Infrastructure Investment Board - Terms of Reference
Role and purpose
1.
Successive studies by Audit Scotland and the Public Audit Committee
(PAC) into the Scottish Government capital programme have identified a
range of issues that should be addressed in order to strengthen overall
management of the capital programme.
2.
In response to PAC recommendations, and building on the work of the
IIG, the Infrastructure Investment Board (IIB) will scrutinise development and
delivery of the Scottish Government’s capital programme, with a view to
ensuring the following outcomes are delivered:




3.
improved cost and time estimating for capital projects;
improved project and programme management and governance at
portfolio level;
improved post project evaluation; and
improved prioritisation process across the programme as a whole.
Specifically, IIB will:






provide strategic scrutiny of high-value major infrastructure projects at
an early stage of development;
use robust management information to review the governance and
delivery of the infrastructure investment programme, including the
Infrastructure Investment Plan, and, where appropriate, specific major
projects;
provide advice to Ministers about capital investment priorities to inform
Ministerial decision-making;
review portfolio-level governance and decision-making structures for
capital projects to ensure these are fit for purpose;
explore new financing models (working with SFT); and
review projected future costs of capital investment that is being or in
future might be financed through revenue.
The IIB may choose to focus on different roles at different times of the
legislative and budgetary cycles.
4.
Over time IIB could also develop capacity to:



consider the impact of taxation on stimulating private investment in
public infrastructure as Scotland receives new powers;
oversee work across government to enhance the volume and quality of
information on the public infrastructure asset base in Scotland; and
to help broker and if necessary adjudicate on collaborative
investments, looking at the role of the Green Investment Bank,
Infrastructure UK and the European Investment Bank.
5.
All Scottish Government funded capital and revenue financed
investment projects will be within the remit of IIB, with the exception of Local
Government and Scottish Water. IIB will generally focus on projects that have
a capital value of over £100m, and which are at the strategic business case
stage. IIB will have sight of overview information relating to all capital projects
above £50 million and will call in such projects on a case by case basis when
there are issues that merit particular attention. IIB may choose to call in lower
value projects where these are novel or require separate scrutiny.
6.
IIB will review projects at an early stage of development, examining key
aspects of the strategic business case such as:
 contribution to the delivery of the strategic outcomes outlined in the
National Performance Framework;
 the strength of the business case and business need;
 value for money;
 affordability and financing options; and
 project governance and assurance.
7.
IIB may make recommendations to Senior Responsible Owners
(SROs) and SROs will be expected to comply with these recommendations or
explain why compliance has not been possible. Updates shall be provided to
IIB about the progress of its recommendations in relation to projects. Each
issue and each response will be considered on its own merits, but the IIB will
have the option to submit advice to the Principal Accountable Officer and
Ministers if it is not content with the actions taken in response to its
recommendations.