Cllr Rowley arrived at the meeting.

The Chief Executive has submitted a report to consider the approval of a loan to the Low Carbon Hub (IPS) to support the construction of the hydroelectric renewable energy scheme at Sandford and to mitigate the clawback risk around the Intelligent Energy Europe grant arrangements.

Cllr Turner, Board Member for Finance, Asset Management and Public Health presented the report. He explained that the Council had been approached by the Low Carbon Hub for additional funding as the scheme is more expensive than planned. A £100,000 loan would be paid back at 1% interest by June 2019.

The Council has been awarded EU funding to provide a series of renewable energy projects before November 2016. Without the Sandford scheme the Council would not meet its obligations with the EU and would be required to repay approx. £193,000. To avoid this, the Sandford scheme and loan should go ahead.

Cllr Tanner endorsed the work of the Low Carbon Hub at promoting renewable energy projects. He gave credit to Oxford City Council for funding the scheme.

Cllr Price outlined the impressive track record the Low Carbon Hub had at raising finance for its projects and the importance of mitigating the risk of the EU grant clawback.

Cllr Hollingsworth praised the Low Carbon Hub for bringing investment into the local community which is good for the economy.

The Head of Law and Governance asked the Board to note the confidential appendix on assurances around state aid. The Board noted the appendix.

The City Executive Board resolved to:

1.    Agree a loan to the Low Carbon Hub IPS of up to £100k at an interest rate of 1% for 3 years specifically to support the construction of the hydroelectric scheme at Sandford. 

2.    Delegate the authority to enter into an appropriate Loan Agreement with the Low Carbon Hub (IPS) to the Section 151 Officer and Monitoring Officer in consultation with the Chief Executive Officer.