Rotterdam Green Buildings

Rotterdamse Groene Gebouwen

Program Authority:

Municipality of Rotterdam

Program Delivery Unit :

Project Management Bureau

Summary

Rotterdamse Groene Gebpuwen (Rotterdam Green Buildings) relates to the retrofitting of Rotterdam’s municipal property and is an important component of the Municipality of Rotterdam’s approach to climate mitigation in Rotterdam. The programme intends to enhance the sustainability of the municipal property by improving its energy performance and reducing its CO2 footprint, by optimising its maintenance and by improving indoor climate and comfort based on the principle of Energy Performance Contracting (EPC).

It is one of the programmes of the Rotterdam Climate Initiative (RCI), a climate programme started in 2007 by the Municipality of Rotterdam, the Port of Rotterdam, Deltalinqs (employers’ organisation) and DCMR (Environmental Protection Agency Rijnmond). With this programme the municipality contributes to the ambition of the Rotterdam Climate Initiative which targets to reduce the emissions of CO2 with 50%, for the city as well as for the port, by 2025 relative to 1990, to become 100% climate change resilient and to strengthen the Rotterdam economy.

The programme’s ambition is to enhance, in the long run, the sustainability of its whole core municipal property or social purpose real estate. The whole municipal property is relates to about 3500 buildings and some 1700 buildings are considered to belong to the core portfolio. This core portfolio includes swimming pools, sports halls, offices, schools, museums and theatres.

Its approach is to pool or cluster buildings of the same type in order to increase the scale of the project, thus increasing its purchasing power and allow for transaction costs and energy efficiency optimisation.

The municipality planned to have 4 clusters tendered for retrofitting by 2014.

The pilot project of the programme related to a first cluster of buildings to be made sustainable through building retrofit and EPC contracting. It concerned 9 swimming pools considered to be major energy consumers within the municipal property. This first cluster was tendered in 2010 and got awarded to the ESCO in 2011.

After execution and experiences with the pilot project the municipality launched in 2014, with two other municipalities, two additional tenders relating to one cluster offices/workplaces (with the municipality of Schiedam) and one cluster of buildings with public function (with the municipality of Vlaardingen). So far only the municipality of Rottterdam’s portion of the cluster offices/workspace has been awarded.

The programme received European Regional Development Funding through INTERREG North-West Europe (NWE), a Programme of the European Union to promote the economic, environmental, social and territorial future of the North-West Europe area.

The City of Rotterdam has invested about 1M € in the process costs of the pilot project.

Documents

Rotterdam Green Buildings EN [1]

Edificios ecológicos para Róterdam ES [2]

Зелените сгради на Ротердам BG [3]

Bâtiments écologiques de Rotterdam FR [4]

Overview

Ownership:

Public [5]

Implementation Model:

Energy Performance Contracting (EPC) [6]

Operating Services:

Aggregation [7]

Facilitation [8]

Assessment [9]

Type of Project:

Energy Efficiency (building retrofits) [10]

Ambition/Targets:

Up to 35% reduction of energy consumption [11]

Benificiaries:

Public Sector [12]

Funding Vehicle:

Financial Institutions [13]

ESCOs [14]

Financial Instruments:

Loans [15]

Grants [16]

EPC financing [17]

Scalability of the Model:

High [18]

Development Maturity:

Mature [19]

Financing Model

Model Description

How does it work?

The Municipality of Rotterdam, through its Urban Development Division (today Stadsontwikkeling) is considering the retrofitting of its municipal property based on the principle of clustering of buildings.
To this end, and based on the experiences with the pilot project, the clusters to be retrofitted are being identified and prioritised by the Urban Development Division based on an own developed assessment framework considering different technical, organisational, financial and legal criteria.
Once the cluster to be retrofitted based on EPC contracting has been defined and has received approval for execution the procurement process of an ESCO can start.
In this programme standard procurement rules apply and the UDP needs to initiate a tender process. The municipality has chosen for the competitive dialogue. The UDP has facilitated this tendering process by providing a series of standardised documents covering all the stages of the tendering process. The documents have been published and are available for use by any interested third party.
The contract is awarded on the basis of most economically advantageous tender and a Maintenance and Energy Performance Contract (M-EPC) is concluded between the ESCO and the UDD.
The selected ESCO installs the guaranteed energy efficiency measures and indoor climate improvement measures, delivers the service and carries out measurement and verification during the agreed contract period. Service also includes regular maintenance and management of the property.
The Municipality has favoured a project financing structure based on third party financing and more specifically financing by the ESCO. The starting point is that the guaranteed reduction in energy charges will cover the investment and maintenance costs and, where possible, the improved end-user quality. The ESCO has the liberty to finance the investments based on its own funds or, at its discretion, with funding from a financial institution.
The first retrofit cluster of 9 swimming pools, for instance, has for 10% been financed based on equity provided by the ESCO and for 90% by loans provided by a bank to the ESCO.

Organization and Partnerships

City of Rotterdam: programme owner and political initiator

Project Management Bureau (PMB): is the permanent project management office of the municipality of Rotterdam. It provides staff, procedures, tools and services for the Green Buildings programme. It offers program delivery unit services such as project facilitation and project management.

ERDF ( European Regional Development Fund): aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions.

INTERREG North-West Europe (NWE): programme of the European Union to promote the economic, environmental, social and territorial future of the North-West Europe area.

Beneficiaries

Beneficiaries:

Municipality of Rotterdam’s owned public buildings: sports halls, swimming pools, schools, offices, theatres and museums

Operational Support:

Project facilitation through the Project Delivery Unit

Financial Support:

N/A

Program Delivery Unit

A Project Management Team (today Project Management Bureau - PMB) is the program delivery vehicle of the Rotterdam Green Buildings energy retrofitting programme. It acts as the project and programme management office of the programme under supervision of its steering group. The steering group is, headed by the director Real Estate (today Director Cluster Stadsontwikkeling) and represents the Municipality of Rotterdam. The steering group is the authority taking strategic decisions such as go/no go, it decides on risks, staffing, communications, etc.

The PDU takes care of the preparation and execution of the decisions of the steering committee.

It is responsible for the realisation of the project planning within the defined budget and the energy efficiency objectives set-forth. It is also responsible for the drafting of the ambition document and the tendering strategy and the development and continuous fine-tuning of best practice approaches, templates and standards.

The PDU has a major role as facilitator and project manager, this means, to manage and coordinate the entire retrofit process from cluster identification and contract tendering and negotiation to the implementation of energy efficiency measures and service delivery.

The PDU receives the support from other disciplines and various departments of the municipality of Rotterdam and from external specialists and consultants.

Today the cluster Stadsontwikkeling (Urban Development) of the municipality of Rotterdam has a full-fledged project management organisation known as the Project Management Bureau (PMB). PMB is part of the Project Management and Engineering Administration within the cluster Urban Development. PMB is the common home base for all physical projects related to Rotterdam’s urban development. The Rotterdam Green Buildings programme is just one of the many programmes that they run.

The cost of the PMB are fully supported by the municipality of Rotterdam.

Program Delivery Unit Box

Legal Structure:

N/A

Shareholders:

N/A

Staff Requirements:

Less than 10 full time employee [20]

Operational Costs:

Unknown [21]

Impact on Public Balance Sheet:

Low [22]

Financial Details

Funding Mechanism

Delivery Unit Funding:

Received funding from European Regional Development Funding through INTERREG North-West Europe (NWE),

Projects Funding:

Projects are being funded by the ESCO.

Results

The Rotterdam Green Buildings programme has seen the following retrofitted until today:

A first retrofit of a cluster consisting of 9 swimming pools:

Investment amount of 2,6M €
Energy efficiency of 34%
Saving of 43% gas, 56% electricity, 35% heating and 9% water
CO2 emissions decrease of nearly 2000 tonnes
Maintenance cost saving of 15%
Improvement of water quality in 7 of 9 swimming pools.

The second retrofit project relates to a cluster of buildings, ownership of the municipality of Rotterdam, consisting of offices and workspaces for a total of 36.740 m². The contract started in January 2015.

Contacts

Municipality of Rotterdam

Contact Stadsontwikkeling

Wilhelminakade 179

3072AP Rotterdam

Postbus 6575

3002AN Rotterdam

E-Mail:

stadsontwikkeling@rotterdam.nl [23]

Sources

www.rotterdam.nl/groenegebouwen [24]
http://www.ppsnetwerk.nl/projecten-Database/179/ [25]
http://www.rotterdam.nl/projectmanagementbureaupmb [26]
Lindenbergh Jako, ESCo en Financiering. Voorbeeld Rotterdamse Groene Gebouwen, CoreNetbijeenkomst, 16 May 2012
Factsheet Rotterdamse Groene Gebouwen –cluster zwembaden, www.rotterdam.nl/groenegebouwen [24]
Green Deal Rotterdam Climate Initiative, www.rotterdamclimateinitiative.nl [27]
Uitkomsten marktconsultatie Rotterdamse Groene Gebouwen, Gemeente Rotterdam Ontwikkelingsbedrijf, 1 March 2010 http://www.rotterdam.nl/uitkomsten_marktconsultatie [28]
Rotterdam Swimming Pools ESCo, project description, 2015, http://www.strukton.com/projects/rotterdamswimmingpoolsesco/ [29]
The Rotterdam Green Buildings Programme, 2015
http://www.rotterdamclimateinitiative.nl/en/projects/the_rotterdam_green... [30]
Model Financieringsstructuur ESCo. Formule Rotterdamse Groene Gebouwen cluster zwembaden,Gemeente Rotterdam Ontwikkelingsbedrijf, 1 June 2011
Model Afwegingskadervoor toepassing OEPC. Formule Rotterdamse Groene Gebouwen cluster zwembaden, Gemeente Rotterdam Ontwikkelingsbedrijf, 1 June 2011
Procesbeschrijving aanbestedingprocedure Formule Rotterdamse Groene Gebouwen cluster zwembaden, Gemeente Rotterdam Ontwikkelingsbedrijf, 1 June 2011
Press release Rotterdam maakt zwembaden groener, www.rotterdam.nl/pers [31], 7 April 2011
Press release Rotterdam selecteert drie partijen voor verduurzamen Rotterdams vastgoed, Gemeente Rotterdam Ontwikkelingsbedrijf, 15 June 2010
Press release Aanbesteding voor duurzaam Rotterdams vastgoed van start, Gemeente Totterdam Ontwikkelingsbedrijf, 31 March 2010
Selectieleidraad 1-501-14 Groene Gebouwen, Cluster Kantoren/werkplaatsen en Cluster gebouwen met publieke functie, College van burgemeester en wethouders Rotterdam, 20 January 2014