GWYNT Y MÔR OFFSHORE WIND FARM

GWYNT Y MÔR OFFSHORE WIND FARM

Gwynt y Môr Community Fund – An exciting opportunity to make a
significant, long term positive impact in the North Wales area.

Gwynt y Môr Offshore Wind Farm is RWE Innogy UK’s (formerly RWE npower renewables)
flagship renewable energy project which once constructed will be the second largest
operating offshore wind farm in the world.

The 160 turbine wind farm represents an investment of over £2billion, and is being built by
RWE Innogy UK (Innogy) in Liverpool Bay, off the North Wales coast. The project is being
funded by Innogy, in partnership with Stadtwerke München GmbH, and Siemens AG. RWE
has also agreed terms for the UK Green Investment Bank to take a 10% share of the project,
once the wind farm is complete.

The construction of Gwynt y Môr Offshore Wind Farm carries with it a commitment to deliver
community funding worth £768,000 each year of the operational lifetime of the project
(which we expect to be up to 25 years). The total funding level will be index linked each year
in line with the retail price index.

We are looking for an organisation or organisations to oversee the optimal investment of this
funding into the North Wales area. An excellent track record and experience in delivering
funding and working with North Wales communities is essential. We are also keen to see
additional benefits brought in the form of innovation, maximising the financial benefit,
delivery partners and use of existing networks etc. This is an unusual and exciting funding
opportunity because:

   •   This funding is long term (up to 25 years) and reliable, allowing commitments to be
       made and projects to plan with confidence;
   •   This funding is from the private sector so can be used to match a wide range of other
       funding sources to make it worth even more; it is not governed by state aid
       restrictions;
   •   This funding is fully flexible, meaning it could be used to support projects of different
       sizes, types and even address those that are traditionally considered harder to fund or
       risky;

NRL4056 – GYM Community Fund Management                                                   Page 1

•   Funding could potentially be accessed by a wide range of organisations including the
       voluntary sector, social enterprise and even the private sector and individual members
       of the public;
   •   Unlike many funding sources there are no restrictions on how it could be delivered –
       so we can consider different options including grants and loans.

To date Gwynt y Môr Offshore Wind Farm Ltd has completed an extensive public consultation
exercise to understand more about the priorities of the area and how local people think the
funding should be invested. It has convened an Advisory Group of local stakeholders,
representing the public, private and third sector and the broad North Wales geographical
area to provide local advice and expertise on how best to take the results of the consultation
forward into the proposed structure for funding delivery.

Gwynt y Môr Offshore Wind Farm Ltd wants to work with an organisation that:
  • Is appropriately constituted to take full responsibility for all administration of funds
     including delivery of grants and loans (we may consider a partnership with a third
     party to deliver any loans component)
  • Can retain the flexibility of this funding source not currently subject to state aid rules
  • Will work with Gwynt y Môr Offshore Wind Farm Ltd to promote availability of funding
     as well as successful fund delivery
  • Will employ a dedicated “coordinator” to support delivery of the funding – this should
     create a new job or secure an existing position
  • Will arrange and manage a decision making panel
  • Can work alongside the North Wales Economic Ambitions Board and / or any other
     strategic partners to ensure a joined up approach to funding delivery
  • Can continue to involve the Gwynt y Môr Advisory Group at a strategic level
  • Will build relationships with other funders active in the area to support better grant
     making
  • Will complete all grant monitoring and reporting
  • Can provide ongoing support to projects – which may include signposting to other
     appropriate agencies and funding sources
  • Can maximise the impact of the investment by highlighting opportunities to lever
     funds from other sources
  • Has experience working with communities in the North Wales area
  • Has a track record of supporting activity in the areas of the strategic themes

Organisations invited to tender can make a submission to deliver both the whole package of
support or in certain circumstance submissions may be considered to run either the smaller
grants scheme or the support for medium / large projects.

Please visit the website for more information about the funding that will be available, the
results of the consultation and details of the Gwynt y Môr Community Funding Advisory
Group including meeting notes.

Please also visit our website if your organisation would be interested in tendering for this
opportunity. Please express your interest by completing the tender contact data sheet that
can be downloaded from the website. You will also find a timetable for the procurement
process to assist you with planning to engage in the process. In the first instance
organisations will be asked to complete a pre-qualifying questionnaire.

                       www.rweinnogy.com/gwyntymor/communities

NRL4056 – GYM Community Fund Management                                                 Page 2

Structure for funding delivery

This structure has been developed following the community consultation in 2011/12 with
support from the Gwynt y Môr Community Investment Advisory Group. The intention is that
projects should not be assessed in isolation and that funds are delivered to enhance other
existing and planned investment activity in the area.

The successful organisation(s) will be required to employ a dedicated coordinator who will be
required to build and maintain the relationships required to deliver this approach. There will
be an allocation of funds for smaller scale, grass roots community grants with a very simple,
straightforward application process. Medium and large projects will be delivered through a
structure which aims to support the development of projects which complement and
collaborate with other activities in the area of benefit to work towards the strategic themes
(see below). These were developed from the results of the consultation activity with support
from the Gwynt y Môr Advisory Group.

The Advisory Group will continue to have a role advising Gwynt y Môr Offshore Wind Farm
Ltd. This will include reviewing funding delivery and reviewing strategic funding themes. Its
main relationship will continue to be with Gwynt y Môr Offshore Wind Farm Ltd, with its link
to the administering organisation through the Coordinator role.

The Coordinator will be required to build relationships with the North Wales Economic
Ambitions Board and / or any other relevant partners who will offer strategic advice in
relation to medium and large funding applications.

The Coordinator will be required to arrange and support the decision making panel.

NRL4056 – GYM Community Fund Management                                                   Page 3

Strategic funding themes – to be reviewed after 5 years

Theme 1 – Building strong, cohesive and sustainable communities
     • That share a common vision where peoples differences are appreciated and
         accepted;
     • Where people have the same opportunities regardless of background;
     • Where people of different backgrounds can develop strong positive relationships;
     • Where people want to live and work now and in the future;
     • That are prosperous, vibrant and improve people’s quality of life;
     • That are resilient to future economic, environmental and social changes;
     • That thrive during good times and bad.

Theme 2 – Developing prosperous, enterprising communities with strong economic growth
     • Creating new job opportunities in the private and voluntary sector including social
         enterprise and self-employment;
     • Sustaining existing jobs;
     • Helping people to develop new skills required to enter economic activity;
     • Providing ongoing support and mentoring for people entering training and
         employment;
     • Linking people to employment opportunities.

Theme 3 – Reducing poverty and inequality in communities
     • Reducing unemployment and raising household incomes;
     • Improving skills of young people and families;
     • Improving the health and educational outcomes of children, young people and
         families living in poverty.

Area of benefit

This will include coastal areas of Conwy, Denbighshire and Flintshire in North Wales. The
map below is intended as a guide only. Importance will be placed on the area of impact.

NRL4056 – GYM Community Fund Management                                                Page 4

Two entry routes for support from the Gwynt y Môr Community Fund

   Small grants of up to £10k

   > Annual allocation of £150k across area of benefit with decisions on awards made by a
     decision making panel of community/cross sector representatives
   > The decision making panel would be responsible for considering spread of allocation
     across the area of benefit
   > Focus and criteria set in line with top level themes, potential to be revisited annually
     by the decision making panel with support from the Advisory Group
   > Flexibility for panel to respond to local change
   > Helping smaller projects to be strategic
   > Managing expectations about how many projects can be supported
   > Separate very simple quick application process
   > Quick turnaround ideally 3 to 4 rounds per year

Support for medium and large scale projects

   > Detailed focus and criteria for first 5 years set in partnership with Advisory Group and
     RWE, both parties to be involved in review process
   > Some flexibility on area of benefit / fuzzy boundaries subject to significant impact
     within main area
   > Stage 1 – expression of interest
   > Reviewed by “Coordinator” with support from strategic partner (North Wales
     Economic Ambitions Board – EAB)
   > Opportunity to offer advice, suggest potential partnership working with other
     applicants to this or other funding streams or other organisations, suggest
     modifications to improve strategic delivery
   > High quality well developed projects moving to stage 2
   > Stage 2 – full application
   > “Coordinator “collects and collates comment and advice from strategic partner – EAB
     and recommends solutions
   > Reviewed by decision making panel – successful applicants to be awarded “package of
     support”. Package of support may include, but not be limited to, grant, loan, sliding
     timescales to support sustainability, support, advice and funding links
   > Decision making panel responsible for decision and allocation of funds
   > Stage 3 – ongoing support and monitoring – further detail being developed by
     advisory group in partnership with Centre for Regeneration Excellence Wales

Total annual funding that will be available

   •   2014 – TBC
   •   2015 to 2019 – £658,000 (plus index linking)
   •   2020 to end of generation - £768,000 (plus index linking)
   •   Final year – possible pro-rated payment
   •   Tender submission will be required to outline administration costs which will be paid
       from the fund.
   •   In addition a further Gwynt y Môr selected project will be supported in years 2015 to
       2019 through a separate arrangement – full details to be announced shortly.

NRL4056 – GYM Community Fund Management                                                Page 5