GM CAP Clean Vehicle Financier Framework

Tender description

<p>As part of the GM CAP, TfGM, on behalf of the ten Local Authorities, is intending to establish contracts for participation in a Finance Provider Framework for the provision of access to affordable finance (Vehicle Finance) for eligible applicants who require assistance in funding the cost of upgrading from a vehicle that is non-compliant with the emissions standards of the Greater Manchester Clean Air Zone (GM CAZ) and would be subject to a daily charge (&ldquo;Non-Compliant Vehicle&rdquo;) to a vehicles that is compliant with the emissions standards of the GM CAZ (&ldquo;Compliant Vehicle&rdquo;), subject to meeting eligibility criteria and availability of funds. Applicants may, alternatively apply for a Grant rather than Vehicle Finance &ndash; the administration of such Grants will managed by the CVFS provider, a separate procurement exercise which will run in parallel to this procurement (see further details below). A panel of Finance Providers will be appointed for the purpose of providing Finance Contributions to Eligible Applicants under the Clean Funds Scheme. This panel will be appointed to provide financing coverage across the range of commercial vehicles (taxis, vans and LGVs, HGVs) captured within the Clean Funds Scheme eligibility criteria. Finance Providers will be required to provide Eligible Applicants with finance agreements using a financial contribution to cover the cost of the finance agreement. TfGM is intending to establish and manage a panel or framework of experienced, FCA regulated vehicle finance providers (&ldquo;Finance Providers&rdquo;). TfGM intends to provide a financial contribution in respect of each loan agreement concluded by a Finance Provider with an applicant business (&ldquo;Applicant&rdquo;), such that the panel members are able to offer attractive financial packages to eligible vehicle owners. Although it will make such financial contributions, TfGM is not intending underwriting or guaranteeing any of the loans, and thus the Finance Providers will still be exposed to the credit and default risk of each Applicant / borrower. Nor will TfGM guarantee or underwrite any volume or quantum of loans. The overall aim of the scheme is to address and reduce the adverse impacts on individuals, companies and organisations of financing an upgrade to a compliant vehicle, without reducing the effectiveness of the GM CAZ</p> Keywords: Finance, Vehicles, Loans, Grants