Issue - items at meetings - KD 4859 - Update on the Council’s Investment Decision and Approach to Tranche 2 Funding Options for the energetik Business Plan

Issue - meetings

KD 4859 - Update on the Council’s Investment Decision and Approach to Tranche 2 Funding Options for the energetik Business Plan

Meeting: 12/03/2019 - Cabinet (Item 6)

6 Update on the Council’s Approach to Funding the Remainder of energetik's Business Plan pdf icon PDF 183 KB

A report from the Director – Commercial is attached (Report No.192, agenda part two also refers). (Key decision – reference number 4859)

(Report No.187)

(7.40 – 7.50 pm)

Minutes:

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Director – Commercial (No.187) seeking agreement on the shareholder strategy and approval of the preferred funding route for the Company to take forward.

 

NOTED

 

1.            That Report No.192 also referred, as detailed in Minute No.15 below.

 

2.            That this report set out the different funding options that had been explored and the reasons the alternative options had been discounted. It sought agreement on the shareholder strategy and approval of the preferred funding route for the Company to take forward. A further report would be presented to a future Cabinet meeting by Autumn 2019, to secure the second tranche of investment for Energetik’s business plan and, to agree the final investment decision.

 

Alternative Options Considered: NOTED, that overall, doing nothing was not possible as energetic had current commitments to its existing customers and clients at its active and in development heat networks. A delayed decision to invest would mean significant cost increases to the Company to deliver its infrastructure due to the expiry of a fixed price agreement with its design and build contractor. In turn this reduced the potential retained earnings in the business and increased the amount of loans required.

 

DECISION: The Cabinet agreed to

 

1.            Note the contents of the report.

 

2.            Note that a further report would be submitted to Cabinet by Autumn 2019 to agree the actual investment decision once the outcomes of the preferred funding option had been approved and the due diligence on the updated Company Business Plan was complete.

 

Reason: As detailed in Report No.192, Minute No.15 below referred.

(Key decision – reference number 4859)