Worthing Heat Network Project

A Tender Notice
by WORTHING BOROUGH COUNCIL

Source
Find a Tender
Type
Contract (Services)
Duration
40 year
Value
250M
Sector
INDUSTRIAL
Published
11 Apr 2022
Delivery
To 16 May 2062 (est.)
Deadline
16 May 2022 12:00

Concepts

Location

West Sussex (South West)

Geochart for 2 buyers and 0 suppliers

2 buyers

Description

Worthing Borough Council (WBC) is seeking interest and proposals from suitable economic operators for its project to finance, design, build, operate and maintain a heat network in Worthing using a corporate concession model. The Project is to provide heat to approximately 22 existing buildings in Worthing town centre, including both Worthing Hospital (and satellite buildings) and Splashpoint Leisure Centre and a further five large development sites currently in planning and to assist WBC to meet its declared aim to be carbon neutral by 2030 and to assist Worthing to decarbonise by 2045. Further detail is set out in Section VI.3.

Total Quantity or Scope

Worthing Borough Council (WBC) is seeking expressions of interest and proposals from suitable economic operators for its project to finance, design, build, operate and maintain a heat network in Worthing (Project). The project will provide heat to approximately 22 existing buildings in Worthing town centre, including both Worthing Hospital (and satellite buildings) and Splashpoint Leisure Centre and a further five large development sites currently in planning and to assist WBC to meet its declared aim to be carbon neutral by 2030 and to assist Worthing to decarbonise by 2045. Following WBC's successful application for HNIP funding, WBC will be using a corporate concession model to deliver the Project with a concessionaire appointed to deliver (either directly or through its supply chain) all of the assets and infrastructure comprising the network, using a ring-fenced special purpose company. That company will have the right to operate, maintain and further develop the network in perpetuity, subject to complying with the project documents. For the estimated value of the contract referred to in Section II.1.5 and II.2.6, it is mandatory to insert one figure rather than a range. The figure inserted is the upper end of the estimated value of the contract, which is £50m - £250m. This estimate is based on a number of factors. The first is WBC's initial assessment of estimated minimum revenue over a 40 year period based on the reference solution which was calculated for the purposes of the HNIP application and taking into account the operational life of the relevant infrastructure. The second is WBC's estimate of potential value of the Project to a tenderer based on the concession structure with the right to operate the concession potentially lasting for an indefinite period and the ability for bidder to develop their own proposals to expand the network in the future and operate it successfully. Applications to participate in this procurement process should be made by submission of a completed Selection Questionnaire by the deadline set out in section IV.2.2. in accordance with the instructions in the document and the associated Selection Questionnaire Instructions to Bidders. Further detail on the background and structure of the Project is set out in the procurement documents and in Section VI.3

CPV Codes

  • 65000000 - Public utilities
  • 09323000 - District heating
  • 45232140 - District-heating mains construction work
  • 45251250 - District-heating plant construction work
  • 71321200 - Heating-system design services
  • 71322200 - Pipeline-design services
  • 65410000 - Operation of a power plant
  • 45259000 - Repair and maintenance of plant
  • 09300000 - Electricity, heating, solar and nuclear energy
  • 71314200 - Energy-management services
  • 38551000 - Energy meters
  • 39715200 - Heating equipment

Indicators

  • Bids should cover the whole contract.
  • Renewals are not available.
  • Award on basis of price and quality.

Other Information

To respond to this opportunity please click here: https://www.delta-esourcing.com/respond/6FTGN2722T The contracting authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). However, any selection of tenderers will be based solely on the criteria set out for the procurement. Once operational, the proposal is that the network will provide low carbon energy to a variety of customers in the Worthing area, with the intention to allow for further expansion in the future. The identified customers in the first phase are primarily public sector organisations (as listed below) (Phase 1 Customers). The Phase 1 Customers have identified specific energy needs and, in particular, given their technical requirements for low carbon energy and geographical location have chosen to be part of the Project to allow these needs to be met. As result, the Phase 1 Customers will enter into energy supply contracts directly with the energy services company (ESCO) to be established as part of the Project. WBC is procuring the connection and supply of energy from the new network to approximately 22 buildings in the first phase the Project on behalf of itself and the following other contracting authorities who are Phase 1 Customers: •University Hospitals Sussex NHS Foundation Trust (Worthing Hospital and satellite buildings) •West Sussex County Council •Ministry of Justice/HM Courts & Tribunal Service •South Downs Leisure Trust •Worthing Theatres and Museum Trust Heads of terms and/or letters of intent have been negotiated with each of the Phase 1 Customers in relation to the extent of their respective roles in the Project and the terms of the energy connection and supply arrangements referred to above. Further detail of the status of these arrangements will be made available in the procurement documents. In addition, the Project will also bulk supply to commercial offtakers as part of the first phase and additional connections have been identified for future phases. Given the structure of the Project, there are potentially additional offtakers who may seek to meet their connection and/or supply requirements via the new network once it's operational. The above represents the widest potential list of public sector offtakers which WBC is aware at the date of this notice for Phase 1. Also set out below is a list of other potential public sector offtakers that WBC is also aware of as at the date of this notice. These are the public sector partners identified in the original feasibility study conducted on behalf of WBC: •Sussex Community NHS Foundation Trust •Sussex Partnership NHS Foundation Trust •Worthing Medical Group •All General Practices within the Borough of Worthing •Lyndhurst Infant School (maintained school), •Davison Church of England High School for Girls (Church of England (Diocese of Chichester Education Department) voluntary controlled school) •Sussex Police •Environment Agency If WBC becomes aware of any other potential offtakers (either from the public or private sector) during the procurement process it will notify the tenderers accordingly. The other potential public sector offtakers may include other local authorities; NHS bodies; maintained schools, voluntary aided/controlled schools, academy schools or other education institutions and/or any other contracting authorities based in or operating in the Borough of Worthing and the West Sussex area. For the purposes of Section II.2.7 (Duration), it is mandatory to enter a figure for contract duration in the template for this notice. The term of 40 years (480 months) has been inserted as this was one of the factors used to calculate the estimated contract value (as set out above). However, as set out in Section II.2.4, the duration of the Project is not time limited, subject to complying with the project documents. For more information about this opportunity, please visit the Delta eSourcing portal at: https://www.delta-esourcing.com/tenders/UK-UK-Worthing:-Public-utilities./6FTGN2... To respond to this opportunity, please click here: https://www.delta-esourcing.com/respond/6FTGN2722T GO Reference: GO-2022411-PRO-19950898

Reference

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