Issue - meetings

Exempt appendices are contained within the Exempt Appendices Section of this agenda below.

Contract Award / Approval of Joint Venture

(i)       subject to compliance with subsidy control legislation, an ongoing analysis of which is currently being undertaken, to approve the appointment of BP International Limited (“bp”) as Joint Venture partner to deliver the Aberdeen Hydrogen Hub Strategic Partnership following a public procurement procedure, and subject to the budget approval in (iv);

(ii)       to authorise the Chief Officer - Governance following consultation with the Head of Commercial and Procurement to conclude and sign the Legal Agreements (as detailed in Appendix D) with bp, and to negotiate and agree any changes to them they consider to be necessary or desirable, subject to the budget approval in (iv);

(iii)      to authorise the Head of Commercial and Procurement following consultation with the Chief Officer - Governance to undertake or instruct any other actions, and the entering into of any other contracts and/or documentation, that they consider to be necessary or desirable in connection with the setting up and operation of the Joint Venture;

Finance

(iv)      to approve the Business Case for the Strategic Partnership included at Appendix B, and notes the Council’s share of the estimated capital investment in the Joint Venture relating to Phase 1 of the AHH, and the seed funding investment to support the delivery of community benefits, supply chain development and training and skills and refers this to the Council’s budget process;

(v)      to authorise the Head of Commercial and Procurement to spend up to £160k in 2021/22 in support of Recommendation (iii), to be funded from the underspend on the 2021/22 General Fund Capital Programme;

Governance

(vi)      to note the Joint Venture structure in Appendix D and approve the proposed name of the separate legal entity to be incorporated and registered with Companies House;

(vii)     to note the summary of obligations of the Council in relation to the Joint Venture in Appendix D;

(viii)    to note the summary of the key provisions of the Joint Venture Legal Agreements in Appendix D in relation to Council Shareholder approvals and delegates authority to the Director of Resources to discharge the Shareholder Reserved Matters stated in Appendix D on behalf of the Council;

(ix)      to note that the Shareholder Reserved Matters not included in the Recommendation (viii) above and that would require to be referred back to Committee for a decision include:-

(a)    changing the share capital and distributions;

(b)    changes outside normal course of JVCo business;

(c)    funding approval for Projects not already included in the Council budget;

(d)    winding up the JVco;

(x)      to note the key provisions of the Joint Venture Legal Agreements in Appendix D in relation to Council Director approvals and approves the appointment of the Director of Resources, and the Director of Commissioning as Directors of the JVCo to undertake the Director functions stated in Appendix D;

(xi)      to note that the Council’s investment in JVCo expected to commence in 2021/22 will be incorporated into the Council’s Group Accounts and subject to the statutory Annual  ...  view the full decision text for item 10

With reference to article 4 of the minute of meeting of the Urgent Business Committee of 25 October 2021, the Committee had before it a report by the Director of Commissioning which (1) sought a range of approvals with the objective of Aberdeen City Council entering into a Joint Venture with BP International Limited (“bp”) to deliver the Aberdeen Hydrogen Hub (“AHH”) Strategic Partnership (the “Project”); and (2) provided details on the proposed Joint Venture structure, governance, obligations, associated risks and the return on investment expected to the Council through participation in the Joint Venture.

The report recommended:-

that the Committee –

Contract Award / Approval of Joint Venture

(a)      subject to compliance with subsidy control legislation, an ongoing analysis of which is currently being undertaken, to approve the appointment of BP International Limited (“bp”) as Joint Venture partner to deliver the Aberdeen Hydrogen Hub Strategic Partnership following a public procurement procedure, and subject to the budget approval in (d);

(b)      authorise the Head of Commercial and Procurement to conclude and sign the Legal Agreements (as detailed in Appendix D) with bp, and to negotiate and agree any changes to them he considers to be necessary or desirable, subject to the budget approval in (d);

(c)      authorise the Head of Commercial and Procurement to undertake or instruct any other actions, and the entering into of any other contracts and/or documentation, that he considers to be necessary or desirable in connection with the setting up and operation of the Joint Venture;

Finance

(d)      to approve the Business Case for the Strategic Partnership included at Appendix B, and notes the Council’s share of the estimated capital investment in the Joint Venture relating to Phase 1 of the AHH, and the seed funding investment to support the delivery of community benefits, supply chain development and training and skills and refers this to the Council’s budget process;

(e)      to authorise the Head of Commercial and Procurement to spend up to £160k in 2021/22 in support of Recommendation (c), to be funded from the underspend on the 2021/22 General Fund Capital Programme;

Governance

(f)       to note the Joint Venture structure in Appendix D and approve the proposed name of the separate legal entity to be incorporated and registered with Companies House;

(g)      to note the summary of obligations of the Council in relation to the Joint Venture in Appendix D;

(h)      to note the summary of the key provisions of the Joint Venture Legal Agreements in Appendix D in relation to Council Shareholder approvals and delegates authority to the Director of Resources to discharge the Shareholder Reserved Matters stated in Appendix D on behalf of the Council;

(i)       to note that the Shareholder Reserved Matters not included in the Recommendation (h) above, that would require to be referred back to Committee for a decision include:-

(1)    changing the share capital and distributions;

(2)    changes outside normal course of JVCo business;

(3)    funding approval for Projects not already included in the Council  ...  view the full minutes text for item 10