Key information
Decision type: Director
Reference code: DD2054
Date signed:
Decision by: Fiona Fletcher-Smith, Executive Director of Development, Enterprise and Environment
Executive summary
This Director Decision has been prepared to seek approval to develop a Strategic Infrastructure Investment Programme for London, in order to better prioritise infrastructure investment throughout the Capital, increase certainty and provide an evidence base to support investment and planning decisions.
The project will build upon work undertaken developing the London Infrastructure Plan 2050, and will provide a single programme view of London’s infrastructure requirements that is responsive to future challenges and opportunities. Currently there is no mechanism that allows for infrastructure investments to be prioritised or assessed in relation to each other, which compromises London’s ability to secure the investment in infrastructure it requires and plan for growth effectively. This programme will seek to address this gap, and will respond to stakeholder requests that such a programme is developed.
The project will be supported by strong engagement with London’s infrastructure community, and will involve development of two working groups to ensure the project meets stakeholder requirements. In order to support development of the programme, a budget of £100,000 is required, which will be directed towards technical support and advisory services. This budget is available under the Infrastructure Investment Plan budget allocated for 2016/17.
Decision
The Executive Director approves the:
1. Development of a Strategic Infrastructure Investment Programme for London; and
2. Expenditure of £100,000 from the Infrastructure Investment Plan 2016/17 budget to secure technical input and advisory services to develop the programme.
Part 1: Non-confidential facts and advice
1.1. London is growing and has substantial capital investment requirements to meet the demand presented by growth over the medium and long term.
1.2. In 2014, the GLA released the London Infrastructure Plan 2050 (MD 1294); the first time such a plan had been developed for the Capital. The plan acts as a strategy document highlighting the scale of London’s infrastructure challenges and options for resolving these challenges; however it does not prioritise investment or develop a programme for delivery, presenting challenges for coordination, funding and planning. As such there is a need to develop a mechanism or process that will allow for projects to be appraised relative to each other to ensure that projects are committed to which meet strategic goals and benefit London.
1.3. It is therefore proposed to develop a Strategic Infrastructure Investment Programme for London (SIIP), which considers projects across the key infrastructure sectors. Such a programme will be responsive to the challenges London faces – population growth, competition from other global cities and environmental threats which could undermine the economy and/or quality of life. The programme will also contribute to an evidence base that will support opportunities presented by potential fiscal devolution and increased Government spending on infrastructure in the wake of the EU referendum result. Development of such a programme is also supported by stakeholders, who view it as a natural progression from the London Infrastructure Plan.
1.4. To support development of the SIIP it is proposed to allocate £100,000 from the Infrastructure Investment Plan Budget within the Economic Business Policy Unit (Development, Enterprise and Environment Directorate) to secure technical input and advisory services. Budget is available to commit to this project. Such services are necessary in order to deliver the project in a timely manner and develop a robust methodology to undertake the assessment that meets the Mayor’s requirements and those of stakeholders involved in delivering London’s infrastructure. The proposed budget has been identified based on a review of previous services provided in developing the London Infrastructure Plan and associated pieces of work.
1.5. The SIIP will also be supported by the establishment of two working groups. A technical advisory group, made up of leading infrastructure experts from across the field, and a utility working group, made up of London’s infrastructure providers across the key sectors.
1.6. It should be noted that the intention is for the programme to focus on the same sectors which the London Infrastructure Plan covered: water, energy, digital, transport, waste and green infrastructure; due to the importance of these sectors in supporting land use. Separate processes are underway within the GLA targeting social infrastructure such as schools, health and cultural infrastructure.
2.1. Development of the SIIP will serve a number of purposes – it will help to align investment decisions and increase certainty, and will provide an evidence base that better positions the Mayor to secure the investment in infrastructure that London requires to remain a successful and competitive global city.
2.2. The SIIP will provide a mechanism through which infrastructure investment proposals can be assessed against baseline criteria. This criteria will be developed with input from London’s infrastructure providers and an expert advisory group, and provide a robust process that allows for investment to be appraised on a level playing field (rather than a first come, first served basis).
2.3. The SIIP will allow for projects to also be considered on a strategic or interconnected basis. The SIIP will allow for packages of infrastructure investment to be identified to support growth, and reduce the likelihood of stranded assets or housing being delayed by infrastructure deficits. Identification of such packages of investment will support land use planning in the capital, including the review of the London Plan, and support prioritisation of the opportunity areas and other growth locations.
2.4. A final programme will be used as a piece of evidence to support certainty regarding growth and arguments for increased investment in infrastructure from Government and/or through the regulatory process. It will also act as an evidence base to support the Mayor’s push for fiscal devolution.
2.5. Data collected on future infrastructure projects will be included in the London Infrastructure Mapping Application.
3.1. The SIIP will deliver improvements in how infrastructure investment is planned and prioritised in the capital, which will have benefits for all Londoners, including those with a protected characteristic.
3.2. The SIIP will be responsive to Mayoral priorities, including social inclusion and fairness (these could be included as part of the assessment criteria being developed), and a social inclusion expert will be included on the advisory group supporting this project.
4.1 Key risks and issues analysis
4.2. Outputs from the SIIP will inform Mayoral strategy development, and development of this programme is early enough in the strategy development cycle to ensure that recommendations can be integrated into strategies.
Approval is being thought for the allocation of £100,000 from the Infrastructure Investment Plan 2016/17 to secure technical input and advisory services to develop the Strategic Infrastructure Investment for London programme, as underlined in the body of this report.
The funds will be available from the Infrastructure Investment budget held under WBS GE.0382.002 within the Economic Business Policy Unit (DE&E Directorate) and all associated costs will be charged to this code.
It should be noted that any changes to this proposal, including budgetary implications will be subject to the Authority’s decision-making process.
6.1 The foregoing sections of this report indicate that:
6.1.1 the proposals in respect of which the Director’s approval is sought may be considered to fall within the GLA’s powers to do such things as are facilitative of or conducive to the fulfilment of its principle purposes;
6.1.2 in formulating the proposal in respect of which a decision is sought officers have complied with the GLA’s related statutory duties to:
(a) pay due regard to the principle that there should be equality of opportunity for all people;
(b) consider how the proposals will promote the health of persons, health inequalities between persons and to contribute towards achievement of sustainable development in the United Kingdom; and
(c) consult with the appropriate bodies.
6.2 In taking the decisions requested, the director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and persons who do not share it and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the director should have particular regard to section 3 (above) of this report.
6.3 Officers must ensure that:
6.3.1 the services required are procured by Transport for London Procurement who will determine the detail of the procurement strategy to be adopted in accordance with the GLA’s Contracts and Funding Code and appropriate contract documentation is put in place and executed by the GLA and providers before the commencement of such services; and
6.3.2 appropriate steps are taken, by way of the SIIP Advisory Group terms of reference and such other measures as are considered necessary to mitigate and manage risks of any perceived conflicts of interest of any member of the SIIP Advisory Group arising.
Signed decision document
DD2054 Developing a SIIP for London (signed)