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Fife Energy Park: Phase One Evaluation
Phase 1 of the development of Fife Energy Park (FEP) involved investment in infrastructure redevelopment as part of a programme to create a viable business location for the Energy sector in Scotland and support the emerging renewable energy sector. This review analyses the impacts and benefits of Phase 1 activity over the period 2006 to 2009.
The methodology consisted mainly of desk based research, including a review of key policy and strategy documents. The study was also informed by a Scottish Enterprise (SE) review of project activity for 2006-2009, based on a detailed review of internal SE project files.
The project delivered a number of physical benefits, including: infrastructure improvements; building upgrade and demolition; upgrade of utilities; earthworks; and facilities management. Despite investment in these physical outcomes, there are a number of major outstanding issues that need to be addressed at FEP, such as coastal defence risks. As well as the clear physical outputs, a range of economic benefits were also achieved, including: the generation of 230 net additional jobs and £11.3m total GVA by the end of year 3; and the creation of 115 net additional construction MYEs with total net additional GVA of £5.2m through Phase 1 investment. It is estimated that investment in Phase 1 activity at FEP has generated a total of £16.6m net additional GVA at the national level over the 2006 to 2009 period. It is suggested that the project will also deliver a range of qualitative benefits, supporting the wider regeneration of the area and improving perceptions of economic viability. Overall, the management and delivery of the Phase 1 investment at FEP was robust, with no major issues raised, although a small number of issues and learning points were identified.
The following recommendations for future investment at FEP were made: investment in the quay walls should be prioritised in order to safeguard the economic impacts generated through Phase 1 investment; the on-site security arrangements should be reviewed; there is a need to review SE policy regarding accounting procedures, to identify the true cost of owning/operating FEP; the de facto lease arrangements with the on-site tenants should be either completed or acknowledged as incomplete as a matter of urgency to formalise the position of SE; and the Energy Industry Team at SE should continue discussions with the Scottish Government to promote the sector further, raise awareness of the growth opportunity and secure increased financial resource to attract new investment.
Full report (361 KB, pdf)
|Theme/Sector||Supporting key sectors, Energy, Investment, Sectors|