Building and operating the UK s infrastructure Establishing your roadmap to success
Building for the future The UK government has issued a challenge to the sector to remedy a 50 year backlog in investment in the UK s infrastructure. From airports to roads and rail, the UK needs to fight to maintain its edge as a global leader. The government s National Infrastructure Plan outlines its vision for the future of the UK. It sets out the government s strategy for meeting these needs for the UK economy and its major commitments for investment in important infrastructure projects. Today, almost half of the 646 programmes in the plan are active, ranging from communications and transport, to energy, water and waste. The challenges are to: Stimulate long-term growth via investment in major infrastructure programmes Manage data and digital developments across the full lifecycle Make sectors sustainable commercially, environmentally and operationally Act now to play your part in a new tomorrow. Large energy consumers Payment Civil engineers Finance houses Insurers Building firms Energy generators Who needs to act? Road Government departments Housing developers Local authorities Funding authorities Rail Airport
What we can offer Advice Subject matter insight What we can help with Support Independent evaluation, assurance and guidance Delivery Supporting you to deliver your programme Economic competitiveness assessments Funding/ investment Risk control and assurance Procurement/ Supply chain capability Institutional strengthening Sustainability Climate change mitigation Social/Community impact assessments Customer demands Speak to EY A unique economic insight: ITEM Club and EY Eurozone Forecast. Independent of any political, economic or business bias, EY s team has access to the economics capabilities providing an unparalleled, detailed economic analysis and forecast of economic activity for the period ahead enabling it to ask better questions. Programme design and delivery Technology and Digitisation Market knowledge: Renewable Energy Country Attractiveness Index (RECAI) and the EY Center for Smart City Innovation. In addition to direct market-leading knowledge, our strategy and transactions experts have access to local as well as international insights, experience and relationships to support them in providing better answers. Payment operations End to end approach: Financial, economic, social, environmental, safety and performance benefits. Cross-sector and industry expertise and advice across all aspects of readiness is available, to help you to build a better working world.
1. Economic development 2. Funding and procurement If UK infrastructure is not brought up to the standard of other developed economies, by 2026 this could create an annual loss to the economy of 90 billion. How can I attract the right mix of investment? How can I demonstrate and deliver the economic benefits of this project? How do I deal with the impact of population growth? What are the main considerations I need to identify and prepare for? HMT plans for more than 375 billion infrastructure investment over the decade 2012-2022. The 2013 Plan has identified a pipeline of 650 planned infrastructure projects and programmes of which 45% is already in construction. Do I need help in structuring mega programmes from concept through to operation? How do I gain access to capital markets, sovereign wealth funds, private equity and major infrastructure funders? What value can I create through innovative funding, risk transfer and programme structures? How can I increase return on investment? Risk aware not risk averse Investment Gross value added, jobs, homes and place-making Mark Gregory + 44 20 7951 5890 mgregory@uk.ey.com Bridge between procurers of infrastructure and capital markets Coordination as Lead Advisor Transactions structured from concept to operation Manish Gupta + 44 20 7951 1702 mgupta@uk.ey.com 3. Industry capability, capacity and culture UK construction and infrastructure output contributes c. 10% of GDP and is forecast to increase by 23% by 2018. How can I ensure our changes deliver our strategic priorities? What s my role as a leader in developing a high performance culture and where do I start? How do I better understand and secure a suitable workforce and supply chain? How do I optimise funding, plan, design, build and operate, whilst also engaging with a low carbon and sustainable supply chain? Building a better working world Economic development Operation and maintenance Industry capability and capacity Roadmap to success Delivery and operational readiness Inception and concept design Disruptive technology Funding and procurement Procurement Environment and climate change Business case development 4. Environment and climate change Storms, flooding and drought already account for 10-25% of all delays or service interruptions to electricity, road and rail users. EY Analysis 2014 How do I identify and respond to the sustainability issues most critical to delivering my business objectives? Can I design mitigation measures for the risks my supply chain is exposed to? Who can help to improve confidence in monitoring and reporting on sustainability risk and opportunities? How can I secure alternative sustainable sources of energy supply? Geoff Smith Executive Director + 44 20 7951 3577 gsmith4@uk.ey.com Supply chain management and assurance Organisational and people change Improved industry capability and capacity Measure value of sustainability impacts Strengthen internal assurance Stakeholder support and additional investment Doug Johnson + 44 20 7951 4630 djohnston2@uk.ey.com 5. Disruptive technology and Big Data How do I make the case for technology-enabled business transformation? Big Data can enable up to 50% of operational performance improvement targets over a 5 year period. EY Analysis 2014 Malcolm Bairstow + 44 20 7951 3685 mbairstow1@uk.ey.com How do I future-proof the design and effectively integrate Information Technology with Operational Technology? How do I use analytics and decision-making tools to drive maximum value from my asset, customer, ticketing and operational data? How do I manage cyber risks, maintain quality data and still deliver a great customer experience? Digitisation Asset and customer data management Capital, customer, performance and safety benefits
EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited. Ernst & Young LLP, 1 More London Place, London, SE1 2AF. 2015 Ernst & Young LLP. Published in the UK. All Rights Reserved. ED None 1592915.indd (UK) 03/15. Artwork by Creative Services Group Design. In line with EY s commitment to minimise its impact on the environment, this document has been printed on paper with a high recycled content. Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material. ey.com/uk/advisory