Eco Building Fund

The Fund aims to subsidise residential buildings, commercial buildings, industrial buildings and composite buildings and their nearby ancillary facilities by carrying out retrofitting projects for improving energy efficiency in communal areas.

The energy efficiency improvement retrofitting projects may include any of the following building services installations :

• Lighting
• Air-Conditioning
• Lift and Escalator
• Electrical installation (e.g. water pump and etc)

Despite retrofitting projects, the following projects will also be supported by the Fund:

• Retro-commissioning​
• Implementation of smart technologies in building

Composite building is a building which is allowed for multiple purposes, e.g. for residential and commercial use.

“Retro-commissioning” is a cost-effective systematic process to periodically check an existing performance of building services installations. The process identifies operational improvements that can effectively save energy, for instance adjustment to the setting or control of the air-conditioning system.

Retro-commissioning is a new energy saving initiative launched by the Electrical and Mechanical Services Department (EMSD). It aims to improve the energy efficiency of existing buildings by identifying areas for improvement through systemic assessments. We have worked with EMSD to develop an assessment methodology/tool for assessing retro-commissioning project funding applications and have already started accepting these applications.

One of the most common examples is installing a system to monitor and control the operation of building services installations.

Residential buildings, commercial buildings, industrial buildings, or composite buildings located within CLP's supply area and their nearby ancillary facilities are eligible to apply for the Fund.

• Buildings located outside CLP’s supply area
• Buildings directly owned and operated by the Government (e.g. Government offices)

• Owners’ Corporations registered under the Building Management Ordinance (Cap. 344)
• Owners' organisations (e.g. Owners' Committee)
• Residents' organisations (e.g. Mutual Aid Committee)

For the commercial buildings, industrial buildings or composite buildings without Owners’ Corporation or other owners’ organisations as specified above, the building owner may also apply for the Fund.

Priority will be given to projects with higher energy saving cost effectiveness, aged, first of the applicant’s application etc.

Yes, multiple applications from the same Applicant Organisation / Applicant are allowable. Applications shall cover different types of project or different parts of the buildings.

The amount of funding for retrofitting projects will be around 10% to 50% of the actual project expenditure, depending on the type of building, the type of installation and project duration. Project expenditure shall restrict to the cost of energy efficiency installations and the cost of Qualified Service Provider appointment.

The amount of funding for retro-commissioning and implementation of smart technologies will depend on the amount of the energy saving and project duration. The more energy the project will saved and the soonest the project will be completed, the more funding will be granted.

The Project must be completed no later than 24 months from the funding approval date to obtain funding. If the Project could be completed within 9 months or 18 months, higher amount of funding can be granted. Please refer to Table 2.4 of the Guide to Application – CLP Eco Building Fund for details.

For the retrofitting project with expenditure of HK$100,000 or below (excluding the cost of engaging Qualified Service Provider), full subsidy will be provided to the cost of engaging Qualified Service Provider for the project, subject to a ceiling of HK$10,000.

Only 12 months Defect Liability Period (DLP) services would be accepted by the Fund. If the tender (total sum) has included DLP services after 12 months, the applicant shall request the contractor to provide the costs for the extra services. The extra maintenance cost would not be subsidised by the Fund.

If the project has been subsidized by other funding, applicant organisation / applicant can still apply for the Fund. But the amount of other funding will be deducted from the grant offered by the Fund.

Yes with full justifications. Such requests will be considered by CLP and the CLP Eco Building Fund Vetting Committee.

The applicant organisation / applicant should include the insurance policy expenditure in the project’s estimate. The funding should cover reasonable insurance premiums. CLP and the CLP Eco Building Fund Vetting Committee shall bear no financial or other responsibilities for any extra expenditure arising from the projects (including any claims for compensation); nor will any funding be provided under the funding scheme to cover such expenditure.

For funding disbursement (Works, Qualified Service Provider (QSP) and Account Auditor where applicable), the following documents must be submitted for assessment –

• Copy of records of meeting confirming acceptance of tender by the applicant organisation / applicant.
• Copy of signed contracts between applicant organisation / applicant and the selected contractors.
• Certified copy of invoices and receipts. [Note i]
• Applicant should check if the person-in-charge (PIC) has been changed and relevant information has been submitted.
• Applicant should check if QSP has been changed and the relevant information has been submitted, including –
  • Information stated in the application form;
  • Professional qualification documents. [Note ii]
• Clear site work completion photos.
• According to the Guide to Application, the following information must be submitted for assessment –
  • A completion report must be submitted to CLP after completion of the project and before applying for final disbursement of fund; (Clause 5.5)
  • A statement of account must be submitted to CLP after completion of the project and before applying for final disbursement of fund.

CLP may request applicant organisation / applicant to submit other relevant information if necessary.

Notes:

• The document shall be signed by the Chairman of the applicant organisation and chopped with applicant organisation (for application submitted by applicant organisation), or by the applicant (for application submitted by applicant).
• QSP’s professional qualifications shall satisfy the requirements as per clause 2.10.1 of the Guide to Application.

Funding will be disbursed on a reimbursement basis; that is to say, the recipient organisation / recipient must settle the payment on its own before seeking reimbursement from the CLP Eco Building Fund. The recipient organisation / recipient may propose a disbursement plan of the subsidy for CLP’s consideration. A maximum of three instalments will be allowed and the last payment shall be at least 10% of subsidy.

Subsidy will be disbursed on a reimbursement basis; that is to say, the recipient organisation / recipient must settle payment of the project on its own before seeking reimbursement of the subsidy from the CLP Eco Building Fund. The recipient organisation / recipient may propose a disbursement plan of the subsidy for CLP’s consideration.

The applicant organisation / applicant should fill in the proposed disbursement plan in the application form for consideration by CLP and the CLP Eco Building Fund Vetting Committee. Funds will be released according to the plan approved by CLP and the CLP Eco Building Fund Vetting Committee.

When applying for reimbursement, the recipient organisation / recipient should present required supporting documents and, if correct and clear documents are submitted, we will process the payout within 45 working days.

The applicant organisation / applicant shall engage a Qualified Service Provider to help submit the application and the Qualified Service Provider must be a Registered Energy Assessor stipulated under the Building Energy Efficiency Ordinance (Cap. 610).

The Qualified Service Provider is responsible to set out in detail the full scope of the Project, including justification of its cost-effectiveness; monitoring of the procurement of capital items, goods and services; supervision of the Project; submission of the Project’s monthly progress report(s) to CLP; and certification of the completion reports, with particular regard to the completed works’ compliance with the respective Building Energy Codes. The completion reports shall be submitted in the prescribed format.

The "Qualified Service Provider" must declare his / her relationship with the project contractor in the application form for consideration by CLP and CLP Eco Building Fund Vetting Committee.

If the property management company has already employed a "Qualified Service Provider" who has provided relevant service to the project applying for funding, the same service will not be subsidised by the Fund.

As engagement of more than one “Qualified Service Provider” will increase the project cost, applicant organisation / applicant is required to state the reason with supportive documents, full justifications should be given to CLP and the Eco Building Fund Vetting Committee for consideration.

Approval from CLP and the Eco Building Fund Vetting Committee is required for switching “Qualified Service Provider” if the project is in progress.

It is the responsibility of the project contractors to purchase relevant insurances for the project and their employees based on the project nature. The applicant organisation / applicant should ensure that the project contractor can present those relevant insurance documents as document proof.

a) What is the minimum number of tenders when engaging a "Qualified Service Provider"?

• There is no requirement of minimum number of tenders for engaging "Qualified Service Provider" by the applicant organisation / applicant.

b) Can the "Qualified Service Provider" appoint a project contractor for carrying out the works by tender exercise? If yes, should the tender exercise meet the minimum number requirement of tenders?

• Either "Qualified Service Provider" or the applicant organisation / applicant can select project contractors to carry out the works by conducting tendering exercise. But whoever conducts the tender exercise, the requirement of minimum number of tenders must be met.
• If the aggregate value of the procurement is more than HK$5,000 but less than HK$10,000, tenders should be invited from at least two prospective suppliers; if the aggregate value of the procurement is equal to or more than HK$10,000 but less than HK$200,000, tenders should be invited from at least three prospective suppliers; and if the aggregate value of the procurement is equal or more than HK$200,000, tenders should be invited from at least five prospective suppliers. [Note i]

c) If the project commences by a consultant from consultancy service, should the tender exercise be conducted by the consultant for appointing a project contractor for carrying out the works? If yes, should the tender exercise meet the minimum number requirement of tenders?

• Either consultant by consultancy service or the applicant organisation / applicant can select project contractors to carry out the works by conducting tender exercise. But whoever conducts the tender exercise, the requirement of minimum number of tenders must be met.

Notes:

• Only 12 months Defect Liability Period (DLP) services would be accepted by the Fund. If the tender (total sum) has included DLP services after 12 months, the applicant shall request the contractor to provide the costs for the extra services. The extra maintenance cost would not be subsidised by the Fund.

Any request for the change in funding must be approved by CLP and the CLP Eco Building Fund Vetting Committee with full justification. To avoid any unnecessary delay in the project, the applicant organisation / applicant should specify an adequate validity period in the tender document.

Applicant organisations / applicants should make the best effort to fulfil this requirement. To avoid this situation, applicant organisations / applicants are advised to invite tender from more suppliers than the required number, and to send invitation letters to prospective suppliers in addition to posting newspapers for tender invitation. For example, when the applicant organisations / applicants are proceeding with the tendering procedures for the lift or escalator retrofit works, they may make reference to the Registered Lift and Escalator Contractors list published in the Electrical and Mechanical Services Department's website (http://www.emsd.gov.hk/emsd/eng/pps/le_pub_mpr.shtml) to select sufficient and appropriate suppliers for tender invitation. If the suppliers decide not to submit tender proposal, applicant organisations / applicants should obtain decline letters from the suppliers and provide to CLP as a proof, but subject to final approval by CLP and the CLP Eco Building Fund Vetting Committee.

If the Applicant Organisation / Applicant wishes to select non-lowest bid bidder, who is among the bidders in the submitted list, full justification must be given to, and prior agreement obtained from, CLP and the Vetting Committee, prior to selection of the other bidder.

If the Applicant Organisation / Applicant wishes to select other bidder, who is not among the bidders in the submitted list, re-tendering and application re-submission are required. It is treated as a new application.

Please note that during the application assessment, the amount of funding would be assessed based on the lowest bid of the energy saving parts irrespective of the bidder ultimately selected.

In that case, the recipient organisation / recipient should provide full justifications to CLP and the CLP Eco Building Fund Vetting Committee for consideration.

Applicant organisation / applicant must complete the application form which can be downloaded from CLP Online website (www.clp.com.hk/ecobuildingfund). The completed application form should be returned to the following address at least four months before the commencement of the project:

Business Strategy & Innovation
Customer & Business Development
CLP Power Hong Kong Limited
7/F, Sham Shui Po Centre2
215 Fuk Wa Street
Sham Shui Po, Kowloon
[Application to CLP Eco Building Fund]

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Since the Fund is only granted to energy saving items, applicant organisation / applicant must provide the cost breakdown of the items. CLP and the CLP Eco Building Fund Vetting Committee has to assess the nature of each item to see if the items fulfil the objective of the Fund, and has the final judgement on the funding approval to each item.

Remark:

The prospective suppliers shall list out the unit costs and the number of units of each item with respect to the energy saving parts in their submitted bid for reference by CLP and the Vetting Committee in approving funding. If the submitted bid(s) does not list out the unit costs and number of units of each item with respect to the energy saving parts, it will be considered as invalid. If applicant organization / applicant selects the invalid bid(s), funding will not be granted.

After all the required documents have been submitted by applicant organisation / applicant, applicant organisation / applicant will normally be notified of the result in one to three months.

Yes, subject to approval of CLP and the CLP Eco Building Fund Vetting Committee and the funding may also be adjusted in the light of the revision.

Yes, subject to approval of CLP and the CLP Eco Building Fund Vetting Committee and the funding may also be adjusted in the light of the revision.

Normally, change in the composition of the recipient organisation will not affect the funding. But if the change results in a new person-in-charge for the project or affect the project schedule, approval from CLP and the CLP Eco Building Fund Vetting Committee is required for the funding to continue.

No, only hard copy of the completed application form is acceptable.

Multiple applications from the same Applicant Organisation / Applicant are allowable. Different applications shall cover different types of project or different parts of the buildings.

However, a previously declined application may be resubmitted only if it has been revised substantially or if the applicant organisation / applicant has been able to produce new evidence to address the comments made by CLP and the Vetting Committee in its earlier review. For a resubmitted application, the applicant organisation / applicant must set out clearly the differences between the resubmitted application and the original one. The revised application will be treated as a new application, and will be subject to the same assessment procedures as set out in the "Guide to Application".

All applications will be approved by CLP Eco Building Fund Vetting Committee or CLP.