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01 Prior Information Notice (PIN)

Swansea - Tidal Lagoon and Real Estate / Property Development

  • First published: 25 October 2018
  • Last modified: 25 October 2018

Contents

Summary

OCID:
ocds-kuma6s-085828
Published by:
City & County of Swansea
Authority ID:
AA0254
Publication date:
25 October 2018
Deadline date:
-
Notice type:
01 Prior Information Notice (PIN)
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
No

Abstract

The concept of a Swansea Bay tidal lagoon has been developed over recent years demonstrating its engineering feasibility, contribution to decarbonisation of energy production and economic development based upon the creation of new industrial capabilities. In parallel the realisation of a City Deal for the Swansea Bay City Region (involving key public sector partners with the Welsh and UK Governments) has created a joint approach for major infrastructure initiatives, including an ‘Internet of Energy’. It is intended to build upon the initial designs, but to promote a re-formatting of the lagoon project to enable delivery by a private sector partner and to work with Swansea and the City Region to create a new stand-alone and independently financed multi-asset class development with the lagoon as its centrepiece. The project will involve a strategic review of the overall project, design work; development of business plans; securing of necessary investment, construction and operation. CPV: 45251100, 45000000, 45251000, 65410000, 45247200, 45248000, 71000000, 71311300, 45247210, 71322400, 45244000, 66100000, 65310000, 66122000, 70112000, 70111000.

Full notice text

Prior information notice

This notice is for prior information only

Section I: Contracting authority

I.1) Name and addresses

Swansea Council

Civic Centre

Swansea

SA1 3SN

UK

Contact person: Sara Gibbons, Commercial Services

Telephone: +44 7814108287

E-mail: Sara.gibbons@swansea.gov.uk

NUTS: UKL18

Internet address(es)

Main address: http://www.swansea.gov.uk

Address of the buyer profile: https://www.sell2wales.gov.wales/search/Search_AuthProfile.aspx?ID=AA0254

I.2) Joint procurement

The contract is awarded by a central purchasing body

I.3) Communication

Additional information can be obtained from the abovementioned address


I.4) Type of the contracting authority

Regional or local authority

I.5) Main activity

General public services

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Swansea - Tidal Lagoon and Real Estate / Property Development

II.1.2) Main CPV code

45251100

 

II.1.3) Type of contract

Works

II.1.4) Short description

The concept of a Swansea Bay tidal lagoon has been developed over recent years demonstrating its engineering feasibility, contribution to decarbonisation of energy production and economic development based upon the creation of new industrial capabilities. In parallel the realisation of a City Deal for the Swansea Bay City Region (involving key public sector partners with the Welsh and UK Governments) has created a joint approach for major infrastructure initiatives, including an ‘Internet of Energy’. It is intended to build upon the initial designs, but to promote a re-formatting of the lagoon project to enable delivery by a private sector partner and to work with Swansea and the City Region to create a new stand-alone and independently financed multi-asset class development with the lagoon as its centrepiece. The project will involve a strategic review of the overall project, design work; development of business plans; securing of necessary investment, construction and operation.

II.1.5) Estimated total value

Value excluding VAT: 1 500 000 000.00  GBP

II.1.6) Information about lots

This contract is divided into lots: No

II.2) Description

II.2.2) Additional CPV code(s)

45000000

45251000

65410000

45247200

45248000

71000000

71311300

45247210

71322400

45244000

66100000

65310000

66122000

70112000

70111000

II.2.3) Place of performance

NUTS code:

UKL14


Main site or place of performance:

Swansea - Neath Port Talbot waterfront adjacent to Fabian Way, just off the core UK road artery the M4, some 180 miles west of London.

II.2.4) Description of the procurement

Swansea Council – working in partnership with the Swansea Bay City Region - wishes to find a partner or partners (corporates or consortia), with whom it will undertake the delivery of the Swansea Bay tidal lagoon development. The project could be structured as a partner development arrangement or through a joint venture.

If a joint venture structure is adopted, this could take the form of a contractual joint venture arrangement or involve the creation of a joint venture vehicle.

Swansea is considering the most appropriate structure for this project and proposals for the most effective structure are welcomed as part of the market sounding exercise.

The core aspirations for the project, and its delivery partner(s) are as follows:

To review and evaluate commercial proposals to deliver a re-formatted Lagoon 2.0 project, to encompass such additional elements that may be necessary to secure the necessary finance to deliver the initial capital and operational costs to construct, maintain and operate the facility. Real estate and property development, data centre infrastructure, solar power, manufacturing plants and marine and fisheries may all play a part in the wider development plans for which the Lagoon is a catalyst and energy provider.

For the avoidance of doubt, the fundamental requirement of this project is to be ‘stand alone’, requiring no form of subsidy. However the Welsh Government has indicated that it is prepared to consider significant co-investment alongside a private sector institutional partner/investor, subject to appropriate private sector led financial structure and terms being agreed and due diligence. This significant commitment by the Welsh Government highlights the strong public sector support for delivering lagoon technology this project in Wales. The Local Authorities of the Swansea Bay City Region will in addition establish a working group to investigate the possibility of public sector electricity supply contracts being agreed directly with the project.

The partner or partners (corporates or consortia), will be required to

conclude the detailed planning, design and licencing, obtain all appropriate permissions and secure funding for realisation of the Lagoon Development. This includes conclusion of a deliverable, robust and value for money business and project plans agreeable to all stakeholders.

conclude commercial arrangements with funding partners, potential energy customers and other stakeholders to support delivery of the business plan.

deliver the Lagoon construction, including its infrastructure for energy generation and distribution, managing effectively all project risks.

Swansea Council welcomes proposals for the delivery of these core aspirations as part of the market sounding exercise.

Swansea Council welcomes comment on these proposals and/or alternative proposals as part of the market-sounding exercise and, in particular, as to whether its aspirations are achievable and the opportunities presented by the project attractive to the market.

Swansea Council is seeking expressions of interest from suitably experienced partner or partners (corporates or consortia). It is intended for the partner or partners (corporates or consortia), to demonstrate that they have a suitable track record, capability, and financial standing to lead the project through from concept to operational completion.

Any organisation wishing to consider submitting an expression of interest will need to email sara.gibbons@swansea.gov.uk no later than 3rd December 2018 with the following information:

Last financial statement and credit rating

Previous projects - delivery of major capital projects (1BN GBP+ value)

Brochure providing an overview of the interested party.

II.2.14) Additional information

Estimated date of publication of contract notice is

02/09/2019 however this is subject to the response to the PIN

II.3) Estimated date of publication of contract notice:

02/09/2019

Section IV: Procedure

IV.1) Description

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

Section VI: Complementary information

VI.3) Additional information

Tidal Lagoon 2.0 provides a once in a generation opportunity to deliver a major strategic asset and a core part of the region’s economic and social infrastructure.

The project is envisaged to become a focus for the wider economic benefit to the City region. This will result from, but not be limited to the economic benefits stemming from construction and operation of the facilities, as well as the capabilities developed through the wider supply-chain initiatives and further regional sector activity.

It is envisaged that the project will involve strategic review of commercial deliverability, completion of design work; development of business and project plans; securing of necessary investment; establishment of key commercial arrangements; construction and commissioning; and operation of the facilities.

It is intended to build upon the initial designs and development solutions, and reference is therefore made to the existing Development Consent Order (as awarded to Tidal Lagoon (Swansea Bay) Plc in 2015). However it is proposed to consider any alternative proposals for the re-formatting of the project to enable delivery by a private sector partner and to work with Swansea Council to re-format the legacy project, to create a stand-alone independently financed multi asset class development. It is anticipated that access to the relevant technical and other specifications associated with the existing Development Consent Order will be facilitated.

The publication of this Prior Information Notice is for information gathering purposes only at this stage and forms part of the market testing initiative. Expressions of interest received will not be scored and will NOT form part of an evaluation process. Tender procedures and documents will be finalised following supplier feedback and issued thereafter.

This exercise will not be used for the purposes of short-listing at a later stage and non-participation will not restrict access to any tender opportunity that might follow from this exercise.

Swansea Council reserves the final right to follow what it considers to be the most appropriate approach to market and will not meet any costs incurred by any party in responding to this exercise. Having considered all representations Swansea Council reserves the right to package the requirement in such a way as to offer the most cost effective, sustainable solution.

NOTE: To register your interest in this notice and obtain any additional information please visit the Sell2Wales Web Site at https://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=85828.

(WA Ref:85828)

VI.5) Date of dispatch of this notice

22/10/2018

Coding

Commodity categories

ID Title Parent category
71000000 Architectural, construction, engineering and inspection services Construction and Real Estate
66100000 Banking and investment services Financial and insurance services
45000000 Construction work Construction and Real Estate
45247200 Construction work for dams and similar fixed structures Construction work for dams, canals, irrigation channels and aqueducts
45248000 Construction work for hydro-mechanical structures Construction work for water projects
45251100 Construction work for power plant Construction works for power plants and heating plants
45251000 Construction works for power plants and heating plants Construction works for plants, mining and manufacturing and for buildings relating to the oil and gas industry
66122000 Corporate finance and venture capital services Investment banking services and related services
45247210 Dam construction work Construction work for dams, canals, irrigation channels and aqueducts
71322400 Dam-design services Engineering design services for the construction of civil engineering works
70112000 Development of non-residential real estate Development services of real estate
70111000 Development of residential real estate Development services of real estate
65310000 Electricity distribution Electricity distribution and related services
71311300 Infrastructure works consultancy services Civil engineering consultancy services
45244000 Marine construction works Construction work for water projects
65410000 Operation of a power plant Other sources of energy supplies and distribution

Delivery locations

ID Description
1018 Swansea

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
Sara.gibbons@swansea.gov.uk
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
30/11/2018 15:40
Extension of Time
The closing date for expressions of interest has been extended to Friday 7th December 2018


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