Section one: Contracting authority
one.1) Name and addresses
Peterborough City Council
Sand Martin House, Bittern Way
Peterborough
PE2 8TY
Contact
Mrs Helga Kendall
Helga.Kendall@peterborough.gov.uk
Telephone
+44 1733384593
Country
United Kingdom
Region code
UK - United Kingdom
Internet address(es)
Main address
https://www.peterborough.gov.uk/business/supplying-the-council/supply-opportunities
Buyer's address
https://www.peterborough.gov.uk/business/supplying-the-council/supply-opportunities
one.3) Communication
The procurement documents are available for unrestricted and full direct access, free of charge, at
https://procontract.due-north.com/Advert/Index?advertId=a978660b-b6e3-ef11-8134-005056b64545
Additional information can be obtained from the above-mentioned address
Tenders or requests to participate must be submitted electronically via
https://procontract.due-north.com/Advert/Index?advertId=a978660b-b6e3-ef11-8134-005056b64545
one.4) Type of the contracting authority
Regional or local authority
one.5) Main activity
General public services
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
DN762135 Competitive Dialogue Process for Peterborough Integrated Renewable Infrastructure (PIRI) Project
Reference number
DN762135
two.1.2) Main CPV code
- 65000000 - Public utilities
two.1.3) Type of contract
Services
two.1.4) Short description
The Council is seeking a long-term Development Partner to enter into a golden share corporate special purpose vehicle (Project Co) with the Council for the development and delivery of the PIRI heat and power network. Project Co shall own, operate and delver the PIRI network. The Development Partner / Project Co will be required to provide:
- Investment
- Design and build of:
o a new district heat (DH) network across the City
o a new private wire (PW) network across the City
o new PERF heat offtake facility and expansion or modification of existing power offtake facility
o a new back up energy centre for the heat network
- Manage and maintain the assets
- Operate the new energy networks
- Manage the retailing of heat and electricity sales
Following completion of the procurement process, the Council will enter into a Development Agreement with the Development Partner. Under the Development Agreement the Development Partner will commercialise the PIRI network. The Development Period is intended to be a relatively short period of time that includes the following activity:
• negotiation and agreement with the Council of the offtake of heat and power from the Peterborough energy recovery facility;
• negotiation and agreement of the heat and / or power supply agreements with a number of private and public sector customers (including the Council) (as further detailed in [x] of the Descriptive Document);
• developing the financial model for the project;
• securing finance for the delivery of the PIRI network
• developing the design of the PIRI network;
• securing the necessary consents and land rights required to deliver the PIRI network; and
• procuring the contractors required to deliver the PIRI network.
If it is determined in accordance with the Development Agreement that the project is to be delivered by the Development Partner, the Development Agreement shall terminate, and the parties shall enter into a Shareholders' Agreement. The Shareholders Agreement shall govern the control of the parties in respect of Project Co. Under the Shareholders' Agreement the Council's rights of control will be limited to specific reserved matters.
It is anticipated that the network will provide heat and / or power to a number of private and public sector customers (including the Council) (as further detailed in the Descriptive Document) by way of contractual arrangements at the conclusion of the Development Period.
Where it is determined in accordance with the Development Agreement that the Development Partner will implement the PIRI network it is the Council's intention to enter into the connection and supply arrangements (in respect of both heat and power) with Project Co without undertaking a separate procurement.
The Contract Value is derived only from the existing TEM and therefore does not include expansion of the network.
The area of the PIRI network is within a prospective heat network zone (Heat network zoning maps - GOV.UK) and the Council is developing the project based on the Department of Energy Security and Network Zero's AZP model documentation.
two.1.5) Estimated total value
Value excluding VAT: £436,000,000
two.1.6) Information about lots
This contract is divided into lots: No
two.2) Description
two.2.2) Additional CPV code(s)
- 65000000 - Public utilities
- 71314000 - Energy and related services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement
The Council is seeking a long-term Development Partner to enter into a golden share corporate special purpose vehicle (Project Co) with the Council for the development and delivery of the PIRI heat and power network. Project Co shall own, operate and delver the PIRI network. The Development Partner / Project Co will be required to provide:
- Investment
- Design and build of:
o a new district heat (DH) network across the City
o a new private wire (PW) network across the City
o new PERF heat offtake facility and expansion or modification of existing power offtake facility
o a new back up energy centre for the heat network
- Manage and maintain the assets
- Operate the new energy networks
- Manage the retailing of heat and electricity sales
Following completion of the procurement process, the Council will enter into a Development Agreement with the Development Partner. Under the Development Agreement the Development Partner will commercialise the PIRI network. The Development Period is intended to be a relatively short period of time that includes the following activity:
• negotiation and agreement with the Council of the offtake of heat and power from the Peterborough energy recovery facility;
• negotiation and agreement of the heat and / or power supply agreements with a number of private and public sector customers (including the Council) (as further detailed in [x] of the Descriptive Document);
• developing the financial model for the project;
• securing finance for the delivery of the PIRI network
• developing the design of the PIRI network;
• securing the necessary consents and land rights required to deliver the PIRI network; and
• procuring the contractors required to deliver the PIRI network.
If it is determined in accordance with the Development Agreement that the project is to be delivered by the Development Partner, the Development Agreement shall terminate, and the parties shall enter into a Shareholders' Agreement. The Shareholders Agreement shall govern the control of the parties in respect of Project Co. Under the Shareholders' Agreement the Council's rights of control will be limited to specific reserved matters
It is anticipated that the network will provide heat and / or power to a number of private and public sector customers (including the Council) (as further detailed in the Descriptive Document) by way of contractual arrangements at the conclusion of the Development Period.
Where it is determined in accordance with the Development Agreement that the Development Partner will implement the PIRI network it is the Council's intention to enter into the connection and supply arrangements (in respect of both heat and power) with Project Co without undertaking a separate procurement.
The estimated value of electricity and heat income received by Project Co will be approximately £436m over a 40 year operating period. This includes variable, standing and connection charges and excludes inflation. The Project Company will continue to own the PIRI network following this period"
Capex Value: £82m which is before the assumed £13.5 GHNF capital.
The area of the PIRI network is within a prospective heat network zone (Heat network zoning maps - GOV.UK) and the Council is developing the project based on the Department of Energy Security and Network Zero's AZP model documentation.
two.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
two.2.6) Estimated value
Value excluding VAT: £436,000,000
two.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months
12
This contract is subject to renewal
No
two.2.9) Information about the limits on the number of candidates to be invited
Envisaged number of candidates: 3
two.2.10) Information about variants
Variants will be accepted: No
two.2.11) Information about options
Options: Yes
Description of options
Extension of agreements at the discretion of the contracting authority
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section three. Legal, economic, financial and technical information
three.1) Conditions for participation
three.1.2) Economic and financial standing
Selection criteria as stated in the procurement documents
three.1.3) Technical and professional ability
Selection criteria as stated in the procurement documents
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Competitive dialogue
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2024/S 000-034560
four.2.2) Time limit for receipt of tenders or requests to participate
Date
10 March 2025
Local time
12:00pm
four.2.4) Languages in which tenders or requests to participate may be submitted
English
four.2.6) Minimum time frame during which the tenderer must maintain the tender
Duration in months: 12 (from the date stated for receipt of tender)
Section six. Complementary information
six.1) Information about recurrence
This is a recurrent procurement: Yes
six.4) Procedures for review
six.4.1) Review body
High Court of England and Wales
7 The Rolls Building, Fetter Lane
London
E4A 1NL
Country
United Kingdom