Biomass blunder sees schools burn money
STATE-of-the-art biomass boilers, fitted as the principal source of hot water and heating in the region's three new secondary schools, are not operational.
One of the schools, at Earlston, has been switched off for routine maintenance, but the other two – at Eyemouth and Duns – have developed faults and are awaiting repair.
It has also emerged that staff working with Amey Community Services, the firm charged to maintain the schools – built for 72million under a public private partnership (PPP) financing arrangement – have not been trained to operate the woodchip-fuelled boilers.
The situation has so concerned Scottish Borders Council that it has ordered Amey and the company which owns the schools, the Scottish Borders Education Partnership (SBEP), to rectify the faults as soon as possible.
Amey has also been given a deadline to submit its training proposals so its staff can operate the equipment.
In a briefing report to councillors, Andrew Drummond-Hunt, SBC's head of property and facilities management, states: "There are significant questions to be answered as to the configuration of the boilers and the ability of the heating systems of get the best out of the biomass elements, and this needs further investigation, particularly at Eyemouth and Duns."
He and senior council staff have also demanded that the main building contractor, Irish-based John Graham Ltd – which has a 25 per cent share in SBEP – completes "a thorough inspection and assessment of the installations to determine their capabilities and formulate proposals for reconfiguring the systems so they operate effectively and efficiently".
The company has until November 6 to comply.
Mr Drummond-Hunt's report comes after he, along with SBC's energy services manager Les Douglas, met representatives of the three operating companies.
"The biomass boilers for all three PPP high schools should be providing the base heat for hot water and heating, with gas boilers providing supplemental heat at times of peak demand," he explained.
Councillor Nicholas Watson said: "It is unacceptable that the gas boilers, which were designed as a back-up source of energy, are being deployed full-time.
"This needs to be sorted out urgently, otherwise the council will not get the economies of heating by woodchip and could end up having to honour its contract to buy the woodchips (from Forfar-based Angus Biofuels] even if they are not being burned."
Mr Watson, whose Leaderdale and Melrose ward includes Earlston, said SBC could also face carbon fines.
And he claimed the situation was ironic, given that the Eyemouth and Duns schools were seeking an "excellent" BREEAM (Building Research Establshment Environmental Assessment Method) rating because of their renewable energy features.
Meanwhile, Mr Watson used the open question session at last week's SBC meeting to request more information about the SBEP.
He noted that, according to Companies House, five directors, two secretaries and an auditor had resigned since 2006 and wondered what control the council had over the company.
He was told that SBC had, in January 2007, entered a contractual agreement – until 2038 – with SBEP to design, construct, finance and manage the three schools.
Councillor Jim Fullarton, executive member for technical services, said SBC owned the land and would take the schools back at the expiry of the agreement.
He said SBEP was a private limited company, specially set up for the three schools projects, and its shares were wholly-owned by its holding company – SBEP (Holdings Ltd) – also a private company limited by shares.
The latter comprised Bilfinger Berger Project Investments (75 per cent holding), a subsidiary of a company registered in Germany, and John Graham Ltd, which had a 25 per cent holding.
"SBEP is entitled to sell or transfer its shares subject to certain constraints," said Mr Fullarton.
"It needs the consent of the council before the shares held in it or by its holding company are sold to any person engaged, or with substantial interests in, activities considered by the council to be incompatible with the health, education, instruction or guidance of children.
"SBEP also has to notify the council if there is a change in the ownership of more than 15 per cent of the issued share capital."
Mr Fullarton acknowledged that while there had been five appointments to the company, there had been seven resignations, including the auditor who resigned in December last year, but has since been replaced.
"SBEP is contractually bound to provide the building and services specified in the agreement (with SBC], but if the council changes the agreement it may have to pay additional costs.
"If SBEP does not perform the services to the standards specified ... the council can make deductions from the payments due to SBEP."
These so-called unitary payments, linked to the retail price index, will be paid annually until 2038. In 2010/11 the amount will be just under 7million.
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Weather for Duns
Thursday 17 May 2012
Today
Light rain
Temperature: 5 C to 9 C
Wind Speed: 10 mph
Wind direction: South west
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Light rain
Temperature: 4 C to 8 C
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