Economic and social regeneration across a region
Revitalise the area
in all aspects:
economic, social and environmental
jobs created (2015 figures)
external investment generated
municipal workers hired
How can the day-to-day management of municipal services become an engine for economic, social and urban regeneration? ENGIE is answering this ambitious question through its partnership with North East Lincolnshire Council. On the agenda: shared goals and investments, and 12 years' support (2010-2022) to improve quality of life and work and enhance the attractiveness of the area.
The region of North East Lincolnshire, in the north east of England, has long been a bastion of the fishing industry. But since the decline of the industry’s heyday in the 1970s, the area has faced a number of challenges which have gradually eroded its prosperity. These include limited employment opportunities, an ageing population and low resident education levels. Faced with mounting economic and social difficulties and lack of investment, the region’s elected representatives took the bold decision to create a partnership which outsourced running some public services to a private company. In return, the contractor was required to make significant performance commitments and generate shared value.
An original method; an ambitious partnership
The strategic partnership established with ENGIE in 2010 is responds to an ambitious challenge: to outsource the management of public services – covering roads and transport, public safety, public housing and municipal buildings – that are key drivers of development for the region and its inhabitants. Councillors set outcome-based objectives in these areas. Their aim is not only to improve the quality of services delivered, but also to shape a genuine urban, economic and social programme that improves the lives of local communities. Payment of 30% of the overall contract value is subject to the fulfilment of these targets. ENGIE has undertaken to invest jointly with the district council to boost local employment and attract other investors.
the value of the contract signed
between ENGIE and North East Lincolnshire Council
Monthly monitored performance
The contract should ultimately generate 4,200 jobs and provide training for 400 young people. Carbon emissions will have to have been reduced by 20%, road deaths by 33% and 3,500 additional residential units, new or renovated, must be created. These are long-term objectives. But the partnership is managed and indicators are monitored on a monthly basis. There are more than 30 precise indicators across 8 different sectors (facilities management, property, road safety, etc.) Whenever performance for any of these indicators dips, action plans can rapidly be set up.
the job creation goal
over the lifetime of the contract
ENGIE’s service quality and support in this region are increasingly being acknowledged by the local authorities. The partnership has been awarded several prizes: the Local Government Chronicle Council Awards in 2011, the Local Government Chronicle Business Awards (2012), Premises and Facilities Management Awards in 2014 and Royal Town Planning Awards (2017).
Making savings for improved reinvestment
As the delegated manager of a large number of local services, ENGIE was also assigned the task of optimising a number of sectors of the municipal economy. The goal: to make millions of pounds’ worth of savings and claw back fresh budgetary operating margins. One of the measures that generated the most savings involved reducing the number of offices occupied by the local authority. Previously dispersed across more than 20 different buildings, the teams are now centralised in two “hubs”, resulting in savings of over £1m/year. Renewing the street lights also saved more than £500,000/year by replacing the old bulbs with LED equivalents.
“The council currently spends around £4 million per year on energy supplies. By introducing these new proposals, we can make a saving of £500,000 in 2016 to 2017 and reduce the council’s overall carbon footprint.”
Ray Oxby, cabinet member for North East Lincolnshire Council
If it is to return to growth and development, the region also needs investment. That’s one of the tasks entrusted to ENGIE, which needs to obtain various types of public and private financing in addition to investments made by the city. £500m has already been spent in this way since 2010, exceeding the set targets. In 2016 alone, the target of £106m was exceeded by nearly £60m, giving a collected investments total of £165m.
of cumulative investment
And tomorrow ?
The North East Lincolnshire region has ambitions to become a paragon of virtue in energy use. By installing solar panels on the roofs of municipal buildings, the municipality has become more self-sustaining. ENGIE is also working with the municipality in the larger-scale, more cost-effective purchase of greener energy derived from wind power and biomass. Grimsby, the largest town in the region, already gets 28% of its energy from renewable sources, making it the UK’s renewable energy “capital”.