Connecting the country through Designated Funds

Innovation fund plan

Contents

1 Foreword

2 At a glance

4 Introduction

6 Connecting to the strategic ambition

8 Fund objectives

10 Funding criteria

12 Innovation project examples

14 Funding process

21 Get in touch

We have five designated funds: � Air quality � Cycling, safety and integration � Environment � Growth and housing � Innovation.

Each fund has its own Fund Plan setting out what it will achieve, how it will deliver Highways England’s goals and the criteria for funding.

We’re already creating value through funds, but we have much more to do. By working together, we can continue

to deliver environmental, social and economic benefits to those who use, live or work on or near our strategic road network.

We’re here to help turn your idea into action. I encourage you to get in touch with the designated funds programme team today via email at designatedfundscheme@

highwaysengland.co.uk.

Vinita Hill Director, Designated Funds October 2018

ForewordIn the Road Investment Strategy government made available £675m of ring-fenced designated funds to help improve the surroundings of our strategic road network (SRN), the motorways and major A roads in England, in a way that supports and protects people and the things we value for quality of life, both now and in the future.

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Fund: Innovation Designated Fund (IDF).

Purpose: To exploit the potential that innovation holds to transform transport through new technologies and techniques in road construction, maintenance and operation. This has the potential to revolutionise what it means to travel on our roads.

Total fund allocation: £150m.

Start date: Our Innovation fund was defined in our Road Investment Strategy 2015-2020 (RIS1).

At a glance

Topics: The fund covers five sub-topics:

Design, construction and maintenanceApplying the principles of automation and repeatable digital techniques to the complex external environment of road design, construction and maintenance.

Connected and autonomous vehiclesFacilitating a staged transition as technology and associated infrastructure evolves to take us from current day, when vehicles are only capable of limited connected or autonomous functions, through to when our network is made up of fully connected and autonomous vehicles.

Customer mobilityAdapting to meet evolving mobility demands, enabling seamless journeys for our customers as the way in which our customers travel, both on and off our network, transform over the coming years.

Energy and the environmentSupporting a transition from conventional petrol and diesel vehicles on our roads to a zero emission fleet, whilst also providing efficient and less polluting journeys for our customers by reducing congestion on the SRN.

OperationsEvolving our operations, traffic management and customer service as the road network becomes increasingly linked through telecoms networks and connected assets and responding to the changing business models and patterns of use on the network.

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The UK is a world leader in the use of intelligent transport systems (ITS) on its road networks (Department for Transport’s report on ITS in the UK, August 2014). In terms of the strategic road network, the then Highways Agency provided innovative solutions, in particular in the smart motorways environment, and Highways England will be delivering more of these during the period 2015/16 to 2020/21.

Looking over the RIS1 period, while Highways England will deliver more roadside technology, there is a

real opportunity to also build on an increasing interest and motivation to deliver in-vehicle services. The commitment to deliver the new generation traffic management system (CHARM), in partnership with Rijkswaterstaat in the Netherlands, will open up opportunities for these types of services.

Phil Proctor Innovation Designated Fund Lead

Introduction

The RIS strategic vision sets out the potential that innovation holds to transform transport by exploiting new technologies and techniques in road construction, maintenance and operation. This has the potential to revolutionise what it means to travel on our roads.

Improved gathering and dissemination of data, together with more information provision, will lead to better informed drivers and improved journeys. For the longer term, increasing connectivity and automation can enhance road safety, reduce congestion and reduce costs.

With smart motorways we have already begun to see the positive effects that innovative approaches can have, but that is just the tip of the iceberg as we move towards a technology-led SRN. To help us get there, the Government created a £150 million innovation fund to allow Highways England to place increasing emphasis on the future technologies that will positively impact users and the network infrastructure. This will involve the full range of research, development, demonstration and deployment activities, while also supporting innovation and capitalising on progress made internationally. The Government is determined that we are at the vanguard of road-sector innovation.

Our vision and ambition for the next 25 years is to revolutionise our strategic roads to create a modern strategic road network (SRN) that supports a modern country. We aspire to a network that will be smoother, smarter and sustainable by 2040. The designated fund programme is central to achieving this vision.

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Connecting to the strategic ambition

There is further direction set out in the wider Strategic Business Plan/Road Investment Strategy documents which state that we will use designated funding to actively encourage more innovation and use of technology to support improving average delay, safety on roads and environmental considerations.

� The emerging vision for intelligent mobility sets out the principles to use intelligent transport systems for the safe, efficient and sustainable movement of people and goods on the strategic road network. This supports the Concept of Operations published in June 2015.

� The Operational Technology Strategy produced by Traffic Technology Division outlines approaches to

management and maintenance of operational technology assets, including reference to safer vehicles (connected and autonomous).

� The innovation, technology and research strategy sets out how Highways England will take advantage of innovation to deliver step change improvement in the construction, maintenance and operation of the strategic road network (SRN).

All innovations supported by designated funds must be considered in view of the company’s three imperatives - safety, customer service and delivering the RIS.

Highways England published Connecting the Country: Planning for the Long Term, which is a vision of the future of the strategic road network in 2050. This identifies steps to the future along the five themes which will be used to identify future challenges and prioritise activities:

Design, construction and maintenanceApplying the principles of automation and repeatable digital techniques to the complex external environment of road design, construction and maintenance.

Connected and autonomous vehiclesFacilitating a staged transition as technology and associated infrastructure evolves to take us from current day, when vehicles are only capable of limited connected or autonomous functions, through to when our network is made up of fully connected and autonomous vehicles.

Customer mobilityAdapting to meet evolving mobility demands, enabling seamless journeys for our customers as the way in which our customers travel, both on and off our network, transform over the coming years.

Energy and the environmentSupporting a transition from conventional petrol and diesel vehicles on our roads to a zero emission fleet, whilst also providing efficient and less polluting journeys for our customers by reducing congestion on the SRN.

OperationsEvolving our operations, traffic management and customer service as the road network becomes increasingly linked through telecoms networks and connected assets and responding to the changing business models and patterns of use on the network.

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Fund objectives

In the smart motorways arena, Highways England will investigate improvements to the operation of smart motorways to move towards a more autonomous system. This will feed into the longer term intention to deliver instructions into vehicles by using on-board equipment instead of the roadside technology that is currently used.

Alongside this is the ambition to consider the provision of better connectivity to support in-vehicle services.

There is already the capability for drivers to receive in-vehicle information via mobile phones and other personal devices. Highways England also provides traffic information services through the Highways England website.

An important part of Highways England’s work will be collaboration with partners such as local

authorities, Transport for London and academia, to collaboratively deliver innovative traffic management solutions and provide complete door to door services to customers, including the development of appropriate applications (apps).

The Innovation Designated Funds can also be used to deliver outcomes for safer vehicles, as part of Highways England’s health and safety plan. This is supported by the British Road Safety Statement, published by DfT in December 2015, which states that key priorities for road safety include promoting the development and adoption of connected and autonomous vehicles technologies in a way that maximises safety benefits.

To support Highways England’s smart roads strategy, the Innovation Designated Fund can be used to deliver capital trials of various innovations. These include new technology to provide traffic management on roads such as expressways to ensure the equipment provided is appropriate for the environment.

There is an element of the unknown, with technology developments changing so quickly that there may be new technology on the market within the next five years that we are not already aware of. We must consider this in the light of the services that Highways England needs to deliver. This is where collaboration with industry (vehicle manufacturers and other industry that uses the strategic road network) is key to ensure Highways England is up to date with emerging developments. This collaboration has already started, for example, with Nissan, Jaguar Landrover and Newcastle University, and the Innovation Designated Funds will support the continuation of this engagement.

Innovation Designated Funds are not just about technological innovations. Innovation also brings focus on new approaches to infrastructure, asset

delivery, asset management and sustainable transport. For example, using sensors to provide asset information and trialling new materials to reduce maintenance requirements.

Maintainability and supporting asset management efficiency savings is of paramount importance. A key RIS 1 aspiration is to achieve and demonstrate maintenance and construction efficiencies. Highways England needs innovation to support cost reductions in road maintenance and construction. For example, sensors from connected vehicles that may detect potholes, factors affecting ride quality and slip resistance, and even soft estate grassland and foliage which are affecting signs and signals.

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Funding criteria

The Innovation Designated Funds must contribute towards the delivery of the aspirations set out in the innovation, technology and research strategy and associated goals. In considering the application of designated funds, there are several criteria. These build on the overarching strategy as well as the narrative above regarding designated funds.

Development of an Innovation Designated Funds delivery approach must reflect the 8 key outcomes (focus areas) set out in the Government’s road investment strategy:

1. Making the network safer2. Improving user satisfaction3. Encouraging economic growth4. Delivering better environmental outcomes5. Keeping the network in good condition6. Supporting the smooth flow of traffic7. Achieving real efficiency8. Helping cyclists, walkers and other

vulnerable users of the network

Interventions need to be deliverable, scalable and targeted, based on contribution toward key performance indicators (KPIs) and performance indicators (PIs) by the end of RIS1.

The programme needs to reflect interrelationships with key roads investment programmes and wider supporting initiatives. Interventions need to be measurable and outcome focused, ideally looking forward to implementation as business as usual in the future (road period 2 and beyond).

The process for taking forward the development of the Innovation Designated Funds programme is outlined overleaf. The following sections provide an outline of key interventions and identify scheme packages to be taken forward.

Key principlesWe will assess your proposal for funding against these key principles. Your proposal must:

� Demonstrate it is an activity deemed beyond business as usual and adds value to our network

� Link to one or more of the themes within the 2050 vision

� Be on the Highways England estate or have a clear relationship with it

� Maximise opportunities for joint funding or partnership

� Demonstrate value for money.

� The spend must be capitalised

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Innovation project examples

Delivery of the products and commitments will be led by the Safety, Engineering and Standards directorate in collaboration with colleagues in delivery parts of Highways England (Operations, Major Projects and IT). This will make best use of existing programmes such as the roads renewals programme, avoid repetitive working and utilise delivery funding efficiently.

As the outcomes of interventions are not certain, project outputs and outcomes need to be reviewed and the programme adjusted accordingly. There also needs to be some flexibility to respond to new and emerging technologies.

Current planned deliverables include:

� By January 2019, we will have delivered the UK connected and intelligent transport environment (UK CITE) which creates a real world lab for companies to test how connected and autonomous vehicles (CAV) can interact with communications infrastructure (so called V2X)

� By May 2019 we will have delivered the first phase of the connected corridor on the A2/M2, fulfilling the RIS1 commitment to deliver such a corridor in the South East. The corridor is being built in partnership with Transport for London, Kent Council and the Department for Transport as part of the wider European Intercor initiative

� By March 2020, we will have tested and evaluated a series of technology solutions for the provision of stopped vehicle detection. This follows our pilots on the M25 junctions 5-6 and junctions 23-27 and our commitment to provide this service across all all-lane-running smart motorway sections. Testing and evaluation of alternative suppliers will widen our market and encourage technology development

Innovation projects pipelineAs well as known projects that are developed beyond concept, projects that have been identified but not included in the plan will be held in a pipeline managed by the designated fund programme office.

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Funding process

The HERIAB members will be at a senior responsible owner level or above to provide strategic insight into innovation across Highways England. In prioritising innovation, a long term view will be taken beyond the current role and remit of Highways England. Therefore, external stakeholders will be included in the membership of the HERIAB. The HERIAB provides the forum to enable collaborative working and shared decision making.

The HERIAB will offer advice and guidance to support to steer innovation focus for the company, including Innovation Designated Fund projects, meeting quarterly to discuss progress on the portfolio of projects (or more often if required).

Projects will be funded by Innovation Designated Funds if they satisfy the following criteria:

� The proposed projects support a new idea or way of working (eg type of technology system), trial or process, and are therefore an innovation

� They support the trialling or piloting of innovative services on the strategic road network (eg communications network that supports delivery of in-vehicle services)

� They are not already funded by a regional programme

� They support one or more of the change themes identified in Connecting the Country: Planning for the Long Term

Designated funds proposals must follow the Highways England investment approval process.

The Highways England research and innovation advisory board (HERIAB) is being formed to join up and coordinate research and innovation activities which align with government challenges and priorities.

All Innovation Designated Fund projects will follow the appropriate investment decision approval process and an project summary form will be used for potential project ideas. Figure 1 shows the high level governance for Innovation Designated Funds.

Designated fund steering group

HERIAB designated fund

programme

Other DF programme groups

RegionsOther decision

groups (MP, IT OD...)

Regions

Fig 1: Hierarchy for decision making for Innovation Designated Fund projects.

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Performance metricsThe innovation fund acts as an enabler for Highways England to meet its key performance indicators and performance indicators within the wider RIS objectives.

Pilot projects should also follow the principles as outlined in the Guidance for Pilots and Trials.

Due to the nature of innovation projects, the initial installation may not deliver benefits as anticipated, with the result that the equipment will be decommissioned if no business case is identified. Costs of decommissioning should be included in the estimated costs of the pilot project. Maintenance costs should also be considered in the design of any pilot scheme.

ApplicationWe will support you throughout the funding process. Whether you are a Highways England project team, involved in delivering a scheme, already a partner of ours or not yet working

with us, our designated funds team are here to help. The process is outlined below:1. Submit project summary form to IDF

programme manager2. IDF programme manager review

and commentary3. Technical lead and senior PM

review and comment4. Designated funds investment

decision committee (DF IDC) decision

Your proposal will go through stages from project concept to delivery and ongoing monitoring and evaluation. There are defined output requirements for each stage of the IDF appraisal process:

The stages are:1. Discovery (feasibility)2. Development (feasibility)3. Demonstration (where applicable)4. Delivery (of off/on road trial)5. Project close out6. Monitoring and evaluation

All projects require approval by the designated funds investment decision committee (IDC) at each stage of the process. They will make decisions based on whether your proposal aligns with the IDF criteria, fits strategically with delivery of the RIS and is value for money as well as providing the wider benefits of the scheme.

For the DF IDC to review your proposal, the project team will produce a project summary form (PSF) which has been endorsed by the technical fund lead and programme fund lead.

Our regional teams submit their annual programmes to the designated funds IDC for approval at the end of the preceding financial year.

The DF IDC will approve, on an ad hoc basis, any new schemes that develop or are proposed outside the annual allocation for that year.

Discovery and developmentWe review the proposal based on the criteria within this fund plan, alignment to Connecting the Country: Planning for the Long Term, and the steer provided by the HERIAB.

The proposal is captured on the project summary form (PSF) and sent to the designated funds in-box for review. Technical endorsement is then sought from the Innovation technical lead and senior programme manager. The proposal will be presented at designated funds IDC and a decision provided regarding the initial phase of funding.

DemonstrationThe project team will be invited to attend designated funds IDC again following completion of the discovery/development phase to request the next release of funding and demonstrate the progress made so far. Not all projects will require a demonstration phase.

We review the next phase of the proposal based on the criteria within this fund plan and alignment to Connecting the Country: Planning for the Long Term and the steer provided by the HERIAB. We will assess the progress made under the first phase of the project and identify if the project remains on track to meet the specified outputs and deliverables.

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The progress to date is captured on the project summary form (PSF) along with a detailed description of the deliverables and benefits for the next stage of the project. This is then sent to the designated funds in-box for review. Technical endorsement is then sought from the innovation technical lead and senior programme manager. If the idea is accepted, the proposal will be presented at designated funds IDC and a decision provided regarding the second phase of funding.

The project team will be invited to attend the designated funds IDC again following completion of the demonstration phase to request the next release of funding and demonstrate the progress made so far.

DeliveryThe project team will be invited to attend designated funds IDC again following completion of the previous phases to request the final release of funding and demonstrate the progress made so far.

We review the final phase of the proposal based on the criteria within this fund plan and alignment to Connecting the Country: Planning for the Long Term and the steer provided by the HERIAB. We will assess the progress made under the first phases of the project and identify if the project remains on track to meet the specified outputs and deliverables.

The progress to date is captured on the PSF along with a detailed description of the deliverables and benefits for the final stage of the project. This is then sent to the designated funds in-box for review. Technical endorsement is then sought from the innovation technical lead and senior programme manager. The proposal will be presented at designated funds IDC and a decision provided regarding the second phase of funding.

The project team will be invited to attend IDC again following completion of the demonstration phase to request the next release of funding and demonstrate the progress made so far.

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Project close out The project team will need to produce a project close out report as part of the conclusion of the trial. This should explain how the trial was conducted, lessons learned and an evaluation of the project success, considering the outputs and deliverables of the project and whether they have been achieved.

The benefits of the project should be captured and measured throughout the project lifecycle in order for an evaluation to be conducted. The HERIAB will then take a view on whether to recommend the project for roll out as business as usual across the company and our supply chain where appropriate. If the project is accepted as successful and deemed appropriate to roll out across the company, the HERIAB will provide direction on how to do this depending on the specific project.

Monitoring and evaluationInnovation Designated Fund projects must contribute to one or more of the following:

� Encouraging economic growth through improving average delay (time lost per vehicle mile) as described in the performance specification

� Support the business, and freight and logistics sectors as well as helping the government support small and medium size enterprises

� Support achieving greater efficiency in the way that the network is maintained and improved.

As innovation funding deals primarily with pilot projects, appraisal is not an appropriate tool as the impacts of the interventions are often not fully defined. The Innovation Designated Fund projects will take a business case approach to justifying spend (resource and capital) and evaluate whether the trial has been successful in conjunction with subject matter experts. The business case template used follows the principles of the investment decision control business case framework.

Evaluation is critically important to inform the future appraisal of schemes based on work taken forward under the pilot projects funded by the innovation fund.

The Innovation Designated Funds programme will be monitored and reported on a monthly basis. The performance of the programme will be summarised in terms of annual spend, five year programmed spend, IDC compliance, risks, key deliverables and pipeline projects.

To discuss an idea, find out more about the appraisal process or to submit a proposal please email designatedfundscheme@highwaysengland.co.uk in the first instance.

The relevant fund manager will then get in touch with you.

If you are already working with Highways England, contact your relevant programme or project manager, who has access to more detailed information about the Innovation Designated Funds scheme and appraisal process.

Visit the Highways England website atwww.highwaysengland.co.uk for supporting information.

Get in touch

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