Agenda item

            The Committee considered the undernoted report:

“1.0      Purpose of Report or Summary of main Issues

1.1       To update Committee on the progress of the Belfast Region City Deal (BRCD). 

2.0       Recommendations

2.1       The Committee is asked:

·        To note the governance and programme arrangements that have been put in place to support the development of the next phase of the BRCD which includes the production of  an implementation plan and funding agreement for the delivery of the BRCD programme and associated projects

·        To note the next steps on the development of the SOC for the Dublin Rail Connectivity and Economic Corridor.

·        To approve the next stages in the delivery of the Belfast Destination Hub including;

-       the establishment of a robust governance structure; the production of a Treasury compliant green book appraisal; development work on potential site identification and a communications plan and

-       the recruitment of a Project Director to lead the development and delivery of the project

3.0       Main report

3.1       Members will be aware that a major programme to enable the development of the Belfast Region City Deal (BRCD), in accordance with the requirements of the Ministry for Housing, Communities and Local Government (MHCLG), resulted in the submission of the BRCD proposition document to NIO and UK government on 30th September 2018.  The proposition outlined approximately 22 projects across the investment pillars of Digital / Innovation, Infrastructure and Tourism led Regeneration underpinned by a significant employability and skills programme, which will provide inclusive job opportunities and significantly enhance the region’s economy.

3.2       As a result, in his budget on 29th October 2018 the Chancellor announced a commitment of £350m from UK government, levering at least £350m from NI regional government, £100m from the BRCD councils and £50m from the two universities to deliver the proposed BRCD programme.  This provided a starting funding package of £850m which will be further enhanced by at least £150m private sector investment, providing the BRCD with a 10 year £1billion Programme of Investment. 

3.3       At the March Committee Members approved the BRCD Heads of Term document which set out the funding commitment for the £850m investment Programme announced by the Chancellor and reflected the programme of investment presented in the BRCD proposition document.

3.4       This document was then signed by both governments, the six councils and the two universities, allowing work to progress on the next phase of the development of the programme.

            Programme Development - Progress to Date

3.5       A key element in developing the BRCD Programme was the governance structures that were put in place to support partnership working and effective decision making at both individual council level and collectively across the programme.  This included a Joint Council Forum, comprising Councillors from all six partner Councils and a Programme Board with senior representation from all the partners.  These structures have been built upon to support the next phase of delivery with Advisory Boards created for each of the Pillars of Investment to oversee and support the development of Outline Business Cases (OBCs) for each of the BRCD projects.

3.6       Significant resources have been committed by all the partner organisations to support the development of the overall programme and individual OBCs.  As the accountable body BCC has put in place a programme office which will work across the partnership and with UK Govt and NICS departments to deliver the key documents required for this phase which are 

·        A Financial Plan and Agreement

·        A Deal Document- detailed document covering all elements included within Heads of terms, including Governance Framework

·        An Implementation Plan- summarising milestones for key deliverables, outputs, resources and risk mitigation for each project

·        Outline Business Cases (OBCs) for the individual BRCD projects

3.7       The BRCD programme office will also support the overall management and delivery of the programme as well as developing internal frameworks in areas including;

·        Governance and Decision Making

·        Financial Planning and Management

·        Programme and Project Management

·        Performance Monitoring and Assurance

·        Communication and Engagement

3.8       Given the scale of the five proposed Innovation projects, the two universities have established a joint programme office to oversee their development and delivery.  Based at QUB this programme office not only demonstrates their commitment to the projects but also to the partnership between the two universities and maximising the benefits across the innovation investment pillar.

3.9       The Belfast Met and FE colleges who are leading on the Employability and Skills Programme are about to recruit a Programme Manager to support the development of this pillar.  The post will be funded by the colleges and will be located in the BRCD Programme Office in BCC.

3.10      In addition the Fraunhofer Institute which is leading the way in digital innovation and smart districts / testbeds, have been appointed to develop an implementation plan for the Digital element of the deal. 

3.11      The final Investment pillar of Infrastructure is being led by DfI, given they will be solely responsible for the delivery of the projects.  As with other strands, BRCD partners will be represented on the Board and progress will be reported in through the current governance structures.  A key infrastructure project for the Belfast City Region, which will enhance and compliment the BRCD programme, is the development of the Dublin Rail Connectivity and Economic Corridor.   In January 2019 the City Growth and Regeneration Committee approved the commissioning of a ‘Stage 2 Strategic Outline Business Case’ for an improved rail network between Belfast and Dublin offering 60 minute journey times, improved level of service and significant improvements in air quality and long term environmental impact.   Members are asked to note that funding will be matched from private and public contribution to progress the Strategic Outline Business Case with an expected completion of the work in October 2019. Belfast City Council contribution will be meet from within current departmental budgets in line with previous approvals.   

3.12      Belfast Destination Hub

            BCC is also putting in place specific resources to progress the Destination Hub, which is a key project under the tourism strand of the deal. Within the BRCD, the Destination Hub mirrors the ambition of the Belfast Agenda to a deliver a second world-class visitor attraction to generate additional tourist spend and footfall in the city centre. The Destination Hub proposal is for a single site in the city centre incorporating a range of facilities including the ‘Belfast Story’ visitor destination, a Northern Ireland film centre, gallery and exhibition space and a digital media/skills training facility. 

3.13      Members will recall at its meeting 17th August 2018 the project moved from Stage 2 – Uncommitted on the Capital programme and an Outline Business Case was completed.  The UK Treasury has now published it’s guidelines on the required Green Book economic appraisals required for each project within the Infrastructure, Tourism, Regeneration and Employability and Skills BRCD pillars – including the Belfast Destination Hub.  In line with Treasury recommendations, and in recognition of a project of this scale, scope and complexity, it is now necessary to move forward with a new phase of development that comprise of a number of work strands. Currently this includes the establishment of a robust governance structure with strategic partners such as Tourism NI, NI Screen, National Museums of NI and the Department of Finance; the production of a Treasury compliant green book appraisal; development work on potential site identification and a communications plan to include further concept development with a strategic communications framework.  To deliver a project of this magnitude for the city and the region, it will be necessary to allocate the necessary resources to deliver the work strands and for the appointment of a Project Director on a three year fixed term contract to drive the project forward. Members should note that all costs associated with these work strands and the appointment of a Project Director are to come from existing resources.

3.14      Next Steps – Member Engagement

            As with phase 1 of the Programme individual councils will be responsible for all decisions relating to investment in their individual projects and in Belfast SP&R will continue to receive regular updates on the both the council’s projects and the overall programme.  Members from all six councils will also continue to meet through a Joint Members’ Forum and it is proposed the next meeting of this will be held in September 2019.  Proposed arrangements for this meeting will be brought to the August Committee meeting.

3.15      Financial & Resource Implications

            All costs associated with the BRCD are within existing budgets.

3.16      Equality or Good Relations Implications/Rural Needs Assessment

            The Approach taken to develop the City Deal has been subject to independent equality screening and rural proofing and states that;

            BRCD is inherently inclusive, affording an opportunity for the region to grow in a way that will benefit the economy of Northern Ireland as a whole, thereby enhancing the lives and well-being of its citizens. If during further development of the programme it becomes apparent that there may be an adverse impact on certain groups or communities then the partnership commits to carrying out further Section 75 work and including screening and EQIAs as and when appropriate.”

            The Committee adopted the recommendations.