Issue - meetings
South Kilburn District Heat Network - Tender Outcome and Financial Model Report
Meeting: 19/01/2026 - Cabinet (Item 14.)
14. South Kilburn District Heat Network - Tender Outcome & Financial Model Report 
PDF 687 KB
This report seeks approval to enter preferred bidder stage for the design, build, operate and maintain (DBOM) contract for the South Kilburn District Heat Network (“the SKDHN”) Main Contractor preferred bidder. The report summarises the procurement process undertaken along with the required financial modelling.
Additional documents:
- 14a. (exempt) Appendix 1 - Name of Contractors , View reasons restricted (14./2)
- 14b. Appendix 2 - Tender evaluation grid, item 14.
PDF 157 KB
- 14c. Appendix 3 - Equalities Impact Assessment, item 14.
PDF 453 KB
- 14d. Appendix 4 - Glossary, item 14.
PDF 184 KB
- Webcast for South Kilburn District Heat Network - Tender Outcome & Financial Model Report
Decision:
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.
Deadline for submission of call-in: 6pm on Monday 26 January 2026