Major transport infrastructure improvement projects: the expansion of the Nottingham’s tram network Lessons from the NET Phase 2 project Will Rossiter Transport-Led Development in the Midlands 2016 Birmingham, October 2016.

Overview Findings from a research project investigating the local economic impact of NET Phase 2 Too early to assess overall impact on Nottingham Construction phase impacts quantified Wider impacts addressed qualitatively Particular focus on procurement Emphasis on transferability to other projects/localities

The extended NET system

Economic context – recession and sluggish recovery Source: NIESR June 2014

Youth unemployment ONS Crown Copyright, 2015. ‘Annual Population Survey’, January-December 2004 to January-December 2014. From NOMIS

Local economic impacts: NET 2 Employment Locally the works stage of the NET 2 project has supported around 2,900 years of employment; We can estimate the scale of the economic impact associated with this employment. Locally, the Works stage of the Phase 2 project has generated GVA of £108 million, with a further £61 million regionally; Work to estimate the local and regional impact of supply chain expenditure is ongoing – but will certainly increase these impact estimates. Source: ESRB/NTU Calculation based on Tramlink monitoring data

Construction employment ONS Crown Copyright, 2015. ‘Annual Population Survey’, January-December 2004 to January-December 2014. From NOMIS

Emphasis on local economic impact Unusual emphasis on local impact Procurement strategy “Granular” and targeted Recession accentuated this focus Evidence of increasing adoption elsewhere NCC ‘Employer Hub’ has played a key role in realising local impact

Training and recruitment Collaborative approach of the Employer Hub, local colleges, Job Centre Plus in supporting local training and recruitment initiatives undertaken by Taylor Woodrow and Alstom. Important role in helping to deliver the social benefit from the scheme to local residents. A key lesson for project sponsors in other regions seeking to maximise the social benefit to local communities associated with major infrastructure projects.

Local procurement The Employer Hub played a significant role in helping local firms access supply opportunities associated with the project. It will never be possible to procure every input required for a project of this kind locally. It often made economic sense for prime contractors to procure locally where they could.

Wider economic impacts Extension of labour market catchment areas; Stimulating inward investment/city image and quality; Unlocking previously hard to access sites for development; Stimulating growth through addressing transport network constraints; Land and property value increases; and Transit-orientated development.

Lessons The importance of signalling the commitment to local economic impact through the procurement; Promoter’s investment in capacity to capture local benefit (Employer Hub); Public funding in enabling training initiatives to facilitate access to employment opportunities by local unemployed; and Early engagement with schools/colleges to raise awareness of opportunities linked to the project.

Lessons Co-ordination and planning of NET Phase Two, alongside other major transport infrastructure projects; Skills – generic and specific Project management/planning OLHE workers PFI funding model sustainability?

Further information Will Rossiter william.rossiter@ntu.ac.uk 0115 8482875 Full report: https://www4.ntu.ac.uk/apps/news/187690-1/Report_reveals_tram_projects_%C2%A3100m_economy_boost.aspx Economic Strategy Research Bureau http://www.ntu.ac.uk/nbs/business/specialist_centres/esrb.html