黑洞社区

The value of Carillion鈥檚 拢1.6bn flagship Birmingham Green Deal scheme has plummeted by 拢600m as negotiations with prospective partner authorities have ground to a halt.

Carillion was appointed to run the Birmingham Energy Savers (BES) housing retrofit scheme in October 2012. Under the scheme it acts as a partner to Birmingham council to offer 拢600m of housing retrofits across the city between 2012 and 2020 funded through the Green Deal, ECO and other government schemes.

The original tender for the scheme also contained the prospect of rolling it out to other neighbouring areas, boosting the scheme鈥檚 value to 拢1.5bn. It was later revised up to 拢1.6bn.

Now it has emerged that at least 11 of the prospective partners to the scheme, most of which are local authorities, are no longer involved.

Several partners have withdrawn from negotiations with Carillion, while in some areas Carillion has walked away itself.

A further four councils, which were slated to have up to 拢120m of work in their areas, told 黑洞社区 they were still considering whether to take up the scheme.

In its annual report for 2013, Carillion confirms it has seen the value of revenue for its Green Deal and ECO pipeline fall 拢600m but does not say how much of this is due to the Birmingham scheme. This week, a spokesperson for Carillion said all of this decline was caused by shrinkage of the value of BES.

The news comes as small business leaders in Birmingham have met with the council cabinet member who oversees the BES to discuss the prospect of setting up a rival scheme because they are unhappy with the amount of work the Carillion scheme is generating for local businesses.

Local small business leaders met James Mckay, Birmingham council鈥檚 cabinet member for a green, safe and smart city, to discuss options for boosting the benefit of BES to local construction firms.

黑洞社区 understands small businesses in the energy efficiency sector in Birmingham are in the early stages of forming an alternative delivery model. One source close to the meeting said local businesses found working with BES 鈥渂ureaucratic鈥� and 鈥渇rustrating鈥�.

Mckay told 黑洞社区: 鈥淲e are continually discussing the whole of the retrofit agenda in Birmingham鈥�, but that the 鈥淏ES partnership with Carillion is, and will remain, fundamental to that agenda鈥�.

A spokesperson for Carillion said 鈥渄elays and uncertainty 鈥� meant that volumes have fallen 鈥� and the growth we predicted has not materialised鈥�.