Decision details

·  Approve the procurement of a delivery partner for the South Bank Heat Network project

·  Approve the implementation of a new project structure in the form of a joint venture for the South Bank Heat Network

Further to Minute No. 108, 13 March 2024, the Director of Communities, Housing and Environment submitted a report which provided an update on the development of the District Heating programme. The report also provided a specific update on the Wellington Street extension to the existing network and on the progress and strategy in relation to the South Bank scheme. The report recommended several actions, including approval for the creation of a joint venture company and the procurement of a delivery partner who would provide capital funding to enable the delivery of the South Bank network and who would develop this network and a wider city centre zone.

In introducing the report, the Executive Member provided an overview of the range of benefits realised and progress achieved in relation to the scheme to date. The proposals detailed within the report regarding next steps were highlighted for the Board’s consideration.

The Board welcomed the report. A Member’s suggestion to further celebrate the success of the District Heating network and the benefits arising from it was acknowledged.

Responding to an enquiry, the Board was provided with information regarding the benefits which were being experienced by residents connected to the network, specifically in relation to reduced energy bills. Members also received information on how the continued development of the network was enabling a reduced reliance upon gas boilers for those on the network. 

Following consideration of Appendix 5 to the submitted report designated as being exempt from publication under the provisions of Access to Information Procedure Rule 10.4(3), which was considered in private at the conclusion of the public part of the meeting, it was

RESOLVED –

(a)  That the contents of the submitted report, including the update provided on the development of the district heating network, be noted;

(b)  That the contents of exempt Appendix 5 to the submitted report, be noted, and that the authority to spend £2,982,286 from the Capital Programme for the design and build of the Wellington Street extension, funded by £1m of Green Heat Network Fund (GHNF) grant and £1.982m of borrowing, be approved;

(c)  That authority to procure a development partner to commercialise a city-centre heat zone (as described at paragraph 41 of the submitted report as the “Zone”), be approved. This will include the South Bank GHNF scheme and subsequently to develop the Zone subject to meeting a range of specified mandatory requirements as assessed by the Council at an approval gateway prior to financial close. That it also be noted that the decision to award will be the subject of a further report to Executive Board;

(d)  That it be noted and affirmed that decisions on the more detailed matters on the approach to the procurements referred to within the submitted report shall be taken by the Director of Communities, Housing and Environment in accordance with the Officer Delegation Scheme;

(e)  That subject to the development partner successfully meeting the requirements at the approval gateway, approval be given to the creation of a joint venture (JV) company involving the Council and the development partner; approval be given to the Council entering into any other ancillary agreements or taking other actions to facilitate delivery of the Zone, and that it be affirmed that decisions on detailed matters in relation to the creation and the establishment of the JV and delivery of the Zone shall be taken by the Director of Communities, Housing and Environment in accordance with the Officer Delegation Scheme;

(f)  That the decision on any land purchase or use of land in the Council’s ownership for the development of an energy centre to support the South Bank network be delegated to the Director of City Development, subject to ‘Value for Money’ assessment and consultation with the Executive Member for Resources.