A report from the Director of Regeneration and Environment is attached. This seeks approval to the Council’s main investment decision in Energetik. (Report No.180, agenda part two also refers) (Key decision – reference numbers 4266 and 4035)
(8.30 – 8.35 pm)
Councillor Achilleas Georgiou (Deputy Leader) left the meeting for the following item, Minute No.2 above refers.
Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) introduced the report of the Executive Director of Regeneration and Environment (No.175).
1. That Report No.180 also referred as detailed in Minute No.19 below.
2. That the reports were scheduled for consideration at the full Council meeting on 25 January 2017.
3. Councillor Sitkin read out direct quotes from industry experts who were in support of the development of energetik! Members were also advised of the level of national interest in the development of such heat strategies. In conclusion Councillor Sitkin stated that the proposals were in line with national policy and that the risk to the council had been minimised in the development of the project. The Council had taken a cautious approach and extensive due diligence undertaken including the involvement of external independent experts. The proposals had been the subject of a series of previous reports considered by Members.
Alternative Options Considered: NOTED, the alternative options that had been considered as set out in full in section 5 of the report. Report No.180 also referred as detailed in Minute No.19 below.
DECISION: The Cabinet agreed to
1. Approve the Business Plan, prepared for and approved by the Holding Company Board of LVHN Ltd on 19 July 2016, with an update report to account for the revised two phase funding strategy scheduled to be approved on 10 January 2017.
2. Delegate to the Executive Director of Finance, Resources and Customer Services to agree an On-Lending Agreement between the Council and energetik! for the outstanding balance from the £15 million Tranche 1 funding, noting that £12 million had already been successfully secured under a match funding arrangement with the European Investment Bank (EIB) (£6 million) and the London Energy Efficiency Fund (LEEF) (£6 million).
3. Delegate to the Council’s Executive Director of Finance, Resources and Customer Services to approve and vary the schedule of loan repayments with energetik!; to approve the entering into of further loan agreements between the Council and energetik! to make available the funds which were the subject of this report; to operate the lending facilities; and to agree milestones required to be met before the release of funds. All borrowing would be in accordance with the Council’s Treasury Management Strategy to mitigate the risk of a negative impact on the Council’s budget and Medium Term Financial Plan.
4. Authorise Parent Company Guarantees to energetik! to cover its financial obligations in relation to the Heat Sale Agreement, Agreement for Lease and the Lease with the North London Waste Authority (NLWA) as per section 7.2.16 of the report.
5. Delegate to the Council’s Executive Director of Regeneration and Environment authority to settle final drafting matters for the Heat Supply Agreement, Lease and Agreement for Lease in conformity with the Business Plan.
6. Approve energetik! to enter into contracts to sell the locally produced, private ... view the full minutes text for item 8