8 COMMERCIAL PRINCIPLES FOR THE NORTH WALES GROWTH DEAL PDF 398 KB
Report by Hedd
Vaughan-Evans, Operations Manager.
Decision:
1. To agree the Commercial Principles as set out
in section 5 of the report.
2. To note that the rationale for adopting a specific commercial position will be clearly set out alongside project business cases for the Board to consider.
Minutes:
The report was
submitted by Hedd Vaughan-Evans (Operations Manager).
RESOLVED
(1) To agree the Commercial Principles as set
out in section 5 of the report.
(2) To note that the rationale for adopting a
specific commercial position will be clearly set out alongside project business
cases for the Board to consider.
REASONS FOR THE DECISION
To provide a clear
negotiating platform for the Portfolio Management Office.
DISCUSSION
The report was
submitted, which presented a series of Commercial Principles which, if adopted,
would be used by the Portfolio Management Office to negotiate commercial opportunities
involving the Growth Deal Projects.
Details were
provided about the background and relevant considerations and the consultations
held.
During the
discussion, the following matters were raised:-
·
In response to a question, it was explained that the
£100,000 for external legal support referred to in item 5 above reflected the
fact that there would be complex and detailed contractual work at times in
relation to the general funding agreements, and that the external legal support
referred to in paragraph 6.1 of the report was one element of this. It was
further explained that, in approving this report, the NWEAB would not commit to
direct expenditure. Nevertheless, there were financial implications to this,
but likely to be positive for the Board in terms of the abilities to take
advantage of commercial projects in order to have some sort of return. As the
Host Authority's Statutory Finance Officer had noted in his observations on the
report, this was not yet clear, and further work needed to be done in order to
identify the way forward in that regard.
·
It was noted that it was difficult to comprehend all
of this properly until genuine examples would be seen, but that the principles
seemed fair.
·
It was suggested that Commercial Principle 1 could be
difficult to define in terms of distinguishing between commercial returns as a
result of this investment and commercial returns as a result of something that
the body would do in any case. However,
it was accepted that the details were not currently available.