Issue - meetings

A report from the Director of Environment is attached. This seeks approval to establish a special purpose vehicle to deliver the Lee Valley Heat Network. (Key decision – reference number 3583)

(Report No.123)

(8.45 – 8.50 pm)

Councillor Chris Bond (Cabinet Member for Environment) introduced the report of the Director of Environment (No.123) seeking in principle approval to establish a Special Purpose Vehicle to deliver the Lee Valley Heat Network (LVHN) by March 2013.

NOTED

1.         that approval was being sought for expenditure of up to £20,000 (shared with the London Borough of Haringey) as set out in the report;

2.         that the Lee Valley Heat Network (LVHN) would initially use hot water and steam from the Energy from Waste facility at the Edmonton EcoPark;

3.         the reasons for the recommendations as set out in section 5 of the report;

4.         the impact on Council priorities as set out in section 8 of the report.

Alternative Options Considered: The full range of delivery options for the Special Purpose Vehicle will be considered in a subsequent Cabinet paper, for which specialist legal advice will be sought.

DECISION: The Cabinet agreed

1.         in principle, to approve the establishment of a Special Purpose Vehicle to deliver the Lee Valley Heat Network (LVHN) by March 2013, subject to further Cabinet approval of:

·        A robust business case to establish the viability of delivering LVHN;

·        Appropriate Special Purpose Vehicle (SPV) structure and governance arrangements;

·        Enfield investment in the SPV to build and operate the LVHN.

2.         to approve expenditure of up to £20,000 (shared with the London Borough of Haringey) to cover initial legal advice to identify the appropriate SPV structure and governance arrangements.

3.         to immediately and jointly establish an off the shelf “paper” company with the London Borough of Haringey, with authority for this decision delegated to the:

·        Cabinet Member for Environment

·        Cabinet Member for Business and Regeneration; and

·        Director – Environment

This will provide further market testing, ahead of Cabinet approval of the full LVHN business case.

Reasons for recommendations: The SPV is required to be able to deliver the LVHN project, which is forecast to deliver significant economic, environmental and social benefits greater than would otherwise be achieved by individual decentralised energy schemes. These benefits include:

• Inward investment and new jobs
• Affordable low carbon heat for businesses, industries, the public sector and local residents
• Tackle fuel poverty
• Reduce London’s carbon footprint

(Key decision – reference number 3583)