Decision details

In accordance with legislation the company can only seek loans from the Council. A loan of £2 million is included as part of the Council’s Capital programme towards the purchase of vehicles. An additional £1.8 million is required to allow the company to provide match funding and secure a Department for Transport (DFT) Grant of £5.7 million towards 36 electric buses and associated infrastructure. This is part of a number of measures to improve air quality. Having funding all funding in place is a requirement in order to accept the  terms and conditions of DFT grant.

RESOLVED: that

1.            the granting of a loan to Cardiff Bus from the Council for £2.0 million for the purchase of electric vehicles subject to conclusion of a legal agreement, to include appropriate security arrangements, between the Council and Cardiff Bus in respect of the terms of the loan

2.            In line with the Council’s Budgetary Framework, further Council approval be sought when required and if appropriate, in terms of spend commitments and in line with DFT grant conditions, for a further loan to Cardiff Bus for £1.8 million.

3.         the Corporate Director Resources in consultation with the Director of Governance & Legal Services and the Cabinet Member for Finance, Modernisation and Performance be delegated the authority to  prepare and conclude of the legal agreements between the Council and Cardiff Bus in respect of approved loans.