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Annual Report on Major Projects 2021 to 22

Published 20 July 2022

Ministerial foreword

We are committed to delivering the Prime Minister’s manifesto promise to encourage economic growth, national renewal and greater productivity with a new programme of infrastructure building. Major projects and programmes can make a valuable contribution to our economy and the Infrastructure and Projects Authority plays a crucial role in making this a reality.

In the wake of the coronavirus (COVID-19) pandemic, major projects will pave the way for services that are fit for the modern economy. These range from London’s new Elizabeth Line, originally envisaged by the Prime Minister, which will support 55,000 jobs and is forecast to boost the UK economy by £42bn, to the Schools Rebuilding Programme, which will replace poor condition buildings in 500 schools over the next decade.

These are just two examples of how we are achieving our long-term vision for UK infrastructure and fostering growth in skilled and innovative parts of the economy. Both of these projects have been delivered using modern methods of construction, with new technologies which are more efficient and sustainable to use. At a time of rising prices, particularly in construction, it is essential that we develop new infrastructure as efficiently as possible.

Major infrastructure projects will help the UK meet its commitment to reach net zero emissions by 2050. For example, the Department for Business, Energy and Industrial Strategy’s CCUS Innovation Programme will see novel technology developed which will reduce the cost of deploying carbon capture, usage and storage. These projects are also essential for guaranteeing the safety and upkeep of critical infrastructure sites such as Sellafield in Cumbria, where many of the facilities are ageing and new provisions are required, as the site’s mission changes from reprocessing to decommissioning.

However, we are not just spending taxpayers’ money on infrastructure; we are also delivering a number of critical transformation, ICT and defence projects. The Ministry of Defence has the largest presence on the Government Major Projects Portfolio (GMPP), supporting our commitment to maintaining and safeguarding national security. One example of this is the Dreadnought Programme, which will see four large submarines produced in the UK for the Royal Navy. This will provide around 30,000 jobs, play a pivotal role in the defence of the realm, and support the levelling up agenda by boosting the economy in the North West of England.

We expect the GMPP to deliver over £700bn of benefits, and we are pleased to see that 14 major projects and programmes have moved off the GMPP this year after successful completion. The IPA’s determination to build professional expertise and better capability in Government project delivery has been an important factor in delivering against the GMPP’s priorities over the past 12 months. Investing in people and human capital will ensure that government- backed projects are set up for success, ensuring that infrastructure will be built more efficiently.

These major projects and programmes allow us to meet our ambition of being smarter and more efficient in everything we do, but perhaps more importantly than that, in the real world, they save lives, change lives and provide a better future for all.

The Rt Hon Jacob Rees-Mogg MP Minister of State at the Cabinet Office

CEO foreword

Our ambition to deliver world-class projects and programmes has never been more important.

Over the past year, the country has continued to feel the pressures of the coronavirus pandemic and so it remains vital that we deliver on the services that the country so vitally needs. These will not only help the UK to recover economically, but will also change the lives of everyday citizens, and will put the country at the forefront of innovation, digital and sustainability.

Government’s project delivery reforms aim to do this in a number of ways. For example, over the past year, we have refocused our approach to proactively intervene in and support GMPP Tier A projects, as a direct result of our move to a three-level Red- Amber-Green (RAG) stage gate assessment. Alongside this, we are introducing policies that drive both government and industry to think more innovatively in their methods of delivery, and providing tools that establish a consistent approach to successfully progressing through the project stages.

Most importantly though, we are investing in our people, building project expertise and leadership skills to ensure our projects are set up for success from the outset. The Government Project Delivery Academy offers those working in the profession a central platform to access this learning, ranging from core online courses to our world-class Major Projects Leadership Academy. We have also launched the Government Project Delivery Accreditation scheme, which qualifies project delivery professionals working across government to an industry-aligned standard.

We are also strengthening the support and tools we provide to departments with our new Government Project Delivery Framework, which establishes a consistent set of expectations on what needs to be done to progress through each stage of the project. Other examples of these critical tools include the Government Functional Standard on Project Delivery, the Green Book Infrastructure Business Case International Guidance, the Project Routemap suite, and our new guidance on Preparing for PFI Contract Expiry. These are just a few of the ways we are collectively working across government to transform the delivery of government’s major projects and programmes.

On our infrastructure projects specifically, this year we have made positive steps with implementing our Transforming Infrastructure Performance programme. This has been through embedding critical thinking around how we embrace net zero, modern construction methods and new technologies, so that project outcomes are fit for our ever-changing world.

It is essential that both government and industry are aligned in our vision, and so we need to continue to be rigorous and ambitious in transforming the project delivery landscape. The positive measures we have taken over the past year to upskill our people, improve processes and drive better performance have set a solid foundation and are paving the way for this to become a reality. All of us in project delivery have the chance to make real change and provide a better future for citizens of the UK. I look forward to seeing that happen.

Nick Smallwood Chief Executive, IPA

The Government Major Projects Portfolio

The Infrastructure and Projects Authority

The Infrastructure and Projects Authority (IPA) is the government’s centre of expertise for infrastructure and major projects. It sits at the heart of government, reporting to the Cabinet Office and HM Treasury (HMT). The IPA works across government to support the successful delivery of all types of major projects, ranging from railways, roads, schools, hospitals and housing, to energy, telecommunications, defence, IT and major transformation programmes.

Our purpose is to continuously improve the way the government delivers projects and programmes and to provide confidence that they will achieve their aims, improve public services and people’s lives. As part of this, the IPA drives the development of the project delivery profession, and of the world-class skills and expertise needed to meet our ambition for nothing less than world-class delivery.

The Government Major Projects Portfolio

The Government Major Projects Portfolio (GMPP) ensures robust oversight of the government’s most complex and strategically significant projects and programmes. The GMPP comprises the largest, most innovative and highest risk projects and programmes delivered by government. GMPP projects are typically those where approval is required from HMT, either because the budget exceeds a department’s delegated authority level and/or because the project is novel, complex, contentious, or requires primary legislation. While the GMPP spans many of the government’s most high-profile projects, it represents a subset of the projects delivered across government.

Projects on the GMPP receive independent scrutiny and assurance from the IPA. Expert teams in the IPA also give specialist project delivery, commercial and financial advice, provide practical tools and make specific recommendations to help improve the chance of successful delivery. Projects on the GMPP are required to provide quarterly data returns on delivery progress. This data is used to monitor progress across the portfolio where risks and insights are shared with departments and the centre of government. This year’s GMPP snapshot comprises 235 projects with a total whole life cost (WLC) of £678bn and £726bn of monetised benefits that are delivered by 18 departments and their arm’s- length bodies.

GMPP projects fall into one of four categories, determined by the purpose and nature of their delivery.

• Infrastructure and construction projects include improving and maintaining the UK’s energy, environment, transport, telecommunications, sewage and water systems, and constructing new public buildings. These high investment projects are essential to the nation’s economic growth, development and prosperity prosperity and are prioritised accordingly across Government through the Project Speed agenda. An example of this is HMP Five Wells, which has been designed using modern methods of construction and with improved sustainability and green technology. This will create faster, cheaper and more efficient outcomes, and help cut reoffending and protect the public.

• Transformation and service delivery projects change ways of working to improve the relationship between government and the people of the UK, and harness new technology to improve public services and/or make government more efficient. This includes the Vaccines Task Force, which was set up in response to the COVID-19 pandemic to ensure that the UK population had access to safe and effective vaccines to save lives.

• Military capability projects are vital to the effective operation of the Armed Forces. They deliver the integrated concepts, training, personnel, structures, equipment, infrastructure, ICT and logistic support needed to enable the Armed Forces to maintain our national security. One such example is the Future Combat Air System, which is expected to combine a core aircraft with a whole network of new technologies, such as uncrewed aircraft and advanced data systems, designed to enter service from the mid-2030s.

• Information and communication technology (ICT) projects enable the transition from old legacy systems to new digital solutions to equip government departments for the future. ICT projects are very important for achieving cost savings and efficiency and ensuring our public services benefit from advances in innovation and technology. One example of this is the Emergency Services Mobile Communications Programme, which will replace the current Airwave service used by the emergency services in Great Britain (England, Wales and Scotland) with a new 4G-critical communications system.

Summary of the 2021-22 GMPP

The GMPP is an evolving portfolio that shifts in size and shape as projects join and leave. Since the 2021 Annual Report, the GMPP portfolio has grown from 184 to 235 projects, where 76 projects have joined and 25 projects have left the GMPP. Compared to previous years, this year had the second largest intake of new projects (see Figure 2). This influx of projects reinforces how IPA now places value on front-end loading. It follows a review into major project governance and ensures that rigorous oversight of project management and delivery is applied to all eligible projects meeting GMPP criteria. As a result, the GMPP portfolio increased both in size and cost (see Figure 2).

The GMPP over time

GMPP categories – number of projects, average project length and average whole life cost

Infrastructure and construction is the largest GMPP category in terms of ‘whole life cost’. Currently there are 70 ICT projects in the portfolio, up from 66 last year, with a total ‘whole life cost’ of £339bn, and total monetised benefits of £356bn. As with military capability projects, these projects are typically lengthier than projects in other categories (with an average duration of 11 years). Carbon capture, usage and storage & the Industrial Decarbonisation and Hydrogen Revenue Support scheme is an example of this.

Carbon capture

Usage and Storage Programme and the Industrial Decarbonisation and Hydrogen Revenue.

The Prime Minister’s 10 Point Plan for a Green Industrial Revolution committed the government to deploy Carbon Capture, Usage and Storage (CCUS) in two industrial clusters by the mid-2020s and an aim for four clusters by 2030. A cluster enables CO2 to be stored in deep porous rock formations beneath the seabed.

In October 2021, the government announced the Net Zero Strategy with its ambition to capture and store 20-30 MtCO2 per year by 2030, including 6 MtCO2 from industrial emissions and at least one CCUS-abated power station. The British Energy Security Strategy in April 2022 further announced that the UK ambition for hydrogen production would be up to 10GW by 2030, with at least half of this from electrolytic hydrogen, subject to affordability and value for money. The Department for Business, Energy and Industrial Strategy’s CCUS programme is delivering these commitments through the provision of £1bn of capital investment while the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) scheme will provide revenue funding over the longer term where needed. These major programmes will stimulate private sector investment and deployment of CCUS, by reducing investor risk and overcoming first-mover barriers among other market failures. They will also create thousands of new jobs and international trade opportunities with countries seeking to deploy similar solutions.

During 2021-22, the programme completed Phase 1 of its ‘cluster sequencing process’, announcing HyNet North West and the East Coast Cluster as the transport & storage organisations best suited to deliver the first two industrial clusters by the mid- 2020s (under ‘Track 1’ of the programme).

During 2022-23, the programme will announce the outcome of Phase 2 of its cluster sequencing process, which will determine which projects within, or that can feasibly connect to, the chosen Track 1 clusters, and will enter into negotiations for possible support. Further ahead, a Track 2 process will select and co-finance deployment of the third and fourth clusters by 2030, which are expected to contribute 10 MtCO2 per year to the government’s 2030 ambition.

IPA has supported the programmes through deployment of commercial, finance and project delivery expertise, facilitating an ‘opportunity framing’ workshop (to provide early scrutiny and challenge of the assumptions underpinning decision making) and conducting gateway assurance reviews.

There are several strands of work underway across government to support and improve the delivery of infrastructure and construction projects, all within the context of the Government’s Project Speed agenda. These include the publication of the UK’s first National Infrastructure Strategy (NIS) in November 2020 (see IPA Annual Report on Major Projects 2020-21, section ‘Infrastructure Delivery’, page 26), the launch in April 2021 of the IPA’s Cost Estimating Guidance (see IPA Annual Report on Major Projects 2020-21, section ‘Capacity and Capability’, page 24), and the refresh of the IPA’s Transforming Infrastructure Performance (TIP) programme through publication of the TIP: Roadmap to 2030 – in September 2021^{[footnote 1]}.

IPA has provided us with expert independent challenge, which has helped to guide our thinking as we mature our business models and delivery plans. We see the IPA-embedded commercial advisor as a key part of our programme team.” Alex Milward, Director, CCUS

Schools rebuilding programme

The Department for Education’s School Rebuilding Programme was announced by the Prime Minister in June 2020. It launched with a commitment to replace poor condition buildings in 500 schools over the next decade. By September 2021 the programme had already begun construction on seven projects.

Every new building delivered by the programme will be net zero carbon in operation and lower energy use, better performing environments with natural ventilation, and more resilient to the effects of longer-term climate change. Key components of this strategy are increased insulation, better air tightness, green roofs with energy generating solar panels, flood resistant drainage systems and lower carbon emissions.

The programme is working hard to innovate and is at the forefront of using modern methods of construction to deliver school buildings, investing in the industry to support innovation. The programme is also delivering accelerated project timescales when compared to its predecessor programme (Priority School Building Programme).

An example is West Coventry Academy in Coventry. This expansive school site consists of 17 blocks, with significant condition needs across it. All existing blocks will be demolished and replaced by a new teaching block, including a sports hall. The buildings will consolidate the teaching accommodation on a much-reduced footprint, allowing the school to benefit more from its outdoor space across the site.

Another example of a transformation and service delivery project is the Single Trade Window (see following page).

I am absolutely delighted that we are now actually in the construction stage in our first wave of delivering 500 newly rebuilt schools. We have set ourselves some very ambitious and stretching targets in a highly volatile commercial environment, and the IPA review helped us up our game where we really needed to in a number of key areas.” Rory Kennedy, Director of Capital, Department for Education

Transformation and service delivery is the largest category by project number, totalling 89 projects this year. This is an increase on last year when there were 62 projects on the GMPP in this category, with many leaving after successful delivery (see IPA Annual Report on Major Projects 2020-21, page 18). Projects in this category have the second lowest average whole life cost (£1.4bn) and as a result it is only the third largest category in terms of total whole life cost (at £128bn). These projects have the second largest amount of reported monetised benefits, totalling £326bn. They are often shorter (6 years) compared to the other categories. The Schools Rebuilding Programme (below) is an example of this.

Single Trade window

The Single Trade Window (STW) will offer a simplified, digital and data-driven border trade experience for customers, making it easier to do business with the UK. This streamlines dealing with government at the border and better supports the varied departmental responsibilities around revenue, health and security. STW will save businesses time and money and will enable government to more efficiently and effectively manage UK border risk and trade. This will ultimately enhance the UK’s reputation for facilitating business and encourage investment.

IPA has worked with STW from the outset and has worked with borders’ strategy bodies to help place STW as the key programme delivering against the border strategy in the short and medium term. STW and IPA have worked hand- in-hand from the beginning to draw on best practice. IPA has worked with STW using in-house transformation and project delivery tools to help detail benefits, frame the strategic opportunity and outcomes, and ensure the programme is focused on its transformation-specific elements, as well as broader best practice.

STW has seen success by aligning itself against a clear strategic and policy picture that is owned across departments, and by bringing together leaders from across departments to support it. This has helped narrow the policy-to-delivery gap. Departments continuing to work in this way and actively engaging with the programme are critical to its success – STW’s governance and engagement activity is aligned to this need.

Military capability projects are some of the most complex and strategically important that the government delivers. Military capability is the second largest category in terms of total whole life cost (£174bn) and, in line with their scale, these projects are often lengthier than other categories, with an average forecast duration of 20 years. This year, there are 45 projects in this category. This is an increase on last year when there were 31 projects on the GMPP in this category. Military capability projects are reporting the lowest amount of monetised benefits (£7bn). This is because the principal purpose of the projects is to promote national security, the benefits of which are often hard to articulate in financial terms. All military capability projects are delivered by the Ministry of Defence (MOD). Future Beyond Line of Sight (SKYNET 6) is an example of this.

Future beyond line of sight (aka SKYNET 6)

SKYNET 6 is the future military satellite communication programme managed by the MOD, providing them with global strategic and tactical connectivity for the Armed Forces and other government agencies and allied nation partners. SKYNET 5 is the current satellite communication programme. The programme is constructed as three substantial inter-dependent projects to deliver MOD’s overall satellite communications capability, including Skynet 6A (SK6A), Service Delivery Wrap (SDW) and Skynet Enduring Capability (SKEC).

Defence operations are dependent on resilient and assured space communications. SKYNET has provided satellite communications services since the 1960s and is the longest- serving military satcom capability, globally.

SKYNET 6 will provide continuity of services for all military satellite communication requirements at the end of the SKYNET 5 Private Finance Initiative arrangement. The new provision is setting in place the necessary procurements to take the capability from 2022 into the 2040s. It will enable the UK to continue to play a significant role in global military operations and ensure continuity of service as the SKYNET 5 satellites reach the end of their lives. The first new satellite is already in production with Airbus Defence and Space and is on schedule and within budget for launch in late 2025 on a SpaceX rocket.

The ‘SKYNET 6 Enduring Capability’ is the future architecture to provide and operate satellite and ground services, providing durable space-based communications from 2028 onwards, including a new UHF satellite and several wideband, medium- sized militarised spacecraft.

Future services will be provided by a blend of these sovereign-owned satellites and commercial and allied partner assets, managed and coordinated by an integrated service delivery organisation. SKYNET 6 is forecast to cost £5bn over the next 10 years.

The IPA most recently reviewed the new project in 2021 and again in 2022, providing programme-level assurance and advice on PFI exit. The Senior Responsible Owner (SRO) and programme director are both currently on the IPA’s Major Projects Leadership Academy Programme (the programme director having transferred to the MOD from the IPA in 2021).

Information and Communications Technology (ICT) is the smallest category by number and value with 31 projects at a total whole life cost of £37bn, but it is still an important part of the portfolio with many projects in other categories having significant digital components. On average, these projects take 7 years to deliver. An example of this is the FCDO Hera Programme.

On 2 September 2020, the Foreign and Commonwealth Office (FCO) and the Department for International Development (DFID) merged to form the Foreign, Commonwealth and Development Office (FCDO).

The creation of the FCDO is focused on ensuring that the UK’s development and foreign policy are aligned and that decisions on development spending are taken in a way that reflects a coherent and unified set of priorities for our international policy.

The Department has a Transformation Portfolio (part of the GMPP) which governs this activity. Its objectives are to create an FCDO that is:

• Structured for success – the FCDO develops and optimises its processes and resources to set up and deliver priorities.

• Leading internationally – the FCDO enables better delivery of government’s international objectives at home and overseas.

• Enabled to deliver – the FCDO is modern, effective and delivers value for money.

• Investing in people – the FCDO is an employer of choice for talented people, they invest in people from all backgrounds and reflects the country we serve.

One of the key components of the Transformation Portfolio is the delivery of the new single enterprise finance and HR system – the HERA programme, a GMPP in its own right. HERA will integrate many aspects of the FCDO business operations, leading to greater efficiency, speed and customer satisfaction.

The HERA business case identifies key benefits to be delivered over a 10-year period. The business case was fully approved by FCDO, Cabinet Office and HM Treasury ministers in March 2021. The development and delivery of the new service is ongoing with the aim of delivering new capability into the business in two stages – mitigating the risk of change and ensuring continuity of service.

HERA is part of the Government’s Major Project Portfolio (GMPP) and is aligned with the Cabinet Office Civil Service Reform agenda to deliver the shared services platform for the UK Government overseas. The IPA has been supporting FCDO through regular gateway reviews – both at the strategic level and the readiness for service level. The IPA has also provided delivery support for the wider transformation portfolio, ensuring lessons can be learnt from other government departments and across industry.

GMPP departmental overview

The GMPP consists of projects from 18 departments with varying portfolio sizes. The Ministry of Defence (MOD) and Department for Transport (DfT) continue to make up half of the GMPP by whole life cost (50%) but no longer by number, as was the case in last year’s annual report.

MOD has the largest portfolio and the highest whole life cost by department. This year, there are 52 MOD projects on the GMPP, which account for over a fifth of the portfolio by number. MOD delivers all of the 45 military capability projects, as well as 5 ICT projects and 2 infrastructure and construction projects.

DfT has the joint third largest portfolio and the second highest whole life cost by department. Of the 22 projects that are led by DfT, 19 are infrastructure and construction projects, and 3 are transformation and service delivery projects.

Ministry of Justice (MOJ) has the second largest portfolio and the fourth highest whole life cost by department. Of the 24 projects that are led by MOJ, 6 are infrastructure and construction projects, 13 are transformation and service delivery projects and 5 are ICT projects.

GMPP summary by department – project number and whole life cost

The IPA is committed to supporting the development of increasingly mature and effective approaches to portfolio management in departments.

The Department for Business, Energy and Industrial Strategy (BEIS) is the fourth and final significant contributor to the whole life cost of the GMPP, accounting for a larger amount of cost than the next two departments, the Department of Environment, Food & Rural Affairs (Defra) and the Home Office (HO), despite having fewer projects. The Department for Work and Pensions (DWP) only has 6 projects on the GMPP, but these have a total cost of approximately £21bn.

There are several departments with multiple GMPP projects that are actively managed as part of wider portfolios. This is in line with the Government Project Delivery Functional Standard, which identifies that ‘a portfolio comprises part or all of an organisation’s investment required to achieve its objectives… such as other portfolios, programmes, projects, other work and work packages’.^{[footnote 2]} The Government Project Delivery Functional Standard sets the expectation that all departments will adopt a portfolio management framework to manage their major projects and programmes.

The maturity of portfolio management varies across departments. For example, Her Majesty’s Revenue and Customs (HMRC) has a well-developed central portfolio approach to govern major project investments, to actively manage resources and to adjust delivery priorities in response to changes in context. Other departments take a similar approach, with arrangements tailored to suit the nature of the portfolios and to dock with existing governance, accountabilities and responsibilities. Following on from last year’s ‘Lessons from transport for the sponsorship of major projects’, DfT has now implemented a central portfolio approach to managing its major projects. Other departments also manage clearly identifiable sub-portfolios. An example is the Department for Digital, Culture, Media and Sport (DCMS) who have several projects that collectively are part of the Building Digital UK Programme for delivering broadband networks to the nation.

In the above examples, a portfolio approach allows the departments to ensure that their particular mix of projects and programmes is helping to deliver their strategic objectives. The IPA is committed to supporting the development of increasingly mature and effective approaches to portfolio management in departments. Through a combination of tailored advice and support and the introduction of portfolio- level assurance tools, the IPA aims to help departments manage the totality of their major change, as well as delivering the individual projects successfully.

GMPP summary by department – project number and whole life cost

GMPP delivery confidence

A Delivery Confidence Assessment (DCA) is an assessment of the likelihood of a project delivering its objectives to time and cost. Ratings are categorised into three groups, which span a range from ‘red’ to ‘green’, with each providing an indication of likelihood of successful delivery and level of associated risks.

Detailed definitions of each rating can be found in Annex A.

DCAs are not a comprehensive reflection of project performance, but reflect a project’s likelihood of success at a specific snapshot in time if issues and risks are left unaddressed. Where a project receives active IPA support or has undertaken an independent IPA assurance in the last six months, the IPA will provide a DCA. For other projects, the DCA is provided by the Senior Responsible Owner (SRO).

DCAs change depending on the challenges projects are facing, the results of focused independent assurance reviews and actions taken by projects. By taking the right steps following reviews and managing delivery challenges effectively, DCAs are often improved over time.

At this year’s snapshot (end of March 2022), 24 projects were rated green (10% of the GMPP) and 27 projects were assigned red (11%) while 170 projects (72%) were rated amber.

As illustrated in Figure 5, in the 2021-22 snapshot there were around £62bn of whole life costs associated with projects rated red. Amber projects make up a large majority of the portfolio by project number and total whole life cost. Green projects make up about 5% of GMPP’s total whole life cost. To assess the overall health of the GMPP portfolio, the report uses the average DCA rating, which is calculated by attributing a mark from 1 (green) to 5 (red) and taking the average of these marks.^{[footnote 3]}

In this year’s report there are 27 projects rated as red, the highest level over the last ten years, but this is mostly due to the change from a five to three tier DCA ranking this year.

DCAs by project category

A small number of projects have also had major risks or issues apparent in key areas for a significant number of years, including the High Speed Rail Programme (HS2) and HM Courts & Tribunal Service Reform Programme.

In looking at this pattern of delivery confidence, it is important to acknowledge that GMPP projects are the government’s most difficult and challenging projects to deliver. They are, by definition, large, complex or innovative, with many ‘breaking new ground’. Focusing on supporting these projects is at the core of the GMPP’s purpose. This helps ensure IPA resources are deployed to priority areas and that we are working towards our commitment to increase focus on the most complex projects to set them up for success.

GMPP delivery confidence by category

Projects with a ‘Red Delivery Confidence Assessment’ sit mainly in the transformation and service delivery, and military capability categories, with 10 and 7 red-rated projects, respectively.

Projects in all the Annual Report categories receive similar DCA ratings.

Projects in the military capability category have improved most compared to the data in last year’s report. Their average DCA rating has climbed by 7%. Projects in the ICT category have worsened most compared to the data in last year’s report. Their average DCA rating has dropped by 7%.

DCA analysis 2013-2022

GMPP delivery confidence change

GMPP projects present many distinct challenges and complexities, and these are highlighted by a dual trend in the pattern of delivery confidence (see Figure 7). In the first eight years there was a decrease in projects’ health, where the average project rating worsened from Amber/Green on the 2013 Annual Report to Amber on the 2020 Annual Report. Since then, projects’ health is getting better, and the average project rating has improved over the past two years.

While there are currently 27 projects rated as red, the change from a five to three tier DCA ranking this year did not impact the average deliverability of the GMPP portfolio – this year’s average project rating has slightly improved compared to last year. This change actually enables IPA to more easily identify the projects with high deliverability risk, as is shown by the largest number of red-rated projects this year.

This in turn allows IPA to focus its resources on these projects in order to promptly improve these projects’ deliverability, so they can leave the GMPP.

DCA changes between AR 2020-21 and AR 2021-22

DCA changes between AR 2020-21 and AR 2021-22

GMPP leavers 2020-21

Since last year’s report, 25 projects have left the GMPP. In most cases a project leaves the GMPP when it has been successfully delivered or no longer demands regular IPA support. For instance, where a project reaches a business-as-usual stage of delivery, readiness to leave is judged by the IPA alongside departments. Of the 25 projects that left the GMPP this year, 14 were on track to deliver against their objectives and expected benefits.

Other reasons for leaving the GMPP include where a project is merged with, or replaced by, other similar projects, or when it no longer meets the GMPP criteria. For example, the Border Systems Transition Programme, CDS Northern Ireland Programme and CHIEF Transition Programme were removed and rolled into a single programme ‘the Borders and Trade Programme’, which is being delivered by HMRC.

Projects join the GMPP at an early stage of their lifecycle and consequently with an uncertain delivery confidence. This is illustrated in the initial published DCAs for this year’s leavers cohort. Of the 25 projects that left the GMPP in the last year, 9 started with a red or amber/red DCA while 5 projects started with a green or amber/green DCA. Over the course of their time on the GMPP, 14 projects left the GMPP with a green or amber/green delivery confidence. The challenging delivery environment of these projects make them complex; therefore this is positive performance and shows improvements over time.

While the IPA supports successful project delivery, it must also help government and departments to prioritise the correct projects. Of the two projects that left GMPP with an amber/red DCA in the last year, one was brought to an early closure, and the other one was closed and replaced by another GMPP project. The IPA has overseen an increase in this latter type of closure in the last 12 months for strategic, operational reasons or to support departmental prioritisation.

Leaving the GMPP rarely marks the end of a project’s delivery, and for some of the most complex projects, the IPA maintains a continued involvement in the project, as required. In line with recent National Audit Office recommendations, the IPA is committed to ensuring that all projects leaving the GMPP have had an exit (or equivalent) review which includes consideration of the ongoing tracking of project benefits. An example of a GMPP leaver who has successfully delivered on their objectives is the South West Route Capacity Programme.

Reasons for leaving the GMPP 2020-21

Delivery confidence of 2020-21 leavers – first Annual Report publication vs last Annual Report publication

South West Route capacity programme

In 2012, it was confirmed by the Secretary of State for Transport that an ambitious South West Route Capacity Programme was required to increase capacity and improve services on the Wessex rail route. This was primarily achieved by increasing platform lengths from Waterloo on the lines to Reading and Windsor to accommodate more train carriages, and by bringing the historic Waterloo International Terminal designed by Sir Nicholas Grimshaw back into use for domestic rail services.

A combination of infrastructure works was required to ensure the programme’s success. First, a major set of infrastructure works at Waterloo station in 2017 to extend platforms 1-4, which was noted as a success for its early communications engagement with passengers. Second, bringing Waterloo International Terminal back into use by 2018. Thirdly, by increasing platform lengths from 8-carriages to 10-carriages on the Reading and Windsor lines. To complement this, track and signalling upgrades and lift installation works took place to support the programme.

The successful delivery of the programme and procurement of 10-carriage trains by the South West Railway franchise created increased peak time capacity into and from Waterloo at the busiest times of the day. This, alongside the station enhancements, resulted in improved customer satisfaction as measured by passenger survey scores.

The programme left the GMPP in 2021 as it was successfully delivered on time and within budget. It received IPA assurance and support, including a green rating for the management of its closure, advice on governance and the sharing of best practices.

Managing the GMPP

The GMPP was created over 10 years ago to ensure robust oversight of the government’s most complex and strategically significant projects and programmes. Through the GMPP, the IPA has worked alongside HM Treasury and departments to support the government’s ambition to bring about a revolutionary step change in how it delivers major projects.

Last year, the IPA sought to ensure that the GMPP contained all eligible projects and programmes and that they joined as early as practicable. As a result of this exercise, the number of projects on the GMPP increased from 125 (covered in the IPA’s 2019-20 Annual Report) to 184 last year. This trend has continued since, with the GMPP now containing 235 projects.

This 28% net increase has allowed the IPA to apply appropriate levels of oversight, scrutiny and support to a wider scope of major projects and programmes delivered by government. This is delivered via the GMPP, primarily, but not exhaustively, through:

1. The data tracking of all GMPP projects. This provides trend analysis, comparison with other programmes, sectors and departments to support the continuous improvement of how the government collectively delivers projects. In addition, where the data suggests sustained poor performance, the Treasury and IPA can reallocate support for the projects to realise a change in the performance trajectory.

2. The IPA Assurance Gate Review process. These are required to take place prior to the formal HM Treasury approvals (Treasury Approval Points (TAPs) and Major Project Review Group (MPRG)). They are an essential part in the successful delivery of projects and provide support and constructive challenge to senior response owners.

3. Expert advice and support. The IPA provides valuable advice and support on project delivery, commercial, financial and sector-specific aspects of major projects. This includes setting up projects for success and responding to assurance review recommendations.

To ensure the correct allocation of this resource, we have continued to formalise the way we escalate projects. In particular, we have focused on the alignment of resources with projects that closely support wider government priorities, from levelling up to achieving net zero by 2050. This sharpening on focus has coincided with, and is complementary to, the wider alignment of departmental priority outcomes and the government’s long-term policy objectives, as set out in Outcome Delivery Plans (ODPs). Going forward, we will continue to work with our partners across government to ensure projects are set up for success and capable of delivering value for money outcomes in line with government priorities. Another way in which IPA adds this value is through assurance.

Assurance and system learning

2021-22 was an increasingly successful year for delivery across assurance and system learning. 202 reviews have been resourced to date across 161 projects.

Delivery Confidence Assessment (DCA) change to Stage Gate Assessment (SGA)

In April 2021, IPA ceased providing a five level (R/R-A/A/A-G/G)^{[footnote 4]} DCA as a key outcome of an IPA Assurance Review. In support of getting to green, accounting officers and SROs are now provided with a three level Stage Gate Assessment (SGA) based on a three level RAG, which has enabled us to sharpen up the focus and impact of our assurance reviews.

This refreshed approach resulted in 30 (15%) red SGAs being issued, 148 (73%) amber and 14 (7%) green. The remaining review outcomes were either classified information or produced results against other categories (IPRs, portfolio reviews etc).

Of the 30 red SGAs that were returned from 28 projects, 19 projects undertook an Assurance of Action Plan (AAP) review within the year – AAPs are now only provided as a ‘response to red’. The remaining nine projects are yet to have their AAP, but all are scheduled for this financial year. Of the 19 projects that undertook AAPs, 17 (89%) returned an improved SGA rating of either amber or green.

Two of the AAPs (11%) returned a red rating, which led to the implementation of the first IPA ‘case conferences’ – this is an intervention where a project has received a ‘double red’ rating, and therefore project leadership is brought together to make decisions and leverage change for the future direction of the project or programme.

The ‘response to red’ process was developed and tested with a number of projects. This development of consequential assurance (red, AAP, case conference) means that IPA assurance not only informs HMT decision making, but goes through a bespoke, assurance informed, support driven, system approach, and at the centre sits the IPA assurance review. We have also been refining our reviewer pool of experts to improve the quality of the service we provide.

Assurance capacity and capability

To date, we have confirmed 1,331 active high-risk reviewers and are working with them to build a granular picture of the skills required to assure the GMPP. The improved reviewer data structure and approach has made it significantly easier to match reviewers to reviews. The transition to online reviewer training and accreditation was successful and 39 training sessions were undertaken, training 402 reviewers into the refreshed reviewer pool. The reviewer accreditation procedure was systematised and from 1 January 2022, eight-weekly accreditation panels were held, accrediting 95 reviewers.

Work on system insights and learning data was significantly delayed in 2021-22 due to the availability of consistent, clear and well managed data. Initial activity of the first quarterly assessments (QA) focused on data cleansing and on building clear data processes between core areas across IPA. This work was further developed by the current QA lead, and data accuracy is now an operational priority of each assurance lead (AL). Furthermore, our GEMS data, a cornerstone of assurance system learning, is significantly more up to date, with over 90% accuracy.

The development of the assurance review pipeline is a positive step forward, as is the creation of a range of assurance system insight prototypes that have been tested with a number of audiences. We are working closely with our partners in the government Internal Audit Agency (GIAA) and National Audit Office (NAO) to better share data and information on a regular basis.

The Assurance and Systems Learning Ways of Working launched in September 2020 and has been tested through 2021-22. Through a consultative approach with internal and external stakeholders, IPA has refined the base model and has captured potential changes and improvements. In addition, a total of 77 assurance products were reissued as part of the assurance product refresh and responses to the products we are sending out in support of ongoing reviews are positive. More work is planned for 2022-23 to improve its impact and see positive outcomes.

Project/Programme Outcome Profile (POP)

The Spending Review 2021 placed a renewed focus on the outcomes that would be achieved for the money invested in public services, with a set of priority outcomes agreed for each government department. Going forward, it is critical that projects and programmes establish and evidence a clear ‘golden thread’, from government priorities to the development of strategies and business cases.

To support teams to do this, IPA and HMT have published a new tool ‘Project or Programme Outcome Profile (or POP) tool’ as part of HMT’s Green Book and Business Case guidance. Whether a business case is for a programme within a strategic portfolio or for a project within a programme, using the POP tool can help to:

• Strengthen business cases, by clearly articulating how the proposal supports the government’s strategic priorities.

• Promote closer working between government departments, by identifying how your proposal contributes to the priorities of other government departments.

• Embed outcome-based decision making throughout delivery, and plan for monitoring and evaluation from early in the business case process.

POP is already used across a range of departments and supports a number of major priorities on the GMPP. Project delivery professionals across government have given feedback that POP provides a framework for teams to explore how their project or programme will support the delivery of government’s priority outcomes.

Most recently IPA has launched an e-Learning video, taking users step-by-step through the tool, using a case study from the Department for Business, Energy & Industrial Strategy. After completing the video, viewers should feel confident to begin using the POP tool on their projects and programmes.

Capacity and capability

Strong and accountable leadership is essential for successful delivery of government projects. The National Infrastructure Strategy published in November 2020 sets out plans to equip those accountable for the success of projects – SROs, accounting officers and ministers – with the skills and tools they need, and ensure clear accountability, both for project delivery and successful outcomes.

Over the past year, the IPA has put in place systemic interventions to drive a step change in major project expertise and leadership skills. As part of this we have:

• Implemented measures to ensure major project SROs have the time and skills needed to lead their projects, ensuring they have agreed and published appointment letters, attended the Major Projects Leadership Academy (MPLA) and set clear expectations on how much time they should spend on their projects.

• Boosted capacity by recruiting major project experts to fill critical gaps in professional delivery roles across the GMPP, and introduced new performance-related allowance arrangements for SROs to improve retention.

• Established the new Government Project Delivery Framework, supported by a range of best practice guidance, including reissuing the Project Routemap support tool, to help major project leaders and their teams set projects up for success and provide a consistent framework to support them throughout the project lifecycle.

• Established the new Government Projects Academy, to set professional standards and equip the project community across government with the expert skills needed to deliver major projects successfully, putting world-class delivery, modern methods and sustainability at the heart of training practices.

The Government Projects Academy

The Government Projects Academy brings together professional standards, training and development for people working in project delivery, together with a new framework for assessing and accrediting project professionals. This will be accessed through a new cross-government online hub, where the Academy will serve as a centre of excellence for building world-class skills and expertise in delivery.

The new Government Project Delivery Profession accreditation scheme, trialled in 2021-22 and now being implemented progressively across departments, provides an industry-aligned standard for project delivery professionals working across government. The scheme provides a consistent, objective and rigorous method of assessing professional knowledge, skills and experience, enabling them to gain a recognised ‘licence to practise’ at one of four defined levels: ‘foundation’, ‘practitioner’, ‘senior practitioner’ and ‘master practitioner’.

Our flagship leadership programmes, the Project Leadership Programme (PLP) and MPLA, are now integral elements of the accreditation scheme, and are required for learning at senior and mastery level, respectively. Both programmes have been reprocured and refreshed to equip major project leaders with the skills and understanding of leading practice and modern methods needed to deliver projects successfully over the next decade.

The Academy continues to provide training in project delivery at all levels, including training for ministers and senior officials (as senior sponsors of infrastructure projects). This includes ongoing development of innovative training products, including new introductory e-learning and modular training for new SROs, plus a growing range of modular short courses, for example on cost estimation, leading transformation, and transforming infrastructure performance, developed over the last year.

Providing these tools and learning opportunities will help us deliver effectively against our complex projects and programmes. Another tool that is useful to support this agenda is IPA’s Project Routemap.

Project Routemap is the IPA’s support tool for novel or complex major projects. It helps sponsors and clients understand and build the capabilities needed to set projects up for success. As part of a major overhaul of the best practice and lessons learned contained in the Routemap, the IPA has published two new Routemap modules. These are:

Delivery Planning

Entering the delivery phase of a project is characterised by a step change in scale with significantly more people and spend. The commitments made also mean the consequences of changing course or not going ahead are greater. The new Routemap Delivery Planning module covers the critical transition period, between project set up and delivery. It supports project teams to demonstrate a clear delivery strategy, build strong engagement, establish a robust baseline and optimise performance. It includes case studies from Transport for London, Sellafield Ltd and the DfT.

Systems Integration

As projects become more complex, their success or failure is increasingly determined by the interactions between new and pre-existing natural, built and digital systems. The new Routemap Systems Integration module helps project teams to understand how the systems delivered by their project must interact with outside systems, to maximise economic, environmental and social value. It emphasises the critical role of people in making these interactions work and the need for clear integration across the organisations which come together to deliver major projects. It includes case studies from The Francis Crick Institute, Heathrow Terminal 2 and the MOD.

The IPA is now training government project professionals, both in the UK and internationally, providing certified Project Routemap facilitators with the tools needed to help set projects up for success.

The IPA is continuing to roll out the Project Development Routemap internationally, working with the World Bank to successfully apply Project Routemap to an Indonesian mass transit project and delivering training to Infrastructure South Africa.

There are a range of other IPA support tools to help projects and programmes deliver to an excellent and world-class standard. Transforming Infrastructure Performance (TIP) is changing the way industry and government think about delivering projects so that they are more digital, modern and sustainable. IPA has also worked closely with HMT to update the Treasury Approval Process (TAP) guidance which helps ensure that best practice is applied consistently across government.

Project Routemap case study

IPA Delivery

Infrastructure and digital delivery

High-quality infrastructure is vital for economic growth and central to the government’s vision for people and business. There are currently 70 infrastructure and construction projects on the GMPP, with a combined whole life cost of £294bn and benefits of £302bn.

Last September IPA launched the Transforming Infrastructure Performance (TIP): Roadmap to 2030,^{[footnote 5]} which was collaboratively developed between government and industry. It sets out a vision for transforming how government and industry intervene in the built environment to drive a step change in infrastructure performance and renewed focus on outcomes for people and nature. We are now working with stakeholders across the public, private and academic sectors to implement this long-term transformation.

The Additional Prisons Programme demonstrates what the TIP vision can deliver – in particular a reduction of 2.5 years^{[footnote 6]} build time through the use of modern methods of construction (MMC) and implementation of an innovative alliance for the four new build prisons.

IPA has established the Government Construction Community (GCC), a virtual forum for government construction professionals to support the implementation of TIP. Alongside this, our reformed Government Construction Board^{[footnote 7]} is supporting the Infrastructure Steering Group^{[footnote 8]} and ministers to drive implementation of the Roadmap and Construction Playbook^{[footnote 9]} across government. Project Speed, the government’s Infrastructure Delivery Task Force, continues to focus on delivering infrastructure projects better, greener and faster.

To help improve project delivery performance and establish high-quality reporting, the IPA is leading work across government and industry to develop a suite of construction metrics across four themes (productivity, levelling up, innovation and whole life carbon). These are aligned to government priorities and the TIP vision, including supporting the requirement for public project disclosure of embodied carbon emissions by 2025 (as part of the COP26 pledge and the digitalisation of infrastructure delivery).

Landsec’s project ‘The Forge’ showcases what a new delivery model can achieve, predicting a 19.4% reduction in embodied carbon and an expected productivity gain of 13.5% through automated construction and a multi-skilled workforce.

To deliver interventions that are fit for purpose and contribute to better outcomes we will need to reshape decision making and delivery processes, and engage with the complexity of our infrastructure systems. Digital twins are an important way to do this and we are working with departments and industry to enable this innovation through implementation of a new Information Management Mandate^{[footnote 10]}.

The Mandate defines good practice in information management, and we are working with public sector clients to build it into our procurements and contractual arrangements.

In parallel with contracting for the right information, different business models will be required to incentivise the supply chain to deliver the desired outcomes. The refresh of the Construction Playbook includes guidance covering digitalisation, MMC and longer-term contracting. Technologies such as artificial intelligence and 3D printing are already available, and we now need to lead a culture change to drive adoption. Our TIP Learning Programme and development of a tech navigator tool will help clients navigate the vast range of technical solutions in the market.

Going forward, IPA is driving a number of key actions to improve infrastructure delivery, including a refresh of our TIP pathfinder projects – strategically important projects and programmes that will provide crucial insights to share across government on implementing TIP.

We will roll out TIP training for SROs and programme directors, to embed TIP principles into the early phases of infrastructure projects and programmes. We are also committed to improving the quality of design across infrastructure projects by working with the National Infrastructure Commission (NIC) to ensure board-level design champions are in place on all major infrastructure projects. Longer term, the National Infrastructure Commission’s second National Infrastructure Assessment^{[footnote 11]} offers an opportunity to embed TIP into long-term strategic planning for UK infrastructure needs and performance.

Birmingham 2022 Commonwealth games capital programme

The 2022 Commonwealth Games were originally awarded to Durban, South Africa. After Durban’s withdrawal, the UK and the city of Birmingham stepped forward to host in December 2017. The challenge for the government was to deliver a major multi-sport event and all its associated infrastructure in an accelerated 4.5 year timeframe, rather than the established seven year cycle utilised by Manchester 2002, London 2012 and Glasgow 2014.

The Birmingham 2022 capital programme of works consists of a £190m investment (75% central government and 25% local government) in six new or upgraded venues within the West Midlands. Importantly, the largest two venues required for the games, the rebuilt Alexander Stadium and the new Sandwell Aquatics Centre, were to be designed, procured and constructed from scratch within this accelerated timescale.

With an immovable deadline and fixed budget, partnership working and a laser focus on delivery was key. The buildings have been designed for legacy and adapted for games while DCMS ensured the right professional resources were put in place via a locally based delivery partner.

A strong, yet agile, governance framework has further allowed this accelerated programme to navigate a series of unique generational events. From EU exit, to the wettest winter in decades, to the worldwide pandemic and therefore supply chain volatility, it is positive that momentum has successfully been maintained throughout. This has included direct collaboration with contractors and the supply chain and a focus on worker welfare which has driven risk-based solutions to every delivery challenge.

All projects within the Birmingham 2022 capital programme reached practical completion, on programme and within budget, in spring 2022 – ready for a successful summer of Commonwealth sport. IPA and Major Projects Review Group (MPRG) processes have provided support for this DCMS-led agile delivery approach.

HS2 is the new high speed railway that will form the backbone of Britain’s transport network. It is a transformative infrastructure programme which will connect our biggest cities and help level up the country. HS2 provides an opportunity to lead transformation in construction and rail systems, which has led to the programme’s commitment to the creation of a ‘digital twin’.

HS2 Phase 1 - Digital Twin

A digital twin is a realistic digital version of a physical asset or network. It can closely represent the behaviours and kinetics of the physically built or natural environment, to support business-critical decisions.

The HS2 digital twin is already allowing the coordination of design, testing and simulation of every aspect of the railway in advance – from infrastructure and rolling stock, to maintenance and passenger services at every stage of development, and from concept through to manufacture, commissioning, and operation and maintenance.

It will hold requirements, designs, as-built and as- operated information, with the addition of sensors, behaviours and machine learning, and will be able to create a dynamic model that can mimic, simulate and predict how HS2’s assets and network will perform in real life.

HS2 Ltd’s ambition is to run the railway’s infrastructure – and any critical processes – virtually at least two years before it is done physically. This will improve reliability, reduce maintenance costs and deliver a better service to passengers.

Building Information Modelling (BIM) has already shown how programmes such as HS2 can use data and information in new ways – improving design understanding and coordination, enabling benefits such as offsite manufacturing, facilitating advanced onsite logistics and construction processes, and supporting efficient asset management. The HS2 digital twin is an industry-leading example of how all of this capability can be brought together to drive real-life scenarios, which will improve how the end-state railway will be run and maintained once in operation.

Defence delivery

MOD major projects are critical to military capability and consequently to the defence of the nation. The number of MOD projects on the GMPP has increased by half its size compared to last year. It currently stands at 52 projects, with a total whole life cost of £83bn and this makes MOD the largest component of the GMPP across government. A large proportion of projects will introduce state-of-the-art military equipment, such as the Boxer fighting vehicle through the Mechanised Infantry Vehicle Programme and Type 26 Global Combat Ship and Lightning II. Other significant projects include SkyNet6 and the Land Environment Tactical Communications and Information Systems Programme, which are transforming UK defence’s digital technology and communications.

The IPA has supported the MOD through the provision of project delivery advice and assurance reviews. This has helped the MOD take forward the recommendations from IPA gateway and annual assurance reviews in preparation for HMT approvals. In the case of Mechanised Infantry Vehicles for example, learning from other GMPP programmes has helped create robust delivery plans. In addition to project-specific advice, the IPA has also placed its staff alongside a number of projects to work through challenging commercial and programme delivery issues.

From convening case conferences to supporting senior-level decision making at the MPRG, the IPA has had significant impact at strategy and portfolio level. With support from IPA and following the recommendations of reviews, several projects have moved from a red rating to at minimum amber – building confidence in successful project delivery. In the case of Skynet, IPA has provided robust advisory support and input to assist consistent maintenance of an amber DCA despite a number of challenges.

The IPA will continue to partner with MOD to inspire world-class project delivery across the MOD enterprise, in order to protect and promote national security – this involves a balance of assurance and support, with appropriate separation between the two. With the possibility that the number of MOD projects on the GMPP growing further over the next reporting period, this partnership, balance and prioritised targeting of limited resources, has never been more important.

An example of government’s commitment to this is the Mechanised Infantry Programme (see following page).

Mechanised Infantry Programme

The Mechanised Infantry Programme delivers new ground manoeuvre capability based around Boxer, an all-terrain armoured vehicle which can deploy soldiers quickly and reliably over long operational distances, with minimal logistics and high tactical mobility to deter, constrain and defeat threats. The Boxer Armoured Vehicle will modernise the Army under the ‘Future Soldier’ concept, central to its new Brigade Combat Team structures transforming how it will operate in future.

This collaborative programme invests in a strategic UK industrial base with factories in the Midlands and supply chain across the UK and internationally. This will enable enhanced cooperation with NATO and allies, and will increase UK prosperity, influence and exports, growing this key capability in the long term. The UK was a founding member of the multinational Boxer programme through OCCAR, an international defence procurement organisation. The UK re-joined in 2019 to purchase 523 vehicles, uplifted to 623 in 2022 following the Integrated Review.

The programme is being delivered at pace, adopting a largely “off the shelf” purchase approach and limiting modifications to meet specific UK capability requirements. This approach exploits a highly capable, proven vehicle which is in service with other nations. Its unique modular design and modern digital architecture enables Boxer to be more easily adapted in rapidly changing circumstances and global environments to meet future needs. This allows Boxer to meet diverse mission requirements (such as infantry carrying, command or ambulance variants) with a common vehicle and remain future-proofed to secure long-term value.

This GMPP programme has strong strategic alignment, excellent collaboration, constructive external challenge and pragmatic engagement with stakeholders. Building relationships across defence, allies, industry and IPA to share plans and work innovatively has been key. The programme is supporting people and developing opportunities, drawing on team skills with a common vision and understanding. Professional project delivery, user expertise and learning from other GMPP programmes have helped to create robust delivery plans, enabling integration of equipment, support, training, infrastructure and information system projects, as well as strong leadership to position the programme for flexible and successful delivery.

Another example of a programme critical to the safety of the UK is the Vaccine Taskforce (see following page).

Vaccine Taskforce

The Vaccine Taskforce (VTF) was set up in 2020 under the COVID-19 Vaccination Programme to help protect and save the lives of our citizens against coronavirus. This was a huge success with the UK being the first country to deploy regulated vaccines. Going from strength to strength, the UK is now offering the fourth dose of vaccine for certain individuals and groups of people.

This is now a BEIS/DHSC joint programme, which continues to attract staff from across the Civil Service, private sector and academia. This breadth of expertise, ranging from clinical and scientific knowledge through to supply, programme management and commercial, has provided a powerful platform to continue to achieve what the programme set out to do.

The VTF sponsored critical research, including the COV-BOOST trial, supporting the design of an effective booster campaign. This success was critical in increasing our protection against the Omicron variant that emerged during November 2021. The programme continues to build broad and deep relationships with suppliers and has secured access to vaccine supply for 2022 and 2023, which includes variant vaccines, if developed.

It has also managed the supply of vaccines effectively and began donating them in the summer of 2021. The Taskforce met government’s target to donate 30 million doses before the end of 2021, with over 53 million doses given by 6 April 2022. Of these, 46.4 million have been delivered to COVAX and 6.7 million have been delivered directly to countries in need, benefiting 38 countries so far. Government has also supported COVAX through funding of £548m as part of government’s objective to provide international access.

The VTF has invested over £395m to secure and scale up the UK’s vaccine manufacturing capabilities in order to respond effectively to the pandemic and is actively engaging with market participants to further strengthen our domestic capabilities and capacity in vaccines.

Future outlook

The IPA is building its future thinking capability around the project delivery profession and the delivery of major projects. Given the duration of many of the government’s major projects, and the speed of technological and societal change happening all around us, engaging with future thinking in a strategic and structured way can help us to make better sense of the present, anticipate upcoming challenges and look ahead at valuable opportunities.

The IPA Project Futures Team has been horizon-scanning for the past 18 months, capturing data on key trends such as the increasing role of Artificial Intelligence and emphasis on soft skills in project delivery, significant increases in cyber attacks on critical infrastructure and the need for increased resilience, and shifts towards more collaborative and people-powered construction. Our priority for the coming year is to embed future thinking further into the IPA and across the government project delivery profession.

IPA Expert Advice offer

Infrastructure and Projects Authority

Business Enterprise

• Government services
• Regulated utility markets
• Supply side sales
• Joint ventures

Project, Programme and Portfolio Management

• Systems and process tools
• Technology, digital and data
• Business change
• Business transformation
• Risk management
• Operational delivery

Accountancy and Finance

• Delegations and controls
• Financial disciplines
• Balance sheet treatment

Resources

• Talent and succession management
• Civil Service resourcing and recruitment

Engineering and Construction

• Civil works
• General construction (including modern methods of construction)
• Systems analysis and integration

Land and Property

• Acquisition and compensation
• Asset Management
• Town Planning

Law

• Corporate and Commercial
• Real Estate
• General Counsel Expertise

Banking

• Project Finance
• Capital Markets
• PFI
• Whole business securitisation

The IPA helps departments and their agencies to successfully set up and deliver projects and programmes. Our experts provide support and delivery experience, with deep sector knowledge on commercial and financial capability, as well as experience of different markets and major projects from across the public and private sectors.

During the past 12 months, the UK has continued to build opportunities from exiting from the European Union. This has been done against the backdrop of the pandemic recovery and most recently while facing the global uncertainties resulting from the war in Ukraine. The IPA has continued to focus on the delivery of core infrastructure and transformation projects that will generate significant economic and security benefits, particularly in the areas of defence, transport, electricity generation and energy supply, net zero, borders and farming, health, digital connectivity, housing and urban regeneration.

Examples of projects and programmes that have benefited from IPA expert advice have been outlined in this Annual Report, including Freeports, New Prisons Programme, High Speed 2, Boxer Armoured Vehicles and Carbon Capture and Storage.

In addition, IPA has provided embedded support to the New Hospitals Programme and the Housing Infrastructure Fund delivery. IPA advice has also played a key role in Project Speed, a cross-Whitehall Taskforce, led by the Chancellor, to accelerate and improve the design and delivery of vital economic and social infrastructure projects.

The key measure of effectiveness for IPA expert advice is the positive impact on project and programme delivery – influencing actions to secure the required outcomes within the budget and timescales agreed. Going forward, IPA will be seeking to measure this impact more directly through a combination of objective assessment and “client satisfaction”, as well as the measurement of overall project performance.

The IPA provides expert delivery advice, including projects and programmes across the GMPP and to others that are top government priorities for delivery by the private sector. As illustrated below, the IPA brings a breadth of professional and sector expertise to help departments formulate policies capable of being delivered, set up the necessary project and programme organisations and deliver successful outcomes. By working across the full range of government projects, and with private sector markets, IPA is able to accumulate and share knowledge and best practice between sectors.

IPA advice and experience is available to support departments and their agencies at every stage of the project lifecycle from inception through to delivery into service. This includes the sequential processes involved in designing, building and operating a piece of infrastructure and the application of “agile” techniques to deliver business transformation and other projects where the process is iterative.

There is also support for project SROs and programme directors in the preparation of business cases and putting in place the delivery mechanisms that are an essential prerequisite to approvals to proceed at each stage.

Type of advice provided and the stages at which it is provided in the project or programme lifecycle.

Up to Strategic Outline Business Case (SOBC)

• Testing deliverability
• Setting up governance
• Securing resources
• Timely approvals
• Delivery organisation design
• Cost and programme estimating
• IT enabled change
• Business transformation

Through to Final Business Case (FBC)

• Testing deliverability
• Setting up governance
• Securing resources
• Timely approvals
• Delivery organisation design
• Cost and programme estimating
• IT enabled change
• Business transformation
• Commercial and financial structure
• Contracts and procurement

Post FBC and into operation

• IT enabled change
• Business transformation
• Commercial and financial structure
• Contracts and procurement
• Market capacity and engagement
• Transaction support

Freeports

The Freeports Programme has been established to deliver up to ten Freeports throughout the UK as a key part of the government’s Levelling Up agenda. Government objectives for Freeports include:

• Establishing national hubs for global trade and investment across England, Scotland, Wales and Northern Ireland.

• Promotion of conditions to regenerate communities and create jobs.

• Stimulating hotbeds for innovation.

The successful launch of the Freeports Programme in England in 2020 (operational partnerships established in 2021) demonstrates the power of effective and coordinated cross-Whitehall collaboration. Current successes for this include customs sites, tax relief, streamlined planning consent procedures, innovation support and up to £25m of seed capital for each site.

The ambitious objectives to establish eight Freeports in England and at least one in each of Wales, Scotland and Northern Ireland are being achieved by structured programme management, and a clear understanding of interrelated objectives. This is supported by IPA-arranged assurance and subject matter expertise by commercial specialists and project delivery advisors. In addition to being on the Freeports Programme Board, the IPA has worked closely with the Department for Levelling Up,

Housing and Communities (DLUHC) and HMT by participating in critical approval processes, including HM approval panels, the programme assessment review and MPRG. The Freeports Programme has also benefited from being on the GMPP and its associated assurance measures.

By late-2022, Freeports should be fully operational in Teesside, Humber, Solent, East Midlands, Freeport East (Harwich), Liverpool City Region, London and Plymouth. A prospectus has been published by the Scottish Government in conjunction with DLUHC inviting two Freeport applications in Scotland, with bids for Freeport sites in Wales and Northern Ireland to follow.

Another project which has paved the way for innovation and included cross-government collaboration is the Additional Prison Places Portfolio (see following page).

In May 2020, the MOJ 10,000 Additional Prison Places Programme was subject to an IPA Gateway 2 (GW2) review of the outline business case. This review was one of the first remote reviews conducted in the early stage of the first national COVID-19 lockdown.

Recognising the importance of the programme as a government manifesto priority (and the then unknown impact of the COVID-19 national restrictions), the IPA convened a team of in-house specialists to support the team reviewing the business case and to inform the assurance activity.

The GW2 review gave an amber/red delivery confidence assessment. The IPA subsequently developed a support offer designed as a menu of services that the programme could access, to help them address areas of concern highlighted by the GW2 review. These areas are set out below.

Additional prison places portfolio

Procurement reform: the IPA provided support in defining the delivery model, giving advice on procurement strategies to maximise opportunities for success, support in setting up appropriate processes around the delivery model and procurement strategy, and supporting the considerations of capability and capacity to deliver it.

Risk and contingency: the IPA helped with the development of the approach to managing risk and contingency across the programme with reference to current best practice and examples across government. There was significant activity on this strand of the support offer, including risk deep dives, risk workshops and analysis of risk management for the programme.

Benchmarking and cost estimation: the IPA undertook a benchmarking and cost estimating deep dive, creating a prisons template in order to undertake an in-depth look into the prison cost estimating and benchmarking process. The IPA also supported MOJ with a “Pounds in the Ground” analysis concerning construction versus non-construction activities.

Net zero and sustainability: the IPA worked collaboratively with the MOJ to map a pathway for the department to reach net zero across its prison estate, identifying how the strategy could be taken forward and aligned with initiatives that other departments are employing. In addition, the IPA worked with the department to understand the best way that it could monitor and evaluate progress.

Modern methods of construction: the IPA supported the programme to develop an approach (with industry) to drive automated design, use of platform approaches and deep retrofit. This included identifying opportunities to join up pipeline activity across sectors for wider benefits and elements of the wider portfolio that were appropriate for continued and increasing application of mixed approaches. The IPA identified and engaged two critical friends to help explore a range of options linking into the commercial model for delivery.

Market capacity: The IPA conducted an assessment of supply chain resource requirements to deliver the programme to information portfolio risk management, including inflationary cost pressure, labour supply and demand and contractor health.

The IPA also provided further support to consider supply chain inter-dependencies between other projects/programmes across government’s infrastructure and construction portfolio.

The support from the IPA assisted the programme to proceed through its assurance action plan (following their previous amber/red rated review) and receive an improved delivery assessment confidence rating of amber. The IPA continues to work closely with the MOJ’s Executive Agency, HM Prison and Probation Service (HMPPS), to ensure that we are providing the appropriate advice, support and assurance across the entire Additional Prison Places Portfolio now comprising seven GMPP programmes.

The support offer for this programme has subsequently been used as a pathfinder for other IPA support offers being delivered across Tier A active programmes.

Infrastructure finance

The IPA supports the setting up of critically important projects and programmes where the private sector is the main delivery vehicle and attracting private finance is fundamental to achieving policy outcomes, particularly in relation to the development of nationally significant infrastructure.

Advisory support to HMT, other government departments and programme teams often involves calibrating revenue models and risk sharing interventions to facilitate private sector investment for privately sponsored infrastructure development, while seeking an affordable and value for money deal for consumers and the taxpayer.

Recent activities have had a particular focus on energy transition and net zero initiatives, as well as continued support in relation to the housing agenda.

In the last year, IPA has been providing commercial and financial advice and general support to BEIS and HMT on the development of the business model for low carbon hydrogen production and on the Net Zero Hydrogen Fund, as well as on various aspects of the Carbon Capture, Usage and Storage programme (CCUS), where the team has supported the development of new business models for the transport and storage element of the clusters, industrial carbon capture, and power generation with carbon capture.

In relation to the Heat Networks Investment Project, the IPA has been supporting BEIS for several years as part of the cross-government Project Board on their £320m capital grant and is now supporting their three-year £288m capital grant Green Heat Network Fund (GHNF). The first application round for the GHNF opened in March 2022 and will support the commercialisation and construction of new low and zero carbon (LZC) heat networks as well as the retrofitting and expansion of existing heat networks.

In relation to civil nuclear power generation, IPA has continued to support the Sizewell C programme as it prepares for a financial investment decision targeted under this parliament, subject to value for money. It is also supporting HMT and BEIS with commercial, delivery and financial considerations in relation to small modular reactors and advanced nuclear projects and programmes. The IPA also provides support to BEIS and Low Carbon Contracts Company (LCCC) in relation to the ongoing monitoring of construction progress at Hinkley Point C.

Also in relation to energy transition and the Net Zero Strategy, IPA has been assisting BEIS with its development of Future System Operator proposals, offshore wind transmission development and port investment, and more widely in relation to electricity market reform.

The IPA has also provided commercial and financial support to HMT in relation to Homes England housing programmes, including initiatives such as the Housing Delivery and Diversification Fund. This support has also included the review of commercial and financial aspects of business cases submitted for HMT approval.

Recent activities have had a particular focus on energy transition and net zero initiatives.

PFI Centre of Excellence & Contract Management Programme

There are over 550 current PFI contracts (excluding those in the devolved administrations) and the PFI Centre of Excellence, run by the IPA, provides expert support and advice to departments and contracting authorities.

In 2020, the IPA set up a PFI Contract Management Programme – a collaboration between the centre, departments and functions – to manage the risks in operational PFI projects. The aim of the programme is that contracting authorities have the capabilities, knowledge and tools they need to manage their PFI contracts effectively and to engage confidently with their private sector partners.

The programme comprises four projects:

• Contract expiry – managing the risks of contract expiry and ensuring value for money as contracts end.

• Improving operational performance – improving the performance and efficiency of operational contracts.

• Building capability – building capability through system learning, guidance and training.

• Advice & support – providing expert support and advice to departments and contracting authorities.

In summer 2021, the IPA published ‘Managing the Risks of PFI Contract Expiry’^{[footnote 12]} that sets out how IPA provides support to authorities in managing the risks of PFI contract expiry. IPA provides PFI expiry-related review, guidance, advice and support for public bodies in England that is integrated within our wider programme of PFI training, contract management support and advice. The aim is to ensure that private sector counterparties meet their contractual obligations through to the expiry of the PFI project, and that there is an efficient and effective hand-back and take-forward process allowing for continuity of all required services on PFI expiry.

Expiry health checks: IPA offers all PFI projects within seven years of expiry an initial expiry health check, with further reviews at three and five years. The health check involves a review by the IPA of key project documentation and a structured interview process with the contracting authority. The review process uses a diagnostic tool to help assess and benchmark the project’s readiness for expiry. The output from health checks is a short report which identifies the key issues and action recommendations for an authority. The IPA is able to offer follow-on support either directly or through its PFI expert associates. To date, IPA has undertaken over 70 expiry health checks.

Systems learning: In December 2021, the IPA published an analysis of the findings from the first phase of health checks^{[footnote 13]}. This provides some vital lessons for the public sector, particularly around the need to start preparing early for contract expiry and ensuring projects are set up for success with appropriate governance, leadership, planning and resources.

Expiry guidance: ‘Preparing for PFI contract expiry’^{[footnote 14]} was published in February 2022 and provides practical guidance to contracting authorities on managing the expiry of PFI contracts and the transition to future services provision. It is not prescriptive but offers a framework for approaching PFI contract expiry and transition, based on practical experience. This guidance is supplemented by an expiry toolkit providing related additional tools and materials to support authorities in managing expiry. It is intended that this toolkit will be added to, over time, to reflect the growing expiry experience in the market and to provide a practical reference base.

Building capability: During the year a facilitated expiry training course for cohorts of up to 16 people has been developed and piloted with contracting authorities. The course was fully launched in the spring and IPA will deliver around 20 of these courses a year. This contract expiry training will be complemented by a programme of eight PFI contract management e-modules which will be rolled out during the course of 2022-23.

Expert advice & support: In December IPA launched a campaign to form a pool of PFI expert associates to work with the IPA to provide greater capacity and access to specific skills and expertise. The campaign generated a significant response from high quality applicants with deep expertise in PFI. These associates will work alongside IPA commercial specialists to provide expert support and advice to authorities.

The programme is continuing to work closely with industry partners. Last year IPA established a working group with industry, including investors, lenders and advisors, to navigate the impact on PFI contracts of the transition from LIBOR to SONIA^{[footnote 15]}. This year joint working groups have been set up to consider the challenges of net zero and assessing asset condition at contract expiry.

International work

The mission of the IPA International Team is to support the government’s “Global Britain” goals and the pursuit of “world-class project delivery” in the international arena. This is more important than ever as the UK builds new relationships overseas and takes the lead in helping countries around the world to build back better, faster and greener.

Alongside this work, as the UK government’s centre of expertise on infrastructure matters, we work closely with FCDO, Department for International Trade (DIT) and other departments at home supporting infrastructure initiatives (resilient and sustainable infrastructure development, COP26 etc). We support HMT on their financial and economic dialogues, the G7 and G20 teams with their infrastructure and climate change work, and with the multilateral development banks and other international bodies.

Examples of IPA work abroad, and its impact, include leading the UK’s Global Infrastructure Programme. This adapted and translated UK business case and project initiation methodologies train over 1,500 officials across seven countries in their use and setting up of development trusts for demonstrator programmes with the Inter-American Development Bank in Latin America (Lat-Am) and the World Bank in Indonesia.

This resulted in real policy change; it also opened the door to UK business wins in Indonesia, Colombia and Peru, and UK training consultancy contracts in South Africa, Colombia and Brazil. In support of the UK Government’s shift in strategic focus towards the Indo-Pacific region, we developed and delivered a major week-long resilient infrastructure programme for the member states of the Association of Southeast Asian Nations (ASEAN), and delivered infrastructure capacity building courses to four ministries in India.

We also delivered a significant South Africa infrastructure development training programme (with contracts won by a UK consultancy) and supported three other African countries. We have delivered a similar major programme for the Lat-Am block, alongside programmes in Brazil, Colombia, Peru and work in the Arabian Gulf.

The IPA has developed a world-class reputation working with countries, multilateral development banks and other bodies, showcasing UK methodologies and providing unique government-to- government support to countries of importance to the UK around the world. We continue to further UK foreign policy goals delivering the first programme under the FCDO’s new “UK Centre of Excellence for Infrastructure and Cities’’ and, alongside embassies, developing programmes with India, Brazil, South Africa, Indonesia, Saudi Arabia and others for the coming year.

Annex

The Annual Report and transparency data on major projects Under its 2012 mandate, the IPA is required to produce an Annual Report on the GMPP. This is the tenth Annual Report, with some previous reports having been published by the Major Projects Authority (MPA). In accordance with the Government’s major projects transparency policy, the Annual Report is published at the same time as departments publish the data on their projects that are part of the GMPP. The data published this year was submitted to the IPA in March 2022. The Delivery Confidence Assessments (DCAs) within that data, and included in this report, are provided by IPA for projects where the projects have received active IPA support or have undertaken an independent IPA assurance in the last 6 months. For other projects, the DCA is provided by the Senior Responsible Owner (SRO). The narratives from departments that accompany their published data online provide an update on progress since then.

Annex A - Explanation of DCA colour ratings

The DCA is the IPA’s evaluation of a project’s likelihood of achieving its aims and objectives, and doing so on time and on budget.

Green

Successful delivery of the project on time, budget and quality appears highly likely and there are no major outstanding issues that at this stage appear to threaten delivery significantly.

Amber/Green

Successful delivery appears probable; however, constant attention will be needed to ensure risks do not materialise into major issues threatening delivery.

Amber

Successful delivery appears feasible but significant issues already exist, requiring management attention. These appear resolvable at this stage and, if addressed promptly, should not present a cost/ schedule overrun.

Amber/Red

Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to address these problems and/or assess whether resolution is feasible.

Red

Successful delivery of the project appears to be unachievable. There are major issues with project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed.

Reset

A significant change to a project’s baseline which involves a business case refresh or change.

Exempt

Data can be exempt from publication under exceptional circumstances and in accordance with Freedom of Information requirements, i.e national security.

These DCA ratings were not used in IPA Annual Report 2021/22, as the IPA moved from a 5-tier to a 3-tier DCA rating system in June 2021. Definitions have been included as the 5-tier DCA rating system is referenced for previous versions of the IPA Annual Report in Annex D.

Annex B - Key names for departments

• BEIS - Department for Business, Energy & Industrial Strategy
• CO - Cabinet Office
• DCMS - Department for Digital, Culture, Media & Sport
• DEFRA - Department for Environment, Food and Rural Affairs
• DFE - Department for Education
• DFT - Department for Transport
• DHSC - Department for Health & Social Care (formerly DH)
• DLUHC - Department for Levelling Up, Housing and Communities
• DWP - Department for Work & Pensions
• FCDO - Foreign, Commonwealth and Development Office
• HMLR - Her Majesty’s Land Registry
• HMRC - Her Majesty’s Revenue & Customs
• HMT - Her Majesty’s Treasury
• HO - Home Office
• MOD - Ministry of Defence
• MOJ - Ministry of Justice
• NCA - National Crime Agency
• ONS - Office for National Statistics

Annex C - Snapshot periods for Annual Report years

• AR 2013 2012-13 - Published in 2013 using data as at September 2012
• AR 2014 2013-14 - Published in 2014 using data as at September 2013
• AR 2015 2014-15 - Published in 2015 using data as at September 2014
• AR 2016 2015-16 - Published in 2016 using data as at September 2015
• AR 2017 2016-17 - Published in 2017 using data as at September 2016
• AR 2018 2017-18 - Published in 2018 using data as at September 2017
• AR 2019 2018-19 - Published in 2019 using data as at September 2018
• AR 2020 2019-20 - Published in 2020 using data as at September 2019
• AR 2021 2020-21 - Published in 2021 using data as at March 2021
• AR 2022 2021-22 - Published in 2022 using data as at March 2022

1. TIP: Roadmap to 2030 – in September 2021 ↩

2. Government Project Delivery Functional Standard (2021) ↩

3. Example:
   - Portfolio A has three projects with one that is red rated, one that is amber rated, and one that is green rated, the average portfolio rating is 3: 5 (red) + 3 (amber) + 1 (red) / 3 (number of projects) = 3
   - Portfolio B of three projects with one that is red rated, and two that are amber rated, the average portfolio rating is 3.7: 5 (red) + 3 (amber) + 3 (amber) / 3 (number of projects) =3.7
   - Based on their respective average rating, Portfolio A, whose average rating is 3, is about 20% healthier than Portfolio B, whose average rating is 3.7 (3 is about 20% smaller than 3.7). ↩

4. The previous IPA five level DCA rating system: (Red/Red-Amber/Amber/Amber-Green/Green). ↩

5. Transforming Infrastructure Performance (TIP): Roadmap to 2030 ↩

6. Based on a 1,700 place prison ↩

7. Senior officials with responsibility for construction policy and project delivery ↩

8. Chaired by Alex Chisholm, Cabinet Office Permanent Secretary and Chief Operating Officer for the Civil Service ↩

9. The construction playbook ↩

10. Information management mandate ↩

11. Expected to be published in 2023, here is the first NIA ↩

12. Managing the risks of PFI contract expiry ↩

13. Phase 1 PFI expiry health learnings report ↩

14. Preparing for PFI contract expiry ↩

15. London Interbank Offered Rate and Sterling Overnight Index Average ↩