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Value for Money of Motorway and Trunk Road Investment

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Value for Money of Motorway and Trunk Road Investment National Assembly for Wales Public Accounts Committee Value for Money of Motorway and Trunk Road Investment June 2015 The National Assembly for Wales is the democratically elected body that represents the interests of Wales and its people, makes laws for Wales and holds the Welsh Government to account. An electronic copy of this report can be found on the National Assembly’s website: www.assembly.wales Copies of this report can also be obtained in accessible formats including Braille, large print; audio or hard copy from: Public Accounts Committee National Assembly for Wales Cardiff Bay CF99 1NA Tel: 0300 200 6565 Email: [email protected] Twitter: @SeneddPAC © National Assembly for Wales Commission Copyright 2015 The text of this document may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not used in a misleading or derogatory context. The material must be acknowledged as copyright of the National Assembly for Wales Commission and the title of the document specified. National Assembly for Wales Public Accounts Committee Value for Money of Motorway and Trunk Road Investment June 2015 Public Accounts Committee The Committee was established on 22 June 2011. The role of the Public Accounts Committee is to ensure that proper and thorough scrutiny is given to Welsh Government expenditure. The specific functions of the Committee are set out in Standing Order 18. The Committee will consider reports prepared by the Auditor General for Wales on the accounts of the Welsh Government and other public bodies, and on the economy, efficiency and effectiveness with which resources were employed in the discharge of public functions. Current Committee membership: Darren Millar (Chair) Mohammad Asghar Welsh Conservatives Welsh Conservatives Clwyd West South Wales East Jocelyn Davies Mike Hedges Plaid Cymru Welsh Labour South Wales East Swansea East Sandy Mewies Julie Morgan Welsh Labour Welsh Labour Delyn Cardiff North Jenny Rathbone Aled Roberts Welsh Labour Welsh Liberal Democrats Cardiff Central North Wales The following Member was a Member of the Committee during this inquiry: William Graham Welsh Conservatives South Wales East Contents Chair’s Foreword ............................................................................................................. 7 Recommendations .......................................................................................................... 9 1. Introduction............................................................................................................ 12 Background .................................................................................. 12 Welsh Trunk Road Network ........................................................... 12 Terms of scrutiny ...................................................................... 14 The Committee’s approach ........................................................ 14 2. Prioritisation of Major Projects ................................................................... 16 Background .................................................................................. 16 Evidence from respondents ........................................................... 17 Evidence from the Welsh Government ........................................... 18 Our view ....................................................................................... 19 3. Welsh Transport Appraisal Guidance (WelTAG) ................................ 21 Background .................................................................................. 21 Evidence from respondents ........................................................... 21 Evidence from the Welsh Government ........................................... 22 Clarification from the Public Policy Institute for Wales ................... 23 Our view ....................................................................................... 23 4. Project Management and Procurement .................................................. 24 Background .................................................................................. 24 Evidence from respondents ........................................................... 25 Procurement .............................................................................. 25 Early Contractor Involvement ........................................................ 26 Evidence from the Welsh Government ........................................... 27 Our view ....................................................................................... 28 5. Statutory Undertakers and Utility Companies ................................... 29 Background .................................................................................. 29 Evidence from respondents ........................................................... 30 Evidence from the Welsh Government ........................................... 31 Our view ....................................................................................... 32 6. Preventative / Reactive Maintenance ...................................................... 34 Background .................................................................................. 34 Evidence from respondents ........................................................... 35 Evidence from Welsh Government ................................................. 37 Our view ....................................................................................... 38 7. The structure and review of the Trunk Road Agents .................... 40 Background .................................................................................. 40 Evidence from respondents ........................................................... 41 Evidence from Welsh Government ................................................. 43 Our view ....................................................................................... 43 8. Funding Cycles for Trunk Road Maintenance .................................... 45 Background .................................................................................. 45 Evidence from respondents ........................................................... 45 Evidence from the Welsh Government ........................................... 49 Our view ....................................................................................... 51 9. Information Management ............................................................................... 52 Background .................................................................................. 52 Evidence from respondents ........................................................... 53 Evidence from Welsh Government ................................................. 54 Our view ....................................................................................... 54 10. Skills and Capacity: Maintenance and Major Project Delivery ... ................................................................................................................................... 56 Background .................................................................................. 56 Evidence from respondents ........................................................... 56 Our view ....................................................................................... 58 11. Network Resilience, Communication and Incident Management ................................................................................................................... 59 Background .................................................................................. 59 Evidence from respondents ........................................................... 59 Evidence from Welsh Government ................................................. 62 Our View ...................................................................................... 64 Annexe A: Witnesses .................................................................................................. 65 Annexe B: List of written evidence .................................................................... 66 Chair’s Foreword Over the past two years, the Public Accounts Committee has developed new ways of working and undertaken a series of member initiated inquiries in addition to those which follow reports provided by the Auditor General. In December 2014 the Committee agreed to undertake such an inquiry into the maintenance of and investment into the Welsh trunk road network. Our work considered whether the approach taken by the Welsh Government in delivering major trunk road projects and maintenance of the existing network had provided value for money. Our inquiry drew on the findings of a January 2011 report by the Auditor General on Major Transport Projects, which our predecessor Committee was unable to consider fully. That report covered arrangements for the delivery of Welsh Government-funded schemes for trunk roads, as well as for other local roads and rail schemes. It found that even whilst taking into account higher than expected price inflation in relation to construction, budget constraints and reprogramming decisions, projects had still cost more and taken longer to deliver than expected. The evidence we heard suggested that timescales for major projects were not specific enough and there was a lack of consistency and transparency around decision-making and budgets. Effective project management, followed by robust planning, is essential to ensuring major transport projects are completed on time
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