A case study in the Government's Infrastructure and Projects Authority (IPA) newly released  Annual Report on major projects for 2015-16 has flagged up the £4.2 billion Thames Tideway Tunnel as as a benchmark for the development of future major UK infrastructure projects.

In a case study on the Tideway Tunnel in the report, one of TTT’s investors Gavin Tait, director of Amber Infrastructure described the private/public engagement on the project as setting a benchmark for the development of all future major UK infrastructure projects

The IPA, which was formed in January 2016 by the merger of Infrastructure UK (IUK) and the Major Projects Authority (MPA), is the government’s centre of expertise for project development, project financing, project assurance and project support.

The IPA is required to produce an Annual Report on the Government Major Projects Portfolio (GMPP). This is the fourth Annual Report - the three previous reports were published by the MPA.

Introducing the Report, Tony Meggs Chief Executive of the Infrastructure and Projects Authority said that the report provides clear evidence of the beneficial effects of project oversight through the GMPP- however,  there are still too many projects which remain in the low delivery confidence range for too long. The IPA now has a number of a number of initiatives underway which are designed to improve performance over time.

“Early intervention – the initiation of projects is critical to their ultimate performance; it is hard for a project or programme to succeed if it has not been set up in the right way. It means creating seamless integration between policy formulation and policy delivery. We have made progress in helping projects in the early stages, developing new tools to assist with project initiation.” Tony Meggs said.

The most comprehensive of these tools is the Project Routemap, developed by IUK for large infrastructure projects. The IPA is now intending to broaden its application to more project types in the GMPP.

The Authority has also started to analyse the findings of the more than 1,000 project assurance reviews that have been conducted over the last four years or so. This provides a valuable insight into issues affecting the progress of major projects over their lifecycle, and lessons that can be used by other projects to improve their likelihood of successful delivery.

The Government Major Projects Portfolio(GMPP) is composed of the largest, most innovative and highest risk projects and programmes in government. Major projects on the GMPP are those where the project needs HM Treasury approval, either because the proposed budget exceeds a department’s delegated authority level or because the project is novel, contentious, potentially sets a precedent or requires primary legislation.

At 30 September 2015 the GMPP contained 143 major projects representing a £405 billion investment over the next 25+ years consisting of:

• Infrastructure and construction - 29 projects worth £172bn
• Government transformation and service delivery - 53 projects worth £116bn
• Military capability - 25 projects worth £102bn
• ICT - 36 projects worth £16bn

The projects vary greatly in size and scope - illustrated by the case studies in the report which describe the Thames Tideway Tunnel (DEFRA), the National Proton Beam Therapy Service Development Programme (Department of Health), and Crossrail (Department for Transport).

Tideway Tunnel: on track thanks to excellent working relationship between the IPA, DEFRA and private sector partners

The case study in the report on the Thames Tideway Tunnel  explains that the TTT is being financed and delivered by the private sector, but the project is being managed by DEFRA who are helping to ensure the legal and commercial frameworks are in place so that the project is successful.

The report says the project is on track, thanks to an excellent working relationship between the IPA, DEFRA and various private sector partners.

John Bourne, TTT’s Project Director from DEFRA said:

‘It’s been a team effort since the project started, from the first ministerial agreement in 2007 to the completion of the financial arrangements in August 2015 which allowed construction work to begin. The project successfully brought together a wide range of expertise: financial, legal, technical, insurance and regulatory. This partnership approach has helped create the conditions for success, managed the risk and reduced the cost to the taxpayer.’

TTT: learning from other projects

According to members of the project team, the opportunity to learn from other projects for the benefit of TTT was key to the project’s success. The team drew on lessons from Crossrail and HS2, and also benefited from senior people moving onto the project at appropriate stages.

Former Senior Responsible Owner (SRO) for TTT, Sonia Phippard said: ‘The core team overseeing the TTT project in DEFRA was small and the support provided by IUK and the MPA was essential. This included a long-term secondment from IUK to provide ongoing expert input into the financial arrangements as they evolved, and regular assurance reviews organised by the MPA that provided specialist input into how to overcome the challenges as the project developed.’

One of TTT’s investors Gavin Tait, director of Amber Infrastructure described the private/public engagement on the project as setting a benchmark for the development of all future major UK infrastructure projects, commenting:

‘The contribution of the DEFRA team, supported by an excellent IUK team, extended far beyond the practical necessities of forming an appropriate government support package. The active and pragmatic approach adopted by them to potential investors in TTT was key to the success of getting this project financed.”

Learning legacies for sharing knowledge and best practice

The IPA Report also flags up ‘learning legacies’ -  bodies of knowledge and specific good practice that project teams build up over the life of a project. The best known of these is the Olympic Learning Legacy launched by the Olympic Delivery Authority in 2011. The Olympic Learning Legacy was published online so the learning is accessible for all projects and organisations to use without cost. Previously such information would have been held within the project and its organisation and not shared more widely.

In February 2016 the Crossrail Learning Legacy opened  with the project committed to sharing its learning throughout its life cycle, not just when the project has been finished. The Learning Legacy provides recent and ongoing examples of good practice in construction and other areas of project delivery through a website available to all project professionals both across government and externally.

The Report says the IPA fully supports Crossrail’s approach to sharing learning with the construction sector, particularly with major UK PLC projects. The Department for Transport’s Crossrail Sponsor Team recently conducted a cross-programme governance review that demonstrated that other projects, such as HS2 and the Thames Tideway Tunnel, have already learnt from Crossrail. This best practice will continue to be shared to benefit future major investment programmes.

Tony Meggs said:

 “The IPA is wholly committed to ensuring that the UK delivers major infrastructure projects efficiently and effectively.”

“The creation of a learning environment is vital to improving project performance, and we see Crossrail’s Learning Legacy as an impressive example of best practice. We encourage all project professionals both within government and outside to draw on this excellent resource; the more we can learn from the experience of others, the closer we will come to flawless project execution.”

Click here to download the IPA Annual Report on Major Projects 2015 to 2016

Click here to access the Crossrail Learning Legacy website

Click here to access the Olympic Delivery Learning Legacy website