Infrastructure Investment Plan 2021-22 to 2025-26: major capital projects progress update - March 2023

Sector: Transport

Project: A9 Dualling Tomatin to Moy

Business case approved stages: Third project phase of A9 Dualling programme involves approximately six miles (9.6km) of online widening of existing single carriageway to an all-purpose dual carriageway, extending from existing dual carriageways to the south of Tomatin and to the north of Moy. The original Outline Business Case (OBC) outlined that the project was estimated to cost £197 million and planned to be operational in December 2025.

Progress at September 2022: No change to cost or timing since the last report.

The project is currently in procurement with the contract anticipated to be awarded in December 2022. The Full Business Case (FBC) will be updated prior to contract award with costs from the successful tenderer.

Progress at March 2023: The project is to be revised following the decision not to make an award under the previous procurement. Parliament was advised of this on 8 February 2023. The project is currently in preparation for a new procurement and an OBC is currently being updated along with cost estimates. It is estimated that a contract will be awarded by the end of 2023.

Contact for public enquiries: email: info@transport.gov.scot

Project: Reston and East Linton Rail Stations

Business case approved stages: Delivery of two new fully accessible Rail Stations with car parks (Reston Station in the Scottish Borders and East Linton Station in East Lothian).

The OBC outlined that project was estimated to cost £35 million and that it is planned to be operational in December 2022. The FBC outlined that the overall project was estimated to cost £35 million and was planned to be operational in summer 2023.

Progress at September 2022: No change to cost or timing since the last report (as reported in March 2022 update, Reston Station entered service in May 2022 with East Linton Station in construction and planned to be operational by March 2024).

Progress at March 2023: No change to timing since the last report.

The overall Anticipated Final Cost (AFC) is now estimated to be £36.6 million to £38.2 million. This increase is due to unforeseen construction challenges with East Linton Station and a contractor claim in relation to the completed works at Reston Station which is currently being evaluated.

Contact for public enquiries: email: info@transport.gov.scot

Project: Levenmouth Rail project

Business case approved stages: Scheme will re-open the disused rail line between

Thornton junction and Leven in Fife, providing new passenger rail services to connect the Levenmouth area to Fife, Edinburgh, and the wider rail network. The OBC was predicated on a project cost estimate of £70 million and it is estimated to be operational by December 2023. The FBC was predicated on an anticipated final cost of £116 million and an estimated operational date of spring 2024.

Progress at September 2022: No change to cost or timing since the last report (as reported in March 2022 update, the approved FBC reflected an expanded scope and additional investment and that the project commenced construction).

Progress at March 2023: No change to cost or timing since the last report.

Contact for public enquiries: email: info@transport.gov.scot

Project: Inverness Airport Station

Business case approved stages: Project will provide a greener method for people to travel to Inverness Airport and help to enable transition to Net Zero Emissions and Environmental Sustainability. The FBC outlined that the project was estimated to cost £39.6 million and that it is planned to be operational in December 2022.

Progress at September 2022: No change to timing since the last report.

The total cost is now estimated at £41.8 million which is an increase to that at FBC and is due to final costs now incorporating increased construction inflation. The project is in construction and is progressing to programme.

Progress at March 2023: No change to cost since the last report.

Construction is now complete, and the station officially opened on 2 February 2023 with passengers using the new facility the following day. This was later than that outlined in FBC and was due to issues in obtaining a permanent electrical supply.

Contact for public enquiries: email: info@transport.gov.scot

Project: Barrhead Rail Enhancement

Business case approved stages: Project is part of the East Kilbride and Barrhead Rail Enhancement scheme. This scheme is to decarbonise the corridors and to provide improved access to the rail network for the communities along these corridors. The scheme will make rail services reliable, efficient, and attractive to passengers and support modal shift whilst progressing against Scottish Government’s target to decarbonising the rail network. The FBC outlined that the total project cost was estimated to be £63 million and was planned to be operational in December 2023.

Progress at September 2022: No change to cost or timing since the last report (as reported in March 2022 update, the project commenced construction in April 2022 and is progressing to programme).

Progress at March 2023: No change to cost or timing since the last report.

Contact for public enquiries: email: info@transport.gov.scot

Project: East Kilbride Rail Enhancement

Business case approved stages: Project is part of the East Kilbride and Barrhead Rail Enhancement scheme. The scheme will make rail services reliable, efficient, and attractive to passengers and support modal shift whilst progressing against the Scottish Government’s target to decarbonising the rail network. The OBC outlined that total project cost was estimated to be £100 million to £120 million and that it was estimated to be operational December 2024.

Progress at September 2022: No change to cost or timing since the last report (as reported in March 2022 update, the total project cost is estimated at £111 million to £124 million which includes additional scope).

Progress at March 2023: No change to timing since the last report.

The total cost of the project is now estimated at £136.8 million which is an increase in that previously reported. This is due to further refinement of the Full Business Case (FBC) cost and additional scope of the Hairmyres Loop extension and accessibility enhancements.

The project went to Transport Scotland’s Investment and Decision Making Board (IDM) in November 2022 and instruction was given to provide further assurance on the programme and the cost. Network Rail is working through providing further details to Transport Scotland and this should be finalised in the coming months. The project will then return to IDM Board prior to being provided to the Minister for Transport for endorsement.

Contact for public enquiries: email: info@transport.gov.scot

Project: Borders Railway Decarbonisation

Business case approved stages: Project to facilitate the decarbonisation of rolling stock emissions on the Borders Railway through the installation of railway electrification infrastructure. This infrastructure will allow the replacement of the diesel rolling stock which currently operate on the route with new Battery Electric rolling stock. The OBC outlines that the total project cost is estimated to be £32 million and that the project is estimated to commence construction in 2023 and be operational in May 2027 (£14.4 million of total project cost is attributable to the Tweedbank Feeder Station inclusion within report).

Progress at September 2022: The OBC outlines that the total project cost is estimated to be £32 million and that the project is estimated to commence construction in 2023 and be operational in May 2027. The project is in procurement and progressing to programme.

Progress at March 2023 : The Decarbonisation Action Plan is due for a refresh during 2023. The outcome of this will allow for the project to be replanned and timescales will be determined by the wider pipeline programme and the rolling stock procurement exercise.

Contact for public enquiries: email: info@transport.gov.scot

Project: Fife Decarbonisation

Business case approved stages: Project to facilitate the decarbonisation of rolling stock emissions on the Fife Railway through the installation of railway electrification infrastructure. This infrastructure will allow the replacement of the diesel rolling stock which currently operate on the route with new Battery Electric rolling stock. The OBC outlines that the total project cost is estimated to be £210 million with the full project estimated be operational in December 2025.

Progress at September 2022: The OBC outlines that the total project cost is estimated to be £210 million. The Haymarket to Dalmeny section was approved to FBC in March 2022, with a total cost of £55.6 million and construction in this area has commenced with a completion date of December 2024. The full project is estimated to commence construction in early 2023 and be operational in December 2025. The project is in design / procurement and progressing to programme.

Progress at March 2023: The Decarbonisation Action Plan is due for a refresh during 2023. The outcome of this will allow for the project to be replanned and timescales will be determined by the wider pipeline programme and the rolling stock procurement exercise.

Contact for public enquiries: email: info@transport.gov.scot

Project: Markle Level Crossing Bridge Replacement

Business case approved stages: Closure of Markle Level Crossing (in East Lothian) on the East Coast Main Line and its replacement with an overbridge. The OBC outlines that the total project cost is estimated to be £9.2 million and that the project is estimated to be operational by the end of March 2024.

Progress at September 2022: Project not included within previous update as negotiations with East Lothian Council to proceed with implementation of the scheme were not concluded at the previous reporting date.

Progress at March 2023: The project is in design and progressing to programme and estimated to commence construction in June 2023.

Contact for public enquiries: email: info@transport.gov.scot

Project: CMAL - Two new 100 metre ferries

Business case approved stages: Procurement commenced and Pre-Qualification

Questionnaires were issued by CMAL (Caledonian Maritime Assets Ltd) on 15 October 2014 with tender returns on 31 March 2015 and the Preferred Bidder announced on 31 August 2015. The contract worth £97 million to build the two 100m ‘dual-fuel’ ferries for the Clyde and Hebrides Ferry Service (CHFS) was awarded on 16 October 2015. The first ferry was expected to be delivered in May 2018 with the second vessel following a few months later.

Progress at September 2022: The Chief Executive Officer (CEO) of Ferguson Marine wrote to the Scottish Government and the Net Zero, Energy and Transport Committee in late September setting out his proposals relating to the cost estimates and timetable for delivering both vessels. In his update, the total estimated cost to complete is now £202.6 million (including £6.2 million contingency). The Scottish Government has not agreed to an increase in funding for Ferguson Marine since the 23 March 2022 letter to MSP’s setting out delivery costs. The Scottish Government is currently undertaking its own due diligence, which is being supported by external, independent financial advisors to ensure that a rigorous approach is taken to scrutinising this request for additional funding.

The CEO has reported that delivery of 801 remains within the delivery window of March to May 2023, with Liquefied Natural Gas (LNG) commissioning due in May 2023. Ferguson Marine have indicated that the delivery of 802 is now forecast to be between January and March 2024. This is later than previously reported and Ferguson Marine attribute this to a change of approach with design consultants for the remainder of the 802 construction, and to allow lessons learned from the build of 801 to be implemented successfully.

Progress at March 2023: No change to cost since the last report.

On 16 May 2023, the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy made a statement to Parliament on the due diligence review of the revised cost to complete estimates provided by Ferguson Marine Port Glasgow (FMPG) in September 2022 (£202.6 million (including £6.2 million contingency)) to deliver vessels 801 and 802.

The statement confirmed commitment to delivery of both vessels at the FMPG yard and that the value for money case had been made for vessel 801 (MV Glen Sannox). However, the case for vessel 802 was more challenging and the narrow value for money case had not been made. A Written Authority has been provided to the Accountable Officer to continue 802’s funding. The statement also made clear that FMPG should do everything possible to improve productivity, maximise operational efficiency and ensure that there is a tight control on costs as well as having a focus on delivering the vessels as quickly as possible.

The Chief Executive Officer (CEO) of FMPG updated the Scottish Parliament's Net Zero, Energy and Transport Committee on 16 March 2023 by setting out revised delivery dates for vessels. Hull 801 is now expected autumn 2023 with the backstop contract date by 31 December 2023. This is later than previously reported and is due to the CEO indicating that the revised schedule is to address design gaps and build errors, some dating back over many years. Hull 802 is expected late summer 2024 with the backstop contract date by 31 December 2024. This is also later than previously reported and is due to the focus on the completion of 801.

The statement by the Cabinet Secretary confirmed acceptance of the updated delivery dates set out by the CEO on 16 March 2023.

Contact for public enquiries: email: alistair.thomson@transport.gov.scot