Scottish Green Bus Fund

The Scottish Green Bus Fund 2 was officially launched on 17 January 2012.

Keith Brown, Minister for Housing and Transport, has now announced the successful bidders to the Scottish Green Bus Fund 2.

£1.8m has been awarded to five bus operators across Scotland. This funding will see 26 new low carbon buses introduced to the Scottish bus network. The winning bids are set out in the table below. Full details of the announcement.

The Scottish Government received EU State Aid approval in respect of the Scottish Green Bus Fund 2 on 15 March 2012.

Purpose

The aim of the fund is to  further support the wider roll out of low carbon buses across Scotland and builds on the success of the first Scottish Green Bus Fund held in 2010-2011.  Details are available of the first fund. 

Bids can be made to the Scottish Green Bus Fund 2 for grant to help buy new Low Carbon Vehicles (LCV) – both double decker and single decker buses, including midibuses (but not minibuses).

Funding

• The Scottish Green Bus Fund 2 will operate as a Challenge Fund with a fixed budget of £2 million in the financial year 2011-2012
• Grants will be offered to successful bidders for up to 80% of the price differential between a LCV and its diesel equivalent
• No more than £750,000 will be offered to any one bidder (though joint bids can be submitted for more than £750,000)
• Bus companies should bear in mind that the £750,000 maximum applies collectively across all their subsidiary companies.

Who Can Apply?

Bids are invited from:

• Bus Operators (including Community transport operators)
• Local Authorities (LAs)
• Regional Transport Partnerships (RTPs)
• Companies leasing/renting LCVs to the above bodies in Scotland.

Process – Key Dates

• Bidders will have from 17 January 2012 to put together bids with bus manufacturers before the closing date of 24 February 2012
• The Bidding Document details how the fund will operate and should be read carefully before submitting a bid
• Bus Operators and Companies leasing/renting LCVs should use the Bidding Proforma to make their bid
• Local authorities and Regional Transport Partnerships should use this Bidding Proforma to make their bid
• Guidance for Bus Manufacturers is available see “Certification of Dedicated Gas Buses as Low Carbon Vehicles”
• Successful applicants will be announced in early to mid March 2012
• Successful bidders will be required to place ALL orders with bus manufacturers no later than 31 March 2012.  Grant will only be paid on bus manufacturers’ confirmation of orders placed by this date
• Given the relatively short timescale to place orders, we suggest LAs and RTPs consider initiating any tendering exercises for proposed vehicles at the same time as preparing their bid.  They will then be best placed to proceed should their bid be successful.

Register of Interest

In order to gauge the level of interest in the Scottish Green Bus Fund 2, it would be helpful if those interested in making a bid register their interest by providing the Company/Local Authority/RTP name, number of buses intending to bid for and contact details to:- Scottishgreenbusfund2@scotland.gsi.gov.uk

Closing Date for Bids

Completed Bidding Proforma should be submitted online to Scottishgreenbusfund2@scotland.gsi.gov.uk by 17.00 on Friday 24 February 2012.

EU State Aid Implications

In order to have wider powers to pay grant under the Scottish Green Bus Fund 2, the Scottish Government considers it necessary to make a formal State aid application to the European Commission.  We are doing this in parallel with running the Fund and expect to receive the outcome before the closing date for bids.  All bidders should note that no grant will be paid until EU State aid approval has been granted.

Enquiries

Any enquiries about the scheme should be e-mailed to:-Scottishgreenbusfund2@scotland.gsi.gov.uk or tel 0131 244 7760.