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Published by The Scottish Parliamentary Corporate Body
New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802
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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: Introduction
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: Written authority
Image: Meeting with the First Minister
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