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.
The indicative procurement dates for this opportunity are:
29/07/2025 - Deadline for clarification questions submitted (Enquiry Deadline)
22/08/2025 - Deadline for receipt of PSQ Response (Tender Submission Deadline)
17/10/2025 - Deadline for receipt of Interim Tender Responses
19/12/2025 - Deadline for receipt of Final Tender Responses
13/03/2025 - Assessment summaries & Contract Award Notice issued
03/04/2025 - Contract signature (Contract Start Date)
Total value (estimated)
- £3,405,000,000 excluding VAT
- £4,086,000,000 including VAT
Above the relevant threshold
Contract dates (estimated)
- 1 March 2026 to 29 February 2076
- 50 years
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
Submission
Enquiry deadline
29 July 2025, 12:00pm
Submission type
Tenders
Tender submission deadline
17 October 2025, 12:00pm
Submission address and any special instructions
Bids must be submitted to the website https://yortender.eu-supply.com/login.asp?B=YORTENDER using the contract refence number 99236, as outlined in the tender documentation.
The indicative procurement dates for this opportunity are:
29/07/2025 - Deadline for clarification questions submitted (Enquiry Deadline)
22/08/2025 - Deadline for receipt of PSQ Response (Tender Submission Deadline)
17/10/2025 - Deadline for receipt of Interim Tender Responses
19/12/2025 - Deadline for receipt of Final Tender Responses
13/03/2025 - Assessment summaries & Contract Award Notice issued
03/04/2025 - Contract signature (Contract Start Date)
Tenders may be submitted electronically
Yes
Languages that may be used for submission
English
Award decision date (estimated)
13 February 2026
Award criteria
| Name | Description | Type | Weighting |
|---|---|---|---|
| Technical | Technical quality questions |
Quality | 75% |
| Commercial | Commercial |
Price | 15% |
| Social Value | Social Value question and targets |
Quality | 10% |
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Competitive flexible procedure
Special regime
Concession
Competitive flexible procedure description
This Competitive Flexible Procedure will be conducted in five (5) stages.
a. Stage 1: Conditions of Participation - issuing this Tender notice and a Procurement Specific Questionnaire, which includes the Conditions of Participation.
b. Stage 2: Interim Tender Response Phase - suppliers who have been successfully shortlisted at Stage 1 will be invited to submit an Interim Tender Response. This will be limited to a legal response on the Contract Documents.
c. Stage 3: Dialogue Meetings - Following receipt of the Interim Tender Responses, dialogue meeting(s) will be held with each Supplier to discuss their responses in Stage 2.
d. Stage 4: Invitation to Submit a Final Tender Response - Stage 4 will commence with LCC providing any documents which have been updated following Stage 3, and inviting suppliers to respond to the Technical, Commercial and Social Value questions.
e. Stage 5: Preferred Supplier Stage - LCC will provide an assessment summary to all Suppliers that submitted Final Tender Responses. LCC will clarify commitments with the Supplier who LCC considers has the Most Advantageous Tender in order to finalise the Contractual Documentation. During this stage LCC will not negotiate substantive terms post final tender evaluation and award, only using this stage to clarify and confirm commitments made in the tender negotiation. This will ensure a confirmed understanding of how the contract will operate and reducing the risk of issues arising once the contract has been entered into.
The conditions of participation used in Stage 1 will include:
• Financial Capacity
• Insurance
• Data Protection
• Legal Capacity
• Technical Ability (relevant experience and case study examples)
• Health and Safety
• Requirement under section 73 of the Act
• Tackling Modern Slavery in Supply Chains
Justification for not publishing a preliminary market engagement notice
The preliminary market engagement notice was published.
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
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
Milton Gate
London
EC1Y 4AG
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
Region: UKI41 - Hackney and Newham