In this issue
£224m Welsh healthcare framework out to bid
Yes, Minister
The Tide is High
Morgan Sindall - Top of the Class
Stellar Solar Education
SEWSCAP Wins 'Client of the Year' at CE Awards
CEW Awards 2017 Sponsorship Opportunities
CEW Awards 2016: Winners Brochure



Yes, Minister

The First Minister of Wales, Carwyn Jones, has announced that Shan Morgan will be the next Permanent Secretary of the Welsh Government.

The Permanent Secretary leads the Welsh Government’s civil service and has responsibility for managing the £15 billion a year Welsh Government budget as well as leading the 5,000 staff that work for the organisation. Shan is currently UK Deputy Permanent Representative at UKRep in Brussels.

Commenting on the appointment, the First Minister said: “I am delighted to announce Shan’s appointment as the new Permanent Secretary of the Welsh Government. It is a pivotal role in delivering our ambitious programme on behalf of the people of Wales. Getting the right leadership at the top of the Civil Service in Wales is critical, and I look forward to working closely with her on the long-term strategic agenda set out in Taking Wales Forward. While delivery on the big issues that make a difference to people’s everyday lives remains the key focus of this government, Shan’s significant experience in the Diplomatic Service and in Brussels will also be a vital asset as we push to get the best possible deal for Wales during and after the UK’s exit from the European Union.”

The recruitment process for the Permanent Secretary role included a panel interview with the Cabinet Secretary and Head of the UK Civil Service, Sir Jeremy Heywood and senior representatives from within and outside government.

The appointment has been made by the First Minister in agreement with Sir Jeremy, who said:  

“I would like to congratulate Shan on her appointment as Permanent Secretary for the Welsh Government. Shan brings with her a wealth of highly relevant EU, international and cross-government experience and I very much look forward to working with her as part of the senior leadership of the UK Civil Service.”

Commenting on her appointment, Shan Morgan said:

“I am delighted to be joining the Welsh Government at a key moment for implementation of the new five-year Programme for Government – 'Taking Wales Forward'.  I look forward very much to working with the First Minister, Cabinet, officials and wider stakeholders to make a success of the ambitious commitments in the Programme and to tackling the challenges involved in promoting prosperity and opportunity for all in Wales. It has been a privilege to work for the Diplomatic Service in a variety of roles, and to play a part in developing the UK’s relationship with the EU over the years. Whilst I am sorry to leave so many good friends and colleagues in Brussels, I am very excited to be taking up the new role.”

Ms Morgan will take up her new job early in the New Year.


The Tide is High

An independent review into tidal lagoon energy in the UK has been completed - and now the UK Government is expected to decide by the end of the year whether the industry has a future, including a crucial first step in Swansea Bay.

If this form of renewable energy is supported, it could signal the dawn of a new industrial era, worth £15bn to Wales and the UK.

Those behind the new manufacturing and energy sector believe it can deliver sustainable, locally-produced electricity for about a hundred years.

Alongside this, a wealth of knowledge would build-up that could be exported around the world.

The plan would be for the first lagoon in Swansea Bay to be a prototype and the smallest. That would then be followed by lagoons in Cardiff - east of where Cardiff Bay is now - Newport, Bridgwater Bay, Colwyn Bay and west Cumbria, north of Workington.

That is Tidal Lagoon Power (TLP's) dream.

Former UK Energy Minister Charles Hendry has been gathering evidence for nine months for his inquiry, including visits to all the potential sites and discussions with industry. Now the wait for his conclusions is intensifying.

The Swansea Bay lagoon would cost about £1.3bn; the company has promised that half that money would be spent in Wales. So, what sort of Welsh businesses would be involved? The most obvious are civil engineering companies.

Monmouthshire construction firm Alun Griffiths Contractors is already contracted to work delivering some of the roadways. General Electric and Andritz Hydro have between them a £300m contract for the 16 turbines that would be used in Swansea Bay. The plan is that the final turbine assembly would be carried out locally.

Alongside that there will be work for companies involved in fabricated metals, steel casting and forging, and power electronics. The chief executive of TLP Mark Shorrock said: "We certainly think we'll be creating direct employment of 1,900 in Swansea. That ignores the supply chain. As we go through that, we see carpenters, electrical engineers and then there's an awful lot of steel in generators and turbines."

If the Swansea Bay project gets the go ahead, TLP will then speed up its preparatory work on larger tidal lagoons in Cardiff, Newport and Colwyn Bay. Each site will also need the same skills but on a greater scale.

The estimate is that four tidal lagoons in Wales could support 33,500 jobs during the construction and more than 3,000 when they are in operation. They could be worth £1.3bn a year in Gross Value Added (GVA), the measure of just how much a contribution sector or industry makes to the economy.

Mr Shorrock said there was the potential for Wales to become the industry base for exporting mass-produced turbines, generators and engineering around the world.

The other side of the coin is the cost of the electricity generated by tidal lagoons. It has been described by politicians as "expensive" referring to the guaranteed price - or strike price - that TLP is asking from the UK government.

TLP forecasts that its lagoons would generate power for 120 years and is seeking a 90 years’ contract at £89.90 per mega watt hour (MWh)

That would be below the £92.50 per MWh agreed for the new Hinkley C nuclear power station.

Swansea is the test lagoon but it is small.

TLP argues that lagoons after that will be bigger and more cost-efficient - and they are designed to last 120 years, 30 years beyond the subsidy and longer than nuclear power plants and offshore wind generators.

Comparing costs of electricity is complicated and can be controversial. The wholesale electricity market in the UK can be volatile. It can change in the hour and day.

For instance, according to the energy brokers Energy Solutions during the day on 21st October, the wholesale electricity price in the UK was £77.84 Mwh. Within two days it was down to £44.57 and another day later it had reached £107.11. The price being asked for by TLP is not linked to the consumer price index and so in real terms reduces with inflation. In practice, it’s very difficult to compare the costs of varying energy sources and different generations of power stations. For instance, the pricing of electricity from both Hinkley C and tidal lagoons also includes building costs.

Whereas the price of electricity from older power stations is more like housing costs after the mortgage has been paid off. In other words, operators of these do not have to worry about paying any interest. There is also the thorny question of the comparative ongoing cost of dealing with waste.


Morgan Sindall - Top of the Class

Morgan Sindall jumped to the top of the monthly league of contract wins in October and took pole position for the first time in the rolling 12 months’ total of work secured.

According to information specialist Glenigan, a trio of big project wins for the contractor tipped the tables. These wins included a £44m school in Tonyrefail for Rhonda Cynon Taff council, a £36.6m infrastructure package at Sighthill in Glasgow for the city council and a £23.6m multi-deck vehicle storage facility in Southampton for ABP.

The contractor is being chased by Kier, BAM and Laing O’Rourke bunched together over the year with just £20m worth of orders separating them. Over the year Morgan Sindall’s total was driven predominantly by a winning streak of building awards. Costain ranked as the country’s most successful civil engineering contractor based on work won over the last 12 months.

Among the other big contract awards last month Carillion signed a £92m deal for the Lincoln eastern bypass for Lincolnshire county council.


Stellar Solar Education

A Welsh school says it will save more than £26,000 a year on energy after becoming the first school in Britain to be powered from an external solar power station. St Richard Gwyn Catholic High School in Barry says the scheme will not only save it £650,000 over 25 years but also helps learning by teaching pupils about sustainability, science and technology.

Eventually the 761-pupil school also hopes to sell excess power generated back to the grid. The scheme began when solar energy firm Conergy UK approached the school because it was setting up a solar panel farm in a field it rented beside it. St Richard Gwyn High School pupils with Jane Hutt AM, head teacher Steven Grech and deputy head Steve Lord attended the opening of the solar power farm which powers the school's electricity.

The then acting head and now deputy head, Steve Lord, brokered a deal so the school got 60 solar panels in the field free in return for co-operating with the company as it carried out building work and laid pipes to the site. These panels now provide 70% to 80% of all the school’s power, which will rise to 100%, said Mr Lord.

“It’s a joint venture. I didn’t know what it entailed or the impact or benefits for students when the company approached us two years ago,” Mr Lord admitted. “They wanted to give something back to the school and we believe we are now the first school in Wales, Britain, and possibly Europe, to be powered by an external solar power farm. There are schools with solar panels. but this is different. It will save £26,000 a year for 25 years which we can use to improve the school environment.”

Head teacher Steven Grech (CORR), who came to the school last April, said: “This is a unique scheme. It will save money which can be used by the school and provides clean electricity. It’s a fantastic model that I think other schools should be interested in. It helps education in several areas like science, technology, geography and the fact that we use a solar farm to power our school today and for the next 25 years brings the theory alive. Students have a greater appreciation and understanding of how we can use natural clean resources as an energy source to power our school.”

Jane Hutt AM, presented the school with a commemorative plaque marking the opening of the solar farm. She said: “I am delighted to join you to open this ground breaking solar farm connection. Ground breaking because, I believe that St Richard Gwyn is the only school in Wales - possibly the only school in the UK - with an external connection to a solar farm. It is remarkable to think that this farm will provide enough renewable energy to power the school during daylight hours.”


SEWSCAP Wins 'Client of the Year' at CE Awards

Welsh construction won one of the top award categories at the national Constructing Excellence awards ceremony on Friday 4th November when South & Mid Wales Collaborative Construction Framework (SEWSCAP) was named client of the year.

It was the first local authority construction framework in Wales and has set the standard for subsequent arrangements in Wales and now across the UK.

SEWSCAP was set up in 2011 to share best practice in the procurement of 21st Century School projects, it is now on its second iteration. To win client of the year the judges looked for clear, consistent leadership, acceptance of core Constructing Excellence principles, and commitment to the vision set out in Construction 2025. The way projects are procured and delivered through SEWSCAP2 meets these criteria.

Like CEW, Constructing Excellence is a trusted and valued partner to UK government as well as the industry and its clients. The UK-wide network is instrumental in driving improvement through the supply chain, and the Awards play an important role to recognise and inspire high performance in the sector.

Welsh organisations consistently set a high benchmark at the national Constructing Excellence awards and this year was no exception. The message from Don Ward, CEO of Constructing Excellence was to spread the learning from SEWSCAP and all the other winners, as well as the regional winners from awards such as CEW’s in July.

Don Ward said: “We need to share and learn from one another to grow and improve the sector at a time when ‘Excellence with Collaboration’ is vital for the industry. So please use all our shortlisted winners to improve your business, your customers and your colleagues to deliver outstanding performance for all – and then you might be with us next year celebrating your own achievements!”

SEWSCAP is the largest cross-sector collaborative procurement framework in Wales, having delivered 45-plus projects with a total tendered value of £500m. Framework projects are based on shared objectives, processes and tools to facilitate a common, non-adversarial approach and there is a great deal of learning to be shared from the past five years and 45 projects.

Milica Kitson, CEO of CEW said: “SEWSCAP has brought about significant cultural change in south and mid Wales, with clients and contractors working as one body, sharing ideas and building long-term relationships. It is a model that should continue to set the standard for other regions. Congratulations to the team on their CE national award.”

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