Issue - meetings

This report seeks approval to invite tenders in respect of a contract to design, build, operate and maintain a district heat network in South Kilburn, which will provide low carbon heat to the South Kilburn regeneration programme.

Cabinet RESOLVED to:

(1)     Approve inviting tenders to Design, Build, Operate and Maintain the South Kilburn Heat Network on the basis of the pr -tender considerations set out in paragraph 3.11 of the report.

(2)    Approve officers evaluating the tenders referred to in (1) above on the basis of the evaluation criteria set out in paragraph 3.11 of the report.

(3)     Note the award of a grant of £4.7m from the Green Heat Network Fund is to be applied towards the costs of constructing the district heat network and £0.45m towards the council’s costs to procure the network.

(4)    Note that the project utilises S106 funds specifically allocated as set out in paragraph 5.4 of the report.

(5)    Approve the allocation of an estimated £5.3m from prudential borrowing to fund the remainder of the scheme.

Councillor Mili Patel (Deputy Leader & Cabinet Member for Finance, Resources & Reform) presented a report seeking approval to invite tenders in respect of a contract to design, build, operate and maintain a District Heat Network in South Kilburn.

In highlighting the benefits of the proposal, Cabinet was advised that the heat network aimed to initially provide low carbon heat but ultimately aimed to provide zero carbon heat to developments in South Kilburn which formed part of the South Kilburn Regeneration Programme.  Members noted that use of a District Heat Network was in line with GLA policy and Brent’s Local Plan and designed to provide local residents with access to affordable low carbon heat managed through the Council.  This would include the Council maintaining control in terms of setting the heat tariff for the network, procurement of fuel though a favourably priced public sector buying process and also in terms of billing, with users also maintaining full control over their individual systems in terms of time and temperature control.

In noting the estimated value of the capital expenditure in relation to the initial planned lifespan of the network, as detailed in section 5 of the report, members were advised this would be supported through a programme of s106 contributions and prudential borrowing alongside grant funding of £4.7m secured through the Green Heat Network Fund designed to support construction costs for the network as well as an additional £0.45m to support procurement costs.

In welcoming the progress made, Cabinet was keen to recognise the efforts of all those involved and commitment (working collectively with the GLA in terms of delivery) which it was felt the project represented in meeting the Council’s aspiration to achieve net zero by 2030 as well as in addressing the climate emergency and securing the long-term sustainability of the South Kilburn regeneration programme.

Having thanked all those involved, Cabinet RESOLVED:

(1)    To approve inviting tenders to design, build, operate and maintain the South Kilburn Heat Network on the basis of the pre-tender considerations set out in paragraph 3.11 of the report.

(2)    To approve officers evaluating the tenders referred to in (1) above on the basis of the evaluation criteria set out in paragraph 3.11 of the report.

(3)    To note the award of a grant of £4.7m from the Green Heat Network Fund was to be applied towards the costs of constructing the district heat network and £0.45m towards the council’s costs to procure the network.

(4)    To note that the project utilised s106 funds specifically allocated as set out in paragraph 5.4 of the report.

(5)    To approve the allocation of an estimated £5.3m from prudential borrowing to fund the remainder of the scheme.