Scope
Reference
99236
Description
Leeds City Council ("LCC") is seeking via this Procurement to appoint a Development & Funding Partner to develop the Leeds City Centre Heat Network ("the Network") under a Development Agreement ("DA"). The Network will be a large-scale, low carbon heat network serving the Leeds AZP Area ("the Project").
The Development & Funding Partner will enter into the DA with LCC to undertake development activities during the Development Period. The DA is based on the template "Golden Share Development Agreement" developed by DESNZ for the Advanced Zoning Programme ("AZP") and regulates the design and development of the Network up until the point at which the Project is approved, not approved or is deemed to be unviable at the Approvals Gateway.
If the Project successfully meets the Mandatory Requirements ("MRs") set out in the DA, the Development & Funding Partner has met its relevant obligations under the DA and LCC elects to approve the Project, LCC and the Development & Funding Partner will be required to enter into a Joint Venture Partnership via a Shareholders' Agreement ("SHA").
The SHA is based on the template "Golden Share Shareholders' Agreement" developed by DESNZ for the Advanced Zoning Programme and will govern the management of the Special Purpose Vehicle ("SPV") and impose obligations on delivery and operation of the Network.
The Development & Funding Partner will be responsible for further development activities, funding and delivering the Project under the SHA, as the Development & Funding Partner. LCC will hold a Golden Share under the SHA.
LCC (in its own right and via its wholly owned subsidiary) is the owner and operator of the Leeds PIPES heat network ("Leeds PIPES"). LCC may elect to offer to transfer Leeds PIPES to the SPV on a cash or equity basis after execution of the SHA and in accordance with the terms of the SHA. The following known risk has been identified as part of this procurement:
1. Future introduction of the Heat Network Zoning regulations and the appointment of the Zone Coordinator.
Contract 1. Leeds City Centre Heat Network
Supplier
Contract value
- £3,405,000,000 excluding VAT
- £4,086,000,000 including VAT
Above the relevant threshold
Award decision date
18 February 2026
Date assessment summaries were sent to tenderers
18 February 2026
Standstill period
- End: 27 February 2026
- 8 working days
Earliest date the contract will be signed
20 March 2026
Contract dates (estimated)
- 27 March 2026 to 31 March 2076
- 50 years, 5 days
Main procurement category
Works
CPV classifications
- 45211360 - Urban development construction work
- 45232140 - District-heating mains construction work
- 45232141 - Heating works
- 71314000 - Energy and related services
Contract locations
- UKE42 - Leeds
Information about tenders
- 2 tenders received
- 2 tenders assessed in the final stage:
- 1 submitted by small and medium-sized enterprises (SME)
- 0 submitted by voluntary, community and social enterprises (VCSE)
- 1 supplier awarded contracts
- 1 supplier unsuccessful (details included for contracts over £5 million)
Unsuccessful suppliers
Submission
Submission type
Tenders
Procedure
Procedure type
Competitive flexible procedure
Special regime
Concession
Suppliers
HEMIKO LIMITED
- Companies House: 08331646
- Public Procurement Organisation Number: PVTD-3884-HXGH
Castletown Office
Carlisle
CA6 4BN
United Kingdom
Email: bidding@hemiko.com
Website: http://www.hemiko.com
Region: UKD12 - East Cumbria
Small or medium-sized enterprise (SME): Yes
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. Leeds City Centre Heat Network
VITAL ENERGI UTILITIES LIMITED
- Companies House: 04050190
- Public Procurement Organisation Number: PRNH-3543-YBNX
Century House
Blackburn
BB1 2LD
United Kingdom
Website: http://www.vitalenergi.co.uk
Region: UKD41 - Blackburn with Darwen
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contracting authority
Leeds City Council
- Public Procurement Organisation Number: PJYG-6658-PPMY
Civic Hall, Calverley Street
Leeds
LS1 1UR
United Kingdom
Email: cpu@leeds.gov.uk
Website: http://www.leeds.gov.uk
Region: UKE42 - Leeds
Organisation type: Public authority - sub-central government
Other organisations
These organisations are carrying out the procurement, or part of it, on behalf of the contracting authorities.
OVE ARUP & PARTNERS LIMITED
Summary of their role in this procurement: Procurement support and advice
- Companies House: 01312453
- Public Procurement Organisation Number: PZJN-8211-DBBV
8 Fitzroy Street
London
W1T 4BJ
United Kingdom
Email: uk.procurement@arup.com
Website: http://www.arup.com
Region: UKI31 - Camden and City of London
ADDLESHAW GODDARD LLP
Summary of their role in this procurement: Legal support to the project
- Companies House: OC318149
- Public Procurement Organisation Number: PRWH-7564-XRYD
41 Lothbury
London
EC2R 7HG
United Kingdom
Email: bdtenders@addleshawgoddard.com
Website: http://www.addleshawgoddard.com/
Region: UKI31 - Camden and City of London
HERMETICA BLACK LIMITED
Summary of their role in this procurement: Technical Advice
- Companies House: 08548008
- Public Procurement Organisation Number: PNLC-8839-QVPH
118 Commercial Street
London
E1 6NF
United Kingdom
Email: accounts@hermeticablack.com
Website: https://hermeticablack.com/
Region: UKI42 - Tower Hamlets
ASTEROS ADVISERS LTD
Summary of their role in this procurement: Commercial
- Companies House: 11914766
- Public Procurement Organisation Number: PPZV-1662-HMLH
Unit 10 7 Wenlock Road
London
N1 7SL
United Kingdom
Email: enquiries@asteros.co.uk
Website: http://www.asteros.co.uk
Region: UKI41 - Hackney and Newham