HK Electric Smart Power Fund. Application Guideline

Transcription

1 HK Electric Smart Power Fund Application Guideline Corporate Development Division 4/F Hongkong Electric Centre, 44 Kennedy Road, Hong Kong Hotline : Fax : smartpowerfund@hkelectric.com January 2015 update

2 1 Introduction Hong Kong s general public are increasingly aware of the importance of a low-carbon economy - one that is energy efficient, less polluting and with minimal Greenhouse Gases (GHG) emission. Electricity consumed by buildings contributes to about 60% of Hong Kong s GHG emissions. Substantial GHG emissions reduction can be achieved in buildings by improving the energy efficiency performance of building services installations. The Hongkong Electric Co., Ltd. (HK Electric) is committed to promoting a low carbon economy by reducing our own carbon footprint, while partnering with the community to reduce carbon emissions. The setting up of the HK Electric Smart Power Fund (the Fund) under the 2013 Interim Review of Scheme of Control Agreement (SCA) with the HKSAR Government is our key community involvement initiative to promote energy efficiency in building sector aiming at a low carbon community. To encourage and help Owners Corporations of residential buildings or composite buildings with substantial portions for residential use to improve the energy efficiency performance of their existing building services installations for communal use, the Fund provides subsidies, on a 50/50 matching basis, to assist implementing the corresponding energy efficiency projects. 1.1 Purpose of this Guide This Guide provides guidance on application for the Fund and sets out the basic requirements and responsibilities for recipient organizations. 1.2 Eligible Energy Efficiency Projects Improvement works to upgrade (excluding addition works) the energy efficiency performance of existing building services installations (viz. lighting, air-conditioning, electrical installations, lifts and escalators) for communal use in residential buildings or composite buildings with substantial portions for residential use are eligible for application. Only project items included in the application that contribute directly to improve the energy efficiency of relevant building services installations are eligible for subsidies. 1.3 Administration The Fund and its applications will be administered by HK Electric A Vetting Committee, comprising representatives from HK Electric and different sectors of the community, is established to assess and approve the applications Upon approval of the subsidies by a Vetting Committee, recipient organizations shall undertake to observe the conditions of using the approved budget and allocated funding by signing a Letter of Undertaking with HK Electric. 2 / 12

3 2 Guide to Application 2.1 Eligibility Organisations satisfying the following conditions are eligible to apply: - Owners Corporations (registered under the Building Management Ordinance (Cap. 344)), owners organisations (e.g. Owners Committee) or residents organisations (e.g. Mutual Aid Committee) of residential buildings or composite buildings with substantial portions for residential use, and - the corresponding buildings are located within HK Electric s service territory Property management companies or qualified service providers as specified in paragraph 2.6 below may apply on behalf of Owners Corporations under the latter s authorization Exclusions: 2.2 Subsidy Limit - Estates/buildings wholly owned by the Hong Kong Housing Authority or Hong Kong Housing Society - Government quarters Subsidy will be granted on a matching basis. 50% of the actual expenditure spent for the approved energy efficiency project items (as defined in paragraph 5.2) will be reimbursed subject to a maximum of HK$200,000 per each building per application. Under special conditions to be justified by the Applicant Organization, HK Electric and the Vetting Committee will consider, case by case, to accept funding application upto HK$300,000 per each building per application In view of the complicated built environment in Hong Kong, both the Vetting Committee and HK Electric have the right to determine the subsidy limit for individual applications on a case-by-case basis. 2.3 Allowed Duration for each Project All energy efficiency projects should commence within 12 months and be completed within 24 months after the approval of the application unless time extension approval has been obtained from HK Electric in accordance with paragraph Should time extension of project commencement and/or project completion date(s) be needed, Applicants shall submit written application with sufficient justification at least one month before the deadlines stated in paragraph HK Electric will assess and approve the applications for time extension if deemed justifiable. 3 / 12

4 2.4 Application Procedure The Smart Power Fund is now open for application until 31 December 2018 or the funding is fully used up, whichever is the earlier. Applications submitted before the following dates will be processed within three months from the respective dates:- 31 March 30 June 30 September 31 December Application processing schedule will be stated in the acknowledgement receipt issued by HK Electric to individual application Applications can be made by completing and returning the Smart Power Fund Application Form (downloadable from HK Electric website with the required supporting documents to HK Electric by post or By post: By Corporate Development Division 4/F Hongkong Electric Centre, 44 Kennedy Road, Hong Kong. (in both soft and hard copies) Please mark Application for HK Electric Smart Power Fund on the envelope. (with electronic attachment) 2.5 Vetting Procedure HK Electric has the right to request the Applicant to provide clarification or supplementary information wherever necessary HK Electric shall conduct pre-project on-site inspection for each application to verify that no energy efficiency project listed in the application has commenced and no contract for the project works has been awarded prior to the application HK Electric will prepare recommendation on each eligible application for the Vetting Committee s assessment and approval based on the result of the pre-project inspection and sufficiency of supporting information Each eligible application will be vetted and approved by the Vetting Committee on a regular basis (quarterly in normal situation) In line with item above, both the HK Electric and the Vetting Committee will also consider the budget, and where necessary, amend the budget details and set ceilings for individual expenditure items. 4 / 12

5 2.6 Application Criteria Subject to the project scope, the Applicant should engage a qualified service provider, who is either: (a) a Registered Professional Engineer in Building Services, Electrical, Mechanical or Environmental discipline registered under the Engineers Registration Ordinance (Cap. 409); or (b) a Corporate Member of The Hong Kong Institution of Engineers in Building Services, Electrical, Mechanical or Environmental discipline, who has no less than one year relevant post-qualification working experience (i.e. local working experience on engineering design, installation, commissioning, inspection, testing or maintenance of building services installations in buildings); or (c) a Registered Energy Assessor (REA) registered under the Buildings Energy Efficiency Ordinance (Cap. 610); in certifying the detailed scope of the project, including justifications on the cost effectiveness, monitoring of the procurement of capital items, goods and services, supervising the project, completing and certifying the project completion reports on the compliance of the respective Building Energy Efficiency Ordinance (Cap. 610) Whenever applicable, the building services installations covered under the project shall comply with the requirement of Buildings Energy Efficiency Ordinance and be equal or more energy-efficient than the relevant latest energy efficiency standards stipulated in the Buildings Energy Efficiency Ordinance. 2.7 Vetting Criteria The following broad criteria will be used in assessing the merits of individual applications: (a) (b) (c) (d) (e) the projects must contribute to energy saving; the projects must be non-profit making in nature; the proposed project s schedule of implementation must be well-planned, practicable, and reasonable; the proposed budget must be reasonable and realistic with full justification for every expenditure item; priority will be given to: - single tower residential blocks; or - cases referred by District Councils, non-government organizations or green groups; or - aged buildings; 5 / 12

6 (f) (g) (h) (i) (j) (k) due considerations will be given to repeated applications from individual building(s); the projects which have received loan under our Energy Efficiency Loan Scheme may also apply; lower priority will be given to applications for multi-blocks residential estate; premises with ancillary facilities including swimming pool, sport facilities, clubhouse providing various recreation and leisure services, or multi-storey car park for residents only shall not be eligible; the premises which have received subsidy under the Buildings Energy Efficiency Funding Scheme (Energy Efficiency Projects) of the Environment and Conservation Fund before shall not be eligible; and the projects in the application which start (i.e. contract awarded) before the approval of the Vetting Committee is given shall not be eligible. 2.8 Avoidance of Conflict of Interests To avoid conflict of interest, members of the Vetting Committee who are directly or indirectly related to an application shall be required to declare interest prior to the discussion in the Vetting Committee Meeting. This will apply to members who are owners or occupants of the building under the application, and/or part of the project team. 2.9 Result Announcement The Applicant will normally be notified of the decision of the Vetting Committee within six months, depending on the vetting schedules (quarterly in normal situation) and if any additional information is required Application Withdrawal The Applicant can write to HK Electric to withdraw an application at any time before the funding is disbursed. 3 Application Form 3.1 General All sections of the application form should be completed with supporting documents wherever required. Where the information sought is not applicable or not available, please fill in NA Information provided in the application form should be clear and concise. Additional pages may be attached to the form if necessary. All materials submitted for application will not be returned Acknowledgment will be sent to the Applicant Organization after receipt of an application 6 / 12

7 3.2 Sections in the Application Form Applicant Organization The Applicant must be an Owners Corporation registered under the Building Management Ordinance (Cap. 344), owners organisations (e.g. Owners Committee) or residents organisations (e.g. Mutual Aid Committee) of residential buildings or composite buildings with substantial portions for residential use, and are located within HK Electric s service territory. The Applicant should provide a copy of documentary proof of the setting up of the organization (e.g. registration under the Building Management Ordinance (Cap. 344)) Person-in-charge of the Project He or she can be: (a) the chairman of the Applicant Organization; (b) a representative of the property management company; or (c) a qualified service provider as specified in paragraph 2.6 above. The property management company or the qualified service provider who submits an application on behalf of an applicant and take up the role of person-in-charge, should seek agreement in writing from the Applicant and attach the relevant document with this application form Building Information The Applicant should provide the name, address, electricity account(s), and electricity consumption records of the building communal areas for the past 12 months Qualified Service Provider The Applicant should provide the name and the qualifications of the qualified service provider with documentary proof. In case the information of qualified service provider is not available when submitting the application, the Applicant is required to submit to HK Electric relevant details for approval before the commencement of the project Project Information (a) The Applicant should fill in the details of building services installations to be upgraded with estimated expenditures covering procurement, delivery and installation. Expenditure on the necessary associated works can also be covered in the project. However, the Applicant should not include the costs mentioned in paragraph 4.2 below. (b) Estimated expenditure should have breakdowns in unit cost, number of unit, and total expenditure of each item. It should be noted that only energy saving items would be funded. 7 / 12

8 (c) The Applicant should fill in the expected commencement and completion dates of the project. The commencement date should be within 12 months and the completion date should be within 24 months after the approval of the application, unless a prior approval for time extension on project commencement/project completion is obtained from HK Electric. (d) It should also be noted that estimated energy saving and simple payback period for the project should be provided in the application form Sources of Funding from Other Funds/Funding Schemes The Applicant should declare with documentary proof whether funding/loan from other funds/funding schemes/loan schemes for the installation(s) listed in the application form has been applied for or received Estimated Revenue Generated from the Project Estimated revenue gains from the project (e.g. sale of building services installations to be replaced) should normally be deducted from the amount of funding applied for. The Applicant should provide full explanation if this is not possible Total Amount of the Funding Applied 4 Budget Guidelines Total amount of funding applied ( the Budget ) equals the estimated expenditure deducted by the amount of funding from other funds/funding schemes and the estimated revenue, to be multiplied by the sharing ratio which is set at 50%. The maximum subsidy limit is HK$200,000 per each building per application. Under special conditions to be justified by the Applicant Organization, HK Electric and the Vetting Committee will consider, case by case, to accept funding application up to HK$300,000 per each building per application. 4.1 The Applicant should provide a detailed budget with breakdown for the project. Each expenditure item should be reasonable and realistic. All expenditure items must be incurred between the commencement and completion date of the project with the original copy of supporting receipts. 4.2 The following costs shall be absorbed by the Applicant and will not be entitled for subsidization: (a) (b) (c) the recurrent maintenance costs and the running costs of the building services installations; costs of balance-of-plant components that are not related to energy efficiency improvement (e.g. lift car decoration work); and costs for employment of additional supervisory/administrative staff for undertaking the project as the Applicant is expected to have the ability to supervise the proposed project. 8 / 12

9 5 Conditions for the Use and Allocation of the Funding 5.1 Contractual Requirements Once the application has been approved, the recipient organization shall sign a Letter of Undertaking with HK Electric and comply with all the terms and conditions of using the allocated funding. 5.2 Funding Disbursement The funding will normally be disbursed on reimbursement basis (i.e. the recipients to settle payment before seeking reimbursement from HK Electric Smart Power Fund). The disbursement and reimbursement of funds should depend on the cash flow requirement, actual payment made and the nature of the project. The recipient organization may submit a proposed plan for disbursement to HK Electric for consideration under special conditions. Disbursement may be released to the recipient organization subject to endorsement of the proposed payment plan and submission of supporting documents such as invoices The funding will be disbursed on a reimbursement basis upon the satisfactory completion of the post-installation site inspection by HK Electric, and the receipt of project completion report and complete statement of accounts with actual project cost substantiation submitted by the recipient organization to the satisfaction of HK Electric As the amount of the funding shall not exceed 50% of the actual payment made, should the actual payment made for the project be less than the approved Budget, the amount of the funding should be adjusted downwards accordingly. However, in the case where the actual payment exceeds the approved Budget, any upward adjustment of the funding will be subject to prior approval by HK Electric Any item not on the approved list of budget items will not be reimbursed All revenue received, irrespective of whether it has been declared in the proposal, must be defrayed against the actual expenditure before calculating the amount to be reimbursed as final payment. 5.3 Procurement of Capital Items, Goods and Services The recipient organization should exercise utmost prudence in procuring goods or services for the project and must adhere to the following procedures unless the Vetting Committee agrees otherwise: (a) For every procurement the aggregate value of which exceeds HK$5,000 but does not exceed HK$10,000, tender from at least two suppliers should be obtained; (b) For every procurement the aggregate value of which exceeds HK$10,000 but does not exceed HK$200,000, tender from at least three suppliers should be obtained; and 9 / 12

10 (c) For every procurement the aggregate value of which exceeds HK$200,000, tender from at least five suppliers should be obtained Under any circumstances, the recipient organization should ensure the fairness of the tender process The recipient organization should provide full justifications for the Vetting Committee s prior approval if the supplier, who has not submitted the lowest bid for the approved item of the project, is selected Prior approval from the Vetting Committee should be obtained whenever the recipient organization intends to procure the items from a company/organization/individual without following the procurement process in paragraph above The tender document should require the suppliers to list out the unit cost and number of unit of each item. For tender of which the price is unreasonable, both the HK Electric and the Vetting Committee has the right to approve funding close to the market price as assessed by the HK Electric The recipient organization shall submit all relevant financial records (including all successful and unsuccessful bids, quotations and tendering documents submitted for the funded project) with the project completion report to HK Electric within one month after the completion of the project work. Post-installation inspection will be carried out thereafter (as stated in paragraph 5.4 below). HK Electric reserves the right to substantiate those records upon the HKSAR Government s auditing request The recipient organization should also observe the Code of Practice on Procurement of Supplies, Goods & Services issued under the Building Management Ordinance (Cap. 344) for the guidance of owners corporations. 5.4 Post-installation Inspection and Project Completion Report Upon completion of the project, the recipient organization should submit all actual project cost substantiations and a complete statement of accounts together with the project completion report within one month. A joint site post-installation inspection between the Applicant and HK Electric will be carried out thereafter to verify the project completion The subsidy received must be shown in the complete statement of accounts, together with the original or certified copy, as appropriate, of invoices and receipts. HK Electric/Vetting Committee reserves the right to check all financial records relating to use of the subsidy Project completion report should be certified by the qualified service provider and signed off by the person-in-charge with recipient organization s stamp HK Electric may approach the recipient organization for additional information to be included in the report if that is considered necessary. 10 / 12

11 5.5 Termination of the Approved Application 6 Others An approved application may be disqualified under the following circumstances: (a) if the project does not commence within 12 months after approval of the grant and no HK Electric s prior approval with sufficient justification for the time extension is obtained; or (b) if the project is not completed within 24 months after the approval of the grant and no HK Electric s prior approval with sufficient justification for the time extension is obtained; or (c) if the recipient organization fails to comply with the funding conditions as set out in this Guide and/or the Letter of Undertaking signed with HK Electric and no reasonable explanation has been given Any major changes to the project must be approved by HK Electric. Such major changes include: (a) Revision to the approved Budget; (b) Change of the person-in-charge; (c) Deferral of the commencement and/or completion of the project; or (d) Deferral of the submission of the project completion report HK Electric may disqualify the approved application if the project is being carried out under any of the circumstances outlined in paragraph without prior approval. 6.1 HK Electric and the Vetting Committee may at any time, if considered appropriate, amend or add to the above conditions (including application eligibility, funding cap and vetting schedule, etc.), without prior notice to applicant organizations. 6.2 HK Electric and the Vetting Committee reserve the right to accept or reject an application based on the information provided by the Applicant. HK Electric and the Vetting Committee shall bear no responsibility, financial or otherwise, for expenditure or other liabilities arising from the energy efficiency projects and shall not be responsible for any loss, damage, injury or accident howsoever occasioned or sustained by any person arising directly or indirectly from or in connection with the participation of HK Electric Smart Power Fund program. The Applicant and the project team shall be wholly responsible for all project activities. 11 / 12

12 7 Enquiry Applicants may obtain information about the Smart Power Fund via the following channels: Enquiry Hotline Fax Website END - 12 / 12