, justice and cultural facilities; safety enhancement such as waste management or flood prevention; natural assets and networks that supply ecosystem services and public services such as emergency services and resilience."

IIB Remit

Impactful strategic direction

  • advises on the delivery of the National Infrastructure Mission, responding timeously and appropriately to scrutiny
  • advises on delivery of the infrastructure vision set out in the 2021-22 to 2025-26 IIP and secure Scotland’s competitive advantage, including by engaging with global/ UK/ Scottish trends to support strategic coherence and an appropriate infrastructure investment approach that responds to economic and social impacts of COVID-19 and the UK’s exit from the European Union
  • advises on the implementation programme for an infrastructure investment decision framework described in the 2021-22 to 2025-26 IIP, including any changes to the infrastructure governance and delivery landscape; developing a comprehensive assessment of future Scottish needs and demands for infrastructure; and developing an enhanced approach to public engagement and participation in infrastructure investment
  • makes connections across investment programmes to maximise synergies and opportunities

Financially sustainable and commercially sound programme

  • advises on improved gatekeeping processes for authorising commitments.
  • reviews projected forward capital requirements against investment envelope, maximises sustainability and resilience with improved capital utilisation
  • reviews alternative financing models and sources of finance alongside their best application to portfolio programmes

Delivery risk

  • provides strategic oversight of the key risks to IIP delivery, including means and systems, and particularly relating to major projects and programmes which are reported to the Public Audit Committee
  • IIB drives improved SG capacity and capability

Strong, aligned governance

  • strengthens cohesive Ministerial action through the right, agreed roles and accountabilities
  • improves the rhythm of advice to add value to fiscal, strategic policy and project investment decisions and announcements
  • increases peer communication, challenge and support
  • improves risk management and exploitation of opportunities

Membership

Members of the IIB* are:

  • Alyson Stafford, DG Scottish Exchequer
  • Roy Brannen, DG Net Zero
  • Hugh Gillies, CEO Transport Scotland
  • Nick Ford, Director Procurement and Commercial
  • Gary Gillespie, Chief Economic Adviser
  • Kat White, Deputy Director, Infrastructure and Investment
  • Helen Carter, Deputy Director, Infrastructure and Investment
  • Shirley Laing, Director Housing and Social Justice
  • Jackie McAllister, Chief Financial Officer
  • Richard McCallum, Director of Health Finance and Governance
  • Fiona Ross, Non-Executive Director
  • Ben McKendrick, Deputy Non-Executive Director
  • Fiona Simpson, Chief Planner
  • Peter Reekie, Chief Executive, Scottish Futures Trust
  • Andrew Watson, Director of Budget and Public Spending
  • Kevin Quinlan, Director Environment and Forestry

*membership is regularly reviewed as senior officials/wider structural changes mean individuals leave and others join.

Proposed measures of IIB effectiveness

  • keeps implementation of the National Infrastructure Mission on track.
  • maximises relevant National Outcomes and an improving trend in related indicators
  • maximises capital utilisation within investment envelope
  • offers performance management oversight

Organisation and timeline

IIB will meet quarterly for around three hours. Meetings are anticipated end May, late August, October and February.

One NXD member and one additional non-DG Scottish Exchequer Board member will be required in addition to the Chair for a quorate meeting. If DG Exchequer is not available, another member may substitute as Chair by prior agreement.

The annual rhythm should support strategic issues in the early part of each financial year e.g. to support Budget preparations. The second half might focus on delivery risk and performance.

Infrastructure funding and finance

SG receives CDEL and Financial Transactions from HM Treasury, each calculated as Barnett consequentials of UK investment.

SG can borrow up to £450m p.a. capital, within an overall £3bn cap.

SG can make payments up to £700m into the Scotland Reserve, separated between resource and capital. Capital reserve funds may only be used to fund capital spending, up to £100 million p.a.

Key infrastructure public reporting

  • Infrastructure Investment Plan Annual Progress Report (April)
  • MTFS (Medium Term Financial Strategy) – Within 4 weeks of UK Spring Statement (May/June)
  • New National Performance Framework and Scotland Performs published (June)
  • Major Projects Reports to Parliament, PAC - (April/October)
  • Programme for Government (September)
  • Scottish draft Budget (November/ December)
  • SFT Corporate Plan, Business Plan and Annual Reports
  • SNIB Implementation Plan and consultation exercises

Relevant reviews and scrutiny

  • Budget Process Review Group
  • Finance 2020
  • Audit Scotland reports
  • Executive Team Governance review
  • Gateway Reviews

Secretariat

This will be provided by the Infrastructure and Investment Division. Specifically:

  • commissions and prepares papers for Board meetings
  • supports a strategic approach to infrastructure
  • coordinates inputs and liaises with key boards, programmes and projects
  • records decisions, learning, actions and follow-up
  • generates, tracks and reports management information
  • reports to Corporate Board standards

Infrastructure and Investment Division May 2022

Contact

Secretariat: Helen Carter

Email: helen.carter@gov.scot

Phone: 0131 244 4996

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