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8. Implementation Planning

8.1. Overview

Implementation of SFT as needs to be considered at several levels:

• The identification, launch and implementation of SFT as an initiative;
• The establishment of SFT as an organisation;
• The need for SFT, whilst it is in organisational development stages, to make its mark, and commence early activities in an effective manner.

8.2. The Development Path for SFT

Therefore there are a number of key milestones on the development path for SFT.

A detailed SFT implementation plan will require to be drawn up by the shadow SFT management team, however the development path for the SFT organisation ( SFT Development and Delivery, and SFT Finance and Investment), and key milestone dates, are estimated as shown below.

Figure 9. Implementation of SFT

As can be seen in the above diagram the suggested SFT implementation plan is to first establish SFT and task it with the detailed business planning for its activities and SFT Finance and Investment.

The purpose of the SFT Finance and Investment launch would be to secure private sector investment to sit alongside public sector investment in order to capitalise SFT. This capitalisation could have several uses including creation of an investment fund in order to allow SFT to invest in projects, envisaged as being on an NPD basis.

8.3. Implementing SFT's Activities

As regards establishing the full range of SFT activities, this too will be developed over time. This reflects the immediate potential of some of the activities, whereas others will require more development and planning, and some would require legislative changes and further devolved powers.

This development path could be seen as three stages:

i) Early activities

ii) Development Scope

iii) Future Aspirations

So, in parallel with the organisational and corporate development path for SFT there are a number of early activities identified, which could be undertaken from autumn 2008.

8.4. Early SFT Activities

• Establish consolidated QA approach to procurement, including implementation of a major projects review group (for significant projects);
• Commence programme delivery of hub pathfinders, for community based infrastructure;
• Establish programme support arrangements for residual waste investment;
• Establish programme development arrangements for a future schools investment programme;
• Provide guidance, structuring and compliance for ongoing NPDPPP programmes;
• Commence development/delivery of an on-balance sheet Local Authority bond issue;
• Undertake further detailed development of innovative asset provision models;
• Commence development and piloting of a funding and aggregation model for the housing sector.

In the medium to longer term SFT may develop as follows:

8.5. Medium Term Development Scope

• Introduction of Underpinning for new NPDPPPs and associated funding aggregation (including competition of panel funding);
• Roll-out of a funding and potential aggregation model for the housing sector;
• If found to be deliverable, development and implementation of innovative asset provision models in appropriate sectors.

8.6. Future Development Scope

• Coordinator of Scottish Government bond issue;
• Advisor on Scottish finance policy in relation to infrastructure, including tax breaks for infrastructure bond investment and advising on impact of Eurostat accounting.

8.7. Stakeholder Support

The formal consultation process in relation to the Scottish Government's paper of December 2007 has largely run in parallel to the production of this SBC, however, the consultation process completed on the 14 March 2008 therefore allowing the SFT Delivery Team to review all the responses in order to inform this SBC.

The Delivery Team has not been tasked with any further stakeholder consultation in developing the Strategic Business Case though it is recognised that this will be required. Going forward a consultation and communication plan will be put in place by the shadow SFT management team in order to inform the detailed development of SFT and to ensure cross public and private sector support for it.

8.8. Implementation Risks

Drawing from the consultation responses and work carried out by the Delivery Team, a number of key implementation risks have been identified. A more detailed risk matrix will require to be developed reflecting SFT's implementation stages.

Table 4. Key Implementation Risks

8.9. Interfaces for SFT

In Chapter 2 the existing infrastructure delivery landscape was explained, and it is into this landscape that SFT has to fit, whilst providing the desired cross cutting overview of infrastructure investment across sectors and institutional boundaries.

The issue of interface management also reflects some of the responses to the consultation paper which identified a number of potential overlaps for SFT with existing bodies and functions. The initial analysis of this infrastructure delivery landscape suggests that SFT will relate to existing bodies in a number of ways:

• It may overlap or merge with them;
• It will have shared activities with them;
• It will require to liaise and consult with them.

Some of the existing organisations and the possible relationship with SFT is set out below:

Table 5. Relationship between SFT and Other Public Bodies

8.10. Measuring Success

SFT's success over time will be measured against its detailed business plan. The initial business plan, and the annual versions thereafter will have to be agreed by Scottish Ministers, and SFT's management team will have to report the outturn against plan

As standard practice, performance of the SFT management team should be incentivised and measured against delivery of the business plan.

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