New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802

PDF Published: Thursday 23 Mar 2023 (PAS062023R1)

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Overview
Report

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Overview
Report
- Introduction
- Background
  - The landscape for procuring, managing and operating ferry vessels on the Clyde and Hebrides network
    
    Governance arrangements for vessels 801 and 802
    
    Background to the project
- Overall Conclusions
- The procurement procedure
  - Initial procurement stages
    
    Requirements of the builder’s refund guarantee
    
    Pre-qualification Questionnaire stage
    
    Invitation to Tender stage
    
    Approval and announcement of the preferred bidder
  - Contract negotiation
  - Awarding the contract
    
    Submission to Scottish Ministers
    
    Written authority
    
    CMAL’s concerns and how they were communicated to Scottish Ministers
    
    Approval of the contract by Scottish Ministers
- Initial work to build the vessels
  - Commencement and sequencing of the work
  - FMEL decision making
  - Launch of vessel 801
  - Quality standards
    
    Change requests
  - Governance arrangements
  - Cancelling the contract
- Delays and cash flow problems before nationalisation
  - Milestone payments
    
    Financial and non-financial support for FMEL
    
    Support provided by CMAL
    
    Meeting with the First Minister
    
    Support provided by the Scottish Government
    
    Compliance with loan conditions
    
    Claim for additional costs
    
    Dispute resolution mechanism
    
    Mediation
    
    Expert Determination
    
    Court of Session
- Nationalisation
  - Events before nationalisation
  - The decision-making process to nationalise FMEL
  - Arrangements after nationalisation
    
    Following the money
    
    FMEL’s financial records
  - Progress with the vessels
    
    Problems with cable installation on vessel 801
    
    Performance reporting to the Scottish Parliament
  - Future of the yard
- Lessons learned from the project
  - Changes implemented for future vessel projects
    
    CMAL changes
    
    Transport Scotland changes
    
    Changes made by the Scottish Government
    
    Alternatives to builder’s refund guarantees
  - Future transport ferries governance arrangements
- Annexe A: Key decision makers and accountable officers
- Annexe B: Timeline of key events
- Annexe C: Extracts from minutes
- Annexe D: Written evidence and engagement
Sources

Image: Exhibit 2: Current governance arrangements to deliver vessels 801 and 802

Image: Scottish Ministers responsible for the portfolios covering transport and finance

Image: Scottish Ministers responsible for the portfolios covering transport and finance (continued)

Image: Scottish Government, Transport Scotland and CMAL representatives

Image: Annexe B: Timeline of key events

Image: Exhibit 1: Initial governance arrangements to procure and deliver vessels 801 and 802

Image: Meeting with the First Minister

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Last Updated: 7/7 5:31pm

Image: Introduction