Sunderland Central Heat Network

{
  "awards": [
    {
      "hasSubcontracting": true,
      "id": "002211-2026-1",
      "relatedLots": [
        "1"
      ],
      "status": "active",
      "subcontracting": {
        "description": "The Contracting Authority is aware the Contractor will be sub-contracting elements of the Contract during the lifetime of the Contract.  In respect to the commercialisation phase this is like to be design elements such as technical engineers, civils, mechanical and civil engineering. \nThe Contractor at construction stage will be procuring sub-contractors to construct  out the network and build out the energy centre, including appointing mechanical and electrical and heat pump  specialist contractors. \nThe exact percentage of the sub-contracting is therefore currently unknown"
      },
      "suppliers": [
        {
          "id": "GB-COH-11532815",
          "name": "1Energy Group Limited"
        }
      ],
      "title": "Sunderland Central Heat Network"
    }
  ],
  "bids": {
    "statistics": [
      {
        "id": "1",
        "measure": "bids",
        "relatedLot": "1",
        "value": 3
      },
      {
        "id": "2",
        "measure": "smeBids",
        "relatedLot": "1",
        "value": 0
      },
      {
        "id": "3",
        "measure": "electronicBids",
        "relatedLot": "1",
        "value": 3
      }
    ]
  },
  "buyer": {
    "id": "GB-FTS-139398",
    "name": "Sunderland City Council"
  },
  "contracts": [
    {
      "awardID": "002211-2026-1",
      "dateSigned": "2025-12-04T00:00:00Z",
      "id": "002211-2026-1",
      "status": "active",
      "title": "Sunderland Central Heat Network",
      "value": {
        "amount": 130000000,
        "currency": "GBP"
      }
    }
  ],
  "date": "2026-01-12T11:45:04Z",
  "description": "The JDA approach is effectively a form of two stage procurement. Following conclusion of the procurement process the Council and the ESCO will enter into the JDA. Following conclusion of the commercialisation phase (and subject to a final investment decision being approved by both parties) the Council and the ESCO will enter into the PGA and connection and supply agreements and the ESCO will enter into the connection and supply agreements with the other anchor load customers.\nThe procurement has been structured so as to ensure that the Council and other public sector customers identified as the anchor load customers are able to enter into the delivery contracts without a further procurement process being undertaken.\nThe proposal is for the network to provide low carbon heat to a number of customers in the Sunderland City Centre area which shall initially include:-\n-\tSouth Tyneside and Sunderland NHS Foundation Trust in relation to Sunderland Royal\nHospital and, potentially, a number of other buildings owned and occupied by the Trust;\n-\tUniversity of Sunderland in relation to a number of buildings on the University\u0027s City Campus;\n-\tGentoo Group Limited in relation to a number of social housing blocks in the City;\n-\tthe Council in relation to Sunderland City Hall; and\n-\tother un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland, with the intention for further expansion of the network in the future.\nFor the purposes of Section II.2.7 (Duration), it is mandatory to enter a figure for contract duration in the template for this notice. The term of 40 years (480 months) has been inserted as this was one of the factors used to calculate the estimated contract value (as set out above). However, as set out in Section II.2.4, the duration of the Project is not time limited, subject to complying with the relevant project documents.\nThe value provided in Section II.2.6 represents the Council\u0027s estimate of the total value of the contract opportunity based on information available and Council assumptions relating to the Core Scheme over a period of 40 years with additional connections and expansion opportunities.\nThe Selection Questionnaire documents are available for access free of charge (subject to the potential bidder signing and returning a Confidentiality Agreement).",
  "id": "002211-2026",
  "initiationType": "tender",
  "language": "en",
  "ocid": "ocds-h6vhtk-044acd",
  "parties": [
    {
      "address": {
        "countryName": "United Kingdom",
        "locality": "Sunderland",
        "postalCode": "SR13AA",
        "region": "UKC23",
        "streetAddress": "City Hall, Plater Way,"
      },
      "contactPoint": {
        "email": "chris.cummings@sunderland.gov.uk",
        "name": "Chris Cummings",
        "telephone": "+44 1915612377"
      },
      "details": {
        "classifications": [
          {
            "description": "Regional or local authority",
            "id": "REGIONAL_AUTHORITY",
            "scheme": "TED_CA_TYPE"
          },
          {
            "description": "General public services",
            "id": "01",
            "scheme": "COFOG"
          }
        ],
        "url": "http://www.sunderland.gov.uk/"
      },
      "id": "GB-FTS-139398",
      "identifier": {
        "legalName": "Sunderland City Council",
        "noIdentifierRationale": "notOnAnyRegister"
      },
      "name": "Sunderland City Council",
      "roles": [
        "buyer"
      ]
    },
    {
      "address": {
        "countryName": "United Kingdom",
        "locality": "Leeds",
        "postalCode": "LS1 5AB",
        "region": "UK",
        "streetAddress": "C/O Pinsent Masons Llp, 1 Park Row"
      },
      "details": {
        "scale": "large",
        "url": "https://1energy.uk/"
      },
      "id": "GB-COH-11532815",
      "identifier": {
        "id": "11532815",
        "legalName": "1Energy Group Limited",
        "scheme": "GB-COH"
      },
      "name": "1Energy Group Limited",
      "roles": [
        "supplier"
      ]
    },
    {
      "address": {
        "countryName": "United Kingdom",
        "locality": "London",
        "postalCode": "EC4A 1NL",
        "streetAddress": "7 The Rolls Building, Fetter Lane"
      },
      "id": "GB-FTS-93679",
      "identifier": {
        "legalName": "High Court of England \u0026 Wales"
      },
      "name": "High Court of England \u0026 Wales",
      "roles": [
        "reviewBody"
      ]
    }
  ],
  "tag": [
    "award",
    "contract"
  ],
  "tender": {
    "classification": {
      "description": "Public utilities",
      "id": "65000000",
      "scheme": "CPV"
    },
    "description": "Sunderland City Council (the \"Council\") is seeking interest and proposals from suitable economic operators to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers through an innovative contractual structure.\nFollowing completion of the procurement process, the Council will enter into a joint development agreement (\"JDA\") with the selected bidder (\"ESCO\") under which the Council and the ESCO will work in partnership throughout the commercialisation phase of the project.\nOn completion of the commercialisation phase and a final investment decision having been approved by both parties, the project will move to the delivery stage and the Council proposes to enter into the \"Delivery Contracts\" for the project including:-\n-\tthe project governance agreement (\"PGA\"), which shall govern the rights and relationship between the Council and the ESCO in delivering the project;\n-\tthe connection and supply agreements for the anchor load properties (see below); and\n-\tany other relevant legal documents agreed during the commercialisation phase.\nThis procurement includes the opportunity to provide heat to the initial anchor load customers which includes South Tyneside and Sunderland NHS Foundation Trust, University of Sunderland, Gentoo, the Council, and other un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland.",
    "id": "ocds-h6vhtk-044acd",
    "items": [
      {
        "additionalClassifications": [
          {
            "description": "District heating",
            "id": "09323000",
            "scheme": "CPV"
          },
          {
            "description": "Construction work",
            "id": "45000000",
            "scheme": "CPV"
          }
        ],
        "deliveryAddresses": [
          {
            "region": "UKC23"
          }
        ],
        "deliveryLocation": {
          "description": "Sunderland Central"
        },
        "id": "1",
        "relatedLot": "1"
      }
    ],
    "legalBasis": {
      "id": "32014L0024",
      "scheme": "CELEX"
    },
    "lots": [
      {
        "awardCriteria": {
          "criteria": [
            {
              "description": "50",
              "name": "Technical",
              "type": "quality"
            },
            {
              "description": "10",
              "name": "Social Value",
              "type": "quality"
            },
            {
              "description": "10",
              "name": "Legal",
              "type": "quality"
            },
            {
              "description": "30",
              "name": "Financial",
              "type": "cost"
            }
          ]
        },
        "description": "Sunderland City Council (the \"Council\") is seeking interest and proposals from suitable economic operators to take forward the delivery of a large-scale heat network in the Sunderland City Centre area to serve a number of municipal, commercial and residential customers (the \"Project\") through an innovative contractual structure.\nFollowing completion of the procurement process, the Council will enter into a joint development agreement (\"JDA\") with the selected bidder (\"ESCO\") under which the ESCO will be provided with a 12 month exclusivity period to work with the Council in partnership to carry out the commercialisation of the project.\nThe JDA will govern the terms upon which the Council and the ESCO will work together to (amongst other things): (a) finalise the connection and supply agreements for the anchor load customers and any other legal documents required for the delivery stage; (b) develop the reference design for the first phase of the network into a construction-ready design; (c) secure the necessary consents and land rights required to deliver the Project; (d) develop the financial model for the Project; (e) arrange the finance for the core scheme; (f) procure the supply chain; and (g) incorporate a special purpose vehicle (\"SPV\") to act as the Project delivery vehicle.\nOn completion of the commercialisation phase and a final investment decision having been approved by both parties, the project will move to the delivery stage and the Council proposes to enter into the \"Delivery Contracts\" for the project including:-\n-\tthe project governance agreement (\"PGA\"), which shall govern the rights and relationship between the Council and the ESCO in delivering the Project (see below);\n-\tthe connection and supply agreements for the anchor load properties (see below); and\n-\tany other relevant legal documents agreed during the commercialisation phase.\nThis procurement includes the opportunity to provide heat to the initial anchor load customers which includes:-\n-\tSouth Tyneside and Sunderland NHS Foundation Trust in relation to Sunderland Royal\nHospital and, potentially, a number of other buildings owned and occupied by the Trust;\n-\tUniversity of Sunderland in relation to a number of buildings on the University\u0027s City Campus;\n-\tGentoo Group Limited in relation to a number of social housing blocks in the City;\n-\tthe Council in relation to Sunderland City Hall; and\n-\tother un-named Public Sector Contracting Authorities within the administrative boundary of The City of Sunderland, with the intention for further expansion of the network in the future.\nThe forms of connection and supply agreements with each anchor load customer will be agreed between the ESCO and anchor load customers during the commercialisation phase based on the principles document provided as part of this procurement.\nThe Council and the ESCO will also agree the terms of the (\"PGA\") during the commercialisation phase based on the principles document provided as part of this procurement. The PGA is intended to be a perpetual arrangement with the ESCO taking ownership and full risk in relation to the network. The PGA will include obligations on the ESCO in relation to the delivery of the works, customer service standards, transparent pricing which does not exceed a counterfactual, carbon reduction/growth targets and reporting requirements.\nPotential bidders should note that the Council (and the other named public-sector anchor load customers set out above) intend to enter into the relevant Delivery Contracts with the ESCO following completion of the commercialisation phase under the JDA without a separate procurement being undertaken. However, if a final investment decision is not achieved in accordance with the JDA the Council reserves the right to conduct a new procurement process for another ESCO for the Project and enter into the Delivery Contracts with the successful bidder in that procurement process.\nFurther detail on the background and structure of the Project is set out in the procurement documents.",
        "hasOptions": false,
        "id": "1",
        "status": "cancelled"
      }
    ],
    "mainProcurementCategory": "services",
    "procurementMethod": "selective",
    "procurementMethodDetails": "Competitive dialogue",
    "status": "complete",
    "title": "Sunderland Central Heat Network"
  }
}