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Tom McLean
Technical Officer
FCERM Branch
Welsh Government
02920 370 244
New FCERM Project Appraisal
Guidance for Wales
Kevin Keating
Principal Engineer
Mott MacDonald
0151 482 9983
Quick Project Overview
What We Have Now
• Flood and Coastal
Defence Project
Appraisal Guidance
(FCDPAG), 2001
• Flood and Coastal Erosion
Risk Management
Appraisal Guidance
(FCERM-AG), 2010
• Simplify & Demystify
• 5 Case Business Model (5CM)
• Scalability
• Wider Benefits
• Wellbeing of Future Generations
• Natural Flood Risk Management
The Brief
May 2016
March 2017
A New PAG for Wales
• Appointed Mott MacDonald
• Review Existing Guidance
• User Survey
• Interview Risk Management Authorities
• Workshops
• Draft Nearing Completion
A New PAG for WalesThe next steps…
April 2017
July 2017
• Finalise Draft Guidance
• Share with Key Stakeholders
• Case Study Trialling
• Publish
User Feedback
“Problem definition could take a
more holistic approach (wider
than strictly FCERM) which could
generate more scope for
integrated solutions”…
Problem Definition:
“FCERM-AG always
seems to over
complicate a process”
Environmental issues: “The
guidance is poor for this
aspect…. links with
ecosystem services and the
use of appraisals for NFM
approaches is critical.”
“Not a balanced
approach - Members
have said that there is
too much emphasis on
environmental
considerations“
vs
vs
What users told us
What users told us
“Generally we use
Consultants for our
PAR’s so it’s difficult to
answer the questions”…
“PARs were best produced as a joint effort between LA and consultants”
“Currently skills and
resources are the biggest
constraint in producing
PARs in-house”
“Would like to see MCM
training for officers
rolled out so they can
better check consultant’s
output or undertake basic
analysis themselves”
Thoughts on Existing Guidance
Thoughts on Existing Guidance
• Treasury Green Book
– Value for money, objective led appraisal, 5CM, proportionate
• FCERM AG (& FCDPAG)
– Useful, too long & too much in it (>250 pages), 5CM?
– That much wrong with PAGN (30 pages)?
• Scottish Guidance
– Simpler and more accessible, 5CM?
• England’s 6 Year Prog. & Partnership Funding policy
Applying the 5CM
What’s in a business case?Enable a decision to invest (in an FCERM asset)
Exploring options &
preferred approach
Funding – how
much, who from and
when?
Maintaining the asset /
investment
Community & political buy-in
Management
Better Business Cases – The 5CM
5 Themes or “Cases”
Strategic Case
Economic Case
Commercial Case
Financial Case
Management Case
Evolving Development
1. Strategic Outline Case
2. Outline Business Case
3. Full Business Case
(Or Short Form Business Case)
The 5CM Stages in Detail
Mandate
& Initial
Assurance
OBC
Assurance
SOC
Assurance
FBC or
SFBC
Assurance
Existing data
Define
problem
Engage
Objectives
Do Nothing
Options
Eco. + Strat.
“cases”
OBC planning
New data (GI,
env, topo etc)
Modelling
Optioneering
Engage
Assess options
Id. scheme
Outline design
All 5 “cases”
FBC planning
New data (GI,
env., topo etc)
Engage
Consents
Secure funding
Procure
contractor
Update 5
“cases”
Planning
SOC OBC FBC Delivery
Detailed
design
Engage
Construction
Handover
Deliver
outcomes
Short Form
Direct to OBC
Guidance Structure & The 5CM
Sections:
1 & 2. Introduction & Policy Setting
3. Strategic Outline Case (SOC)
Section for each “case” of the 5CM
4. Outline Business Case (OBC)
Section for each “case” of the 5CM
5. Full Business Case
6. Short Form Business Case
Wales vs England
Different Legislation
Well-being of Future
Generations Act
Different Prioritisation Process
Different Emphasis on Economics
Multi-Coloured Manual – key guidance and data
BUT: Value for money criteria for preferred option:
1. BCR > 1
2. Incremental BCR > 1 (cf. Do Minimum)
Result: Less focus on economics / simplified
Remember: No OM1 driver in Wales
Always Shortlist a NFM / MSfW Option
Upstream
NFM
Similar on Socio-Economic Benefits
• Wider objectives… Jobs, amenity, regeneration
• Multiple funding sources
• “Joined up” investment
Questions?
Tom Mclean is Welsh Government’s Project Manager
Tel: 02920 370 244
Email: [email protected]
Natalie Newton is Mott MacDonald’s Project Manager
Tel: 02920 467 871
Email: [email protected]
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