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United Kingdom-Bristol: Energy and related services
Section I: Contracting authority/entity
Section II: Object
City Leap Energy Partnership
Bristol City Council is seeking to appoint a strategic partner to form a long term corporate joint venture with the Council, the City Leap Energy Partnership, to provide and secure low-carbon energy-related investment and expertise to deliver City Leap’s Strategic Objectives. The City Leap Energy Partnership will provide opportunities for the development, construction, and financing of low-carbon energy-related projects and delivery of associated services to assist with meeting Bristol’s carbon neutrality targets. It will also afford the opportunity to provide certain services (detailed below) to other public bodies in the South West region.
The procurement will be governed by Concession Contracts Regulations 2016 (including any amendments/variations /transitional provisions that apply to this procurement).
In May 2018, the Council released the City Leap Prospectus (http://www.energyservicebristol.co.uk/prospectus/) as part of a soft market testing exercise. 180 expressions of Interest were received in response to the prospectus from a wide range of organisations. Subsequently, an internal options appraisal was carried out by the Council which recommended establishing a joint venture company with a strategic partner (which could be a consortium of organisations). This recommendation was approved by the Council’s Cabinet on 2 April 2019. The terms of this approval were updated in subsequent Cabinet Reports (see links below to these reports).
The Council is seeking to procure a strategic partner to form a long-term joint venture with the Council, the City Leap Energy Partnership, in order to secure substantial low carbon infrastructure investment and delivery capability. As part of its role in the City Leap Energy Partnership, in addition to providing finance and investment for the City Leap opportunity, the strategic partner will be expected to provide commercial support and technical expertise to assist with the origination, development, facilitation and delivery of low carbon energy-related assets and services. It is anticipated that the origination and development services may also be provided to public bodies other than the Council across the South West region. The strategic partner will be willing to work in partnership with a broad range of organisations, including those working in Bristol’s community, energy and sustainability sectors and other public bodies, to facilitate the delivery of low carbon energy projects on a city-wide and, potentially, regional basis.
It is expected that the City Leap Energy Partnership will comprise a joint venture company between the strategic partner and the Council (JVCo). This structure (including any subsidiaries of the joint venture, formal corporate linkages, funding structures and governance arrangements) will be developed in conjunction with bidders during the tender process. The Council expects to play an active role in delivering City Leap, and anticipates this will include the potential contribution of certain low carbon energy-related assets, e.g. the Council’s heat network assets, and the provision of opportunities for the City Leap Energy Partnership to access the Council’s estate, e.g. land and buildings, for the purposes of delivering low carbon energy-related projects. Origination and development services will be able to be provided to other public bodies in the South West via a single supplier framework agreement entered into by Bristol City Council as contracting authority and the JVCo as supplier as part of this procurement. Further information on all aspects of the opportunities and services will be provided in the procurement documents. The document containing the list of the framework beneficiaries in part of the SQ stage documentation pack.
For the avoidance of doubt, it is anticipated that the procurement process will involve multiple stages, including negotiations, and the Council reserves the right to reduce the number of solutions discussed or tenders to be negotiated.The Council is using ‘ProContract’ (the Council’s procurement portal) to manage this procurement and to communicate with all participants. No hard copy documents will be issued. Bidders must ensure that the details of the point of contact nominated are accurate at all times as the Council will not be under any obligation to contact anyone other than the nominated person.
The Council reserves the right not to award a contract following this procurement process or to vary the scope of the opportunity or the procurement process at any stage.
Section III: Legal, economic, financial and technical information
Further detail to be provided in the procurement documents.
Section IV: Procedure
Section VI: Complementary information
Since 2005, Bristol City the Council has delivered a wide programme of energy efficiency and investment initiatives, investing tens of millions of pounds in renewable energy generation and energy efficiency. The Council is now moving forward with a number of innovative pilot projects that will help inform the build-out of the city’s future smart energy system. This, coupled with the city’s thriving community energy scene and a wealth of socially responsible organisations, are just some of the reasons why Bristol is internationally recognised as a leading energy city.
Building on all that Bristol has collectively achieved to date, the Council wishes to substantially increase the pace and scale of delivery of its low carbon energy infrastructure investment through City Leap to help Bristol deliver its carbon neutrality ambitions, and potentially those of other public bodies within the South West region.
City Leap aims to strategically develop, co-ordinate, facilitate, finance, and deliver a smart, low carbon, interconnected energy system that leverages the Council’s assets and expertise to deliver action at a city-wide and regional scale, resulting in clean, affordable energy for its people, communities and companies as well as securing the broad range of social, environmental and economic benefits for the City and potentially the South West region, that can be obtained from a transformed energy system.
The estimated values given at 11.1.5 and 11.2.6 are based on the potential estimated commercial revenues of anticipated projects and services to be developed under the City Leap Energy Partnership.
The ultimate revenues will depend on many factors, including (without limitation) the term of the contract, speed of project origination and delivery, ability of the Strategic Partner to deploy investment, market conditions and level of participation of other public bodies in the South West region. Bidders are advised to seek independent professional advice in relation to the potential value of the opportunity and the scheme as a whole.
The City Leap Cabinet Reports contain further information relating to the proposed City Leap Energy Partnership. Please note subsequent reports do amend the scope of the procurement approved. The Cabinet Reports can be accessed here:
Report dated 2 April 2019
Report dated 2 June 2020
Report dated 14 July 2020
Interested economic operators are invited to register their interest by completing and returning the selection questionnaire, which will be made available on ProContract under project DN484211 on or around the week commencing 3 August 2020. Qualifying respondents to the selection questionnaire will be asked to sign a non-disclosure agreement before being provided with further procurement documentation.
Note to bidders: due to the limitations imposed by the Coronavirus pandemic, the authority will not be holding a briefing event. Subject to the publication of the selection questionnaire in the week commencing 3 August 2020, a video, ‘Welcome to Bristol’s City Leap’, will be published online on or around the week commencing 17 August 2020. Interested economic operators, who are registered with ProContract, will be able to access this video via ProContract and will be able to ask clarification questions in accordance with the process set out in section 2.9 of the SQ Guidance. Instructions on how to access the video will be provided to interested economic operators via ProContract in due course.