Investment in the North-east of Scotland on the rise
Fourth investment tracker unveiled.
Tuesday, October 8, 2019
The fourth Investment Tracker capturing the scale of infrastructure projects planned for the North-east of Scotland reveals that £10.1bn of public and private investment is due to be delivered to benefit the region before 2030.
Aberdeen & Grampian Chamber of Commerce’s investment update, produced in partnership with EY, shows committed future investment in the region has risen by £1.7bn over the past 12 months. This comes on top of £800m worth of projects being completed since the 2018 Tracker was published, including Aberdeen Art Gallery, the Music Hall, Banchory Sports Village and the region’s new world-class events complex P&J Live.
Much of the investment in the document is scheduled for the next three years and includes projects involving transport & infrastructure, office & retail and leisure & culture, as well as health, sport & education.
Significant projects included in the investment pipeline include:
Digital connectivity - £77m
Aberdeen South Harbour - £350m
Kincardine Offshore Wind Farm - £500m
Blackdog Town Centre and Regional Food Hall - £150m
Peterhead Community Campus - £74m
Bio-Therapeutic and Food Innovation Hubs - £58m
Acorn CCS and hydrogen projects - £475m
Chamber chief executive Russell Borthwick said: “The Tracker tells a story of great progress for our regional economy with £2.5bn of infrastructure projects delivered since 2017 and more to come. The pace of change is breathtaking and a lot has happened in the last year with the highlight being the full opening of Europe’s largest new road scheme, the Aberdeen Western Peripheral Route.
“Looking to the future, we are seeing investment in new schools, healthcare facilities and quality housing, including a number of new town developments. This is accompanied by investment in new digital infrastructure which will make Aberdeen Scotland’s first gigabit city by 2021, benefitting residents and companies alike. But the story goes beyond bricks and mortar, the North-east’s bold investment programmes are creating an energised, connected and revitalised region, one that offers an unparalleled experience for residents and visitors alike.”
Projects included in the Tracker are those which have received planning permission or have funding committed. Focused on specific, often time-bound investment, it does not include offshore oil and gas-related investment or the investment being made by businesses in their own premises, equipment and technologies.
Derek Leith, EY global oil and gas tax lead and Aberdeen senior partner, said: “This year’s report demonstrates a resilient and vibrant economy in the North-east, built from a diversification strategy that is future-proofing the region for generations to come. We have seen projects reach completion but there is also an ongoing pipeline of further capital investment that will create jobs and grow the local economy.
“While the region was recovering from one of the worst downturns in the oil & gas sector, innovation and local leadership stepped up. As a result we are at an exciting time with many innovation projects that will see Aberdeen become a centre of excellence in food, life sciences, and, of course, reassert our position as a world leader in the energy sector.
“This is a story of the local business community and local leaders coming together to be greater than the sum of its parts. The very first tracker was very much a vision – a map of what was planned. I am proud that in this fourth edition we can now show actual achievement.”