Public procurement notice: Prior Information Notice Without Call For Competition
Published: 2018-10-25
Buyer: Swansea Council
Country: UK
Contract type: Works
CPV classification: 45000000: Construction work | 45244000: Marine construction works | 45247200 | 45247210 | 45248000: Construction work for hydraulic structures
Estimated value: 1500000000 GBP

Technical requirements: 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.
Swansea — Neath Port Talbot waterfront adjacent to Fabian Way, just off the core UK road artery the M4, some 180 miles west of London.
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.
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.
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 3.12.2018 with the following information:
Estimated date of publication of contract notice is 2.9.2019 however this is subject to the response to the PIN.


Award value: 1500000000