Public procurement notice: Contract Notice
Published: 2020-07-31
Buyer: South Tees Development Corporation
Country: UK
Contract type: Services
Procedure: Competitive dialogue
CPV classification: 31682000 | 45231400 | 45232200 | 45232220 | 65300000: Electricity distribution and related services
Estimated value: 200000000 GBP
Submission deadline: 2020-08-28
Award criteria: The most economic tender

Technical requirements: STDC is undertaking a procurement (on behalf of itself, its subsidiaries and affiliates (both current and future), South Tees Site Company and Tees Valley Combined Authority) using the competitive dialogue procedure to select a strategic partner to to fund, develop, operate and maintain a high voltage electricity network across the South Tees site. The project will involve the creation of a 50:50 joint venture between a subsidiary of STDC and the strategic partner. The strategic partner shall underwrite all funding required to deliver electrical infrastructure across the site. As part of the project, STDC intends to also consider the option for an electricity retail service through the purchase of power from a licensed electricity supplier and the resale of that electricity to the site customers and the supply of electricity to South Tees Site Company.
Approximately 4 500 acres of land to the south of the River Tees in the Borough of Redcar and Cleveland including the former SSI steelworks site.
STDC is undertaking a procurement (on behalf of itself, its subsidiaries and affiliates (both current and future), South Tees Site Company and Tees Valley Combined Authority) using the competitive dialogue procedure to select a strategic partner to to fund, develop, operate and maintain a high voltage electricity network across the South Tees site. This includes all such ancillary and support works, goods and services as may be required to deliver the project. The project will involve the creation of a 50:50 joint venture between subsidiary of STDC and the strategic partner. The strategic partner shall underwrite all funding required to deliver electrical infrastructure across the site. It is anticipated that the infrastructure work will be delivered in 3 tranches, approximately GBP 3.5 million of work to be delivered urgently in early 2021, with an estimated additional GBP 35 million of work to be delivered over a subsequent initial phase and a further estimated GBP 35 million is anticipated over the remaining term of the joint venture. Further details on these works and the project structure more generally is contained in the procurement documents. As part of the project STDC also intends to consider the option for an electricity retail service through the purchase of power from a licensed electricity supplier and the resale of that electricity to the site customers and the supply of electricity to South Tees Site Company. The estimated value of the contract set out above does not include the value of this retail supply element at this stage.
SDTC reserve the right to extend the term of the joint venture for a period of up to 5 years beyond the initial 40-year term. Further detail will be contained in the procurement documents.
Bidders may be asked to actively participate in the achievement of social value and/or environmental policy objectives. Accordingly, contract conditions (including any relevant specifications) may relate in particular to social value and/or environmental considerations.
STDC intends that the shortlisted bidders will be invited for a site visit on or around the 16 September 2020. The date and arrangements will be confirmed in due course.
The total value of the various elements of the project is estimated to be between GBP 150 m and GBP 200 m. This range has been included here as Section II.1.5) and II.1.6) in the standard notice does not permit inclusion of a range.
The Utilities Contracts Regulations 2016 (‘Regulations’) provide aggrieved parties who have been harmed or are at risk of harm by a breach of the Regulations to take action in the High Court (England, Wales and Northern Ireland). The Regulations set out the requirements on information to be provided prior to award of the contract and the procedures to be followed for bringing proceedings for breaches or alleged breaches of the Regulations.


Award value: 200000000