30th April, 2013

The city of Leeds will go to market next month with a Green Deal retrofit programme with the potential to be worth up to £5 billion over eight years.

A procurement race will kick off in May for one or more partners for the three-year contract, with a potential five-year extension beyond that.

Work included will cover all aspects of the Green Deal – the government’s flagship retrofit programme that aims to pay for energy efficiency improvements through future savings on bills.

The contract notice is likely to be based on a £100m minimum model over the initial three years, but a competitive dialogue with interested companies will seek to strike a deal to increase that number towards the £5bn maximum.

The agreement will initially cover only the Leeds city region, where the council has identified up to 900,000 homes in need of energy improvements.

If work was carried out on all of these, the value of the investment could be between £3.5bn and £5bn.
Around 450,000 of those homes have been designated “easily accessible”, meaning they are ripe for improvement.

But Construction News understands the project could be expanded further to include other local authorities and registered providers in the North Yorkshire area.

A group of council leaders in and around Leeds unanimously approved the plan at a meeting yesterday afternoon.
Leeds city region head of infrastructure and investment Colin Blackburn told Construction News: “This is about the public sector, private sector and local authorities working together to deliver the Green Deal, create jobs and tackle fuel poverty.

“This is a great opportunity for investment – and for the jobs that go with that.”

This article first appear in Construction News

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