Decision details

That Cabinet approves the selection of the preferred bidder following the completion of the DBOM contractor procurement process, approves the allocation of capital budget of £34,343,963, approves the use of up to £10m of SCIL, and delegates authority to the Corporate Director Neighbourhoods and Regeneration, in consultation with the Lead Cabinet Member for Climate Action and Community Power, to finalise award of contract and approve agreements with off-takers for bulk and retail heat supplied. Cabinet is also asked to delegate authority to the Corporate Director Finance and Resources to agree the financial model.

Cabinet RESOLVED:

(1)       To approve the selection of Vital Energi Utilities Limited as the South Kilburn District Heat Network (SKDHN) Main Contractor preferred bidder for the contract value of £37,768,947 following the completion of the Design, Build, Operate and Maintain (DBOM) contractor procurement process set out in the report.

(2)       To approve an increase in the total capital budget for the SKDHN of £36,000,000. The funding for the budget is set out in paragraph 5.3 of the report and includes £12,000,000 of external borrowing.

(3)       To note that there will be a preferred bidder stage as set out in paragraph 3.2.31 of the report following satisfactory completion of the standstill period.

(4)       To delegate authority to the Corporate Director Neighbourhoods and Regeneration in consultation with the Lead Member for Climate Action and Community Power to finalise the contract and toaward the contract to the SKDHN Main Contractor preferred bidder as required by Contract Standing Order 88 following satisfactory completion of the preferred bidder stage.

(5)       To delegate authority to the Corporate Director Neighbourhoods and Regeneration, in consultation with the Lead Member for Climate Action and Community Power, forapproval of agreements with off-takers for bulk (building-level) and retail (consumer-level) heat supplied by the SKDHN in perpetuity.

(6)       To delegate authority to the Corporate Director Neighbourhoods and Regeneration, in consultation with the Lead Member for Climate Action and Community Power, to change the allocation of Strategic Community Infrastructure Levy and Carbon Offset Fund according to available balances.

Eligible for call-in: Yes

Deadline for submission of call-in: 6pm on Monday 26 January 2026