Advisory Services to the Scottish Government on the formation of "hub"
We advised the Scottish Government on "hub," an initiative to establish five public-private joint ventures across Scotland to deliver some £2 billion of joint service and social infrastructure facilities. We provided a range of services including identification of benefits, assessment, and management; value for money assessment; an update of the business case; advice on governance arrangements; infrastructure commercial due diligence; stakeholder engagement strategy and management; and advice on corporate and funding structures, procurement strategy, and the development and use of standardised contracts.
The "hub" programme establishes joint ventures through which the public sector can reduce procurement and design costs; streamline construction, operation, and maintenance of the facilities; and realise savings through working jointly. The "hub" programme is being promoted by Scottish Futures Trust (SFT), which operates at arm’s length from the Scottish Government. For the purpose of delivery, Scotland has been divided into five territories, each with a population of approximately 1 million. The participating public sector organisations include SFT, health boards, local authorities, the Police Fire and Ambulance Services, housing associations, and further education colleges.
We helped overcome a number of challenges by working exclusively with a UK pathfinder comprised of 17 public sector bodies to obtain stakeholder buy-in and ready them for inclusion in the Official Journal of the European Union. This required a clear understanding of procurement issues, a sound stakeholder engagement strategy, and knowledge of Central Government support for costs. Our government procurement advice and commercial due diligence expertise was invaluable. We helped attain private-sector buy in by achieving sufficient market interest to launch procurements for a development partner in each territory, initiating market soundings and hosting industry days. We worked with public sector stakeholders to improve their capabilities and assemble a viable project pipeline. We worked with team members to develop attractive structuring for the joint venture, project finance in accordance with the Minister’s objectives, and contract documents with familiar contract language.
Three joint ventures have been established and the remaining two are at the preferred bidder stage. Facilities are now being delivered and one is now operational.
- Groundbreaking programme using public-private joint ventures to deliver infrastructure more efficiently
- We helped overcome two major challenges of gaining public sector and private sector buy-in
- We supported hub in developing business cases, assessing value for money, identifying appropriate funding structures and implementing governance and standardized contracts