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Development & Funding Partner to develop the Birkenhead Heat Network

Wirral Council

Buyer Contact Info

Buyer Name: Wirral Council

Buyer Address: Town Hall, Brighton Street, Wallasey, UKD74, CH44 8ED, United Kingdom

Contact Email: procurementcorporate@wirral.gov.uk

Buyer Name: CARBON TRUST ADVISORY LIMITED

Buyer Address: Level 5, Arbor, London, UKI44, SE1 9AX, United Kingdom

Contact Email: tenders@carbontrust.com

Show 1 more buyers

Buyer Name: WOMBLE BOND DICKINSON (UK) LLP

Buyer Address: 4 More London Riverside, London, UKI44, SE1 1AU, United Kingdom

Contact Email: richard.cockburn@wbd-uk.com

Status
active
Procedure
selective
Value
250000000.0 GBP
Gross: 300000000 GBP
Published
20 Jun 2025, 10:09
Deadline
n/a
Contract Start
n/a
Contract End
n/a
Category
services
CPV
09323000 - District heating
Region
n/a
Awarded To
n/a
Official Source
Open Find a Tender

Description

The project comprises development of a new heat network serving a mix of buildings including new build residential, existing residential, new build commercial and existing commercial. The project forms an integral part of Birkenhead 2040 Regeneration Framework; one of the biggest brownfield redevelopment sites in the UK. This regeneration of Birkenhead will take place across nine areas providing 21,000 new homes and almost 1,000,000 square metres of employment space over the next 20 years. The area to be served by the network has been identified as a 'priority district heating zone' in Wirral's Local Plan. It will make a significant contribution to reducing the carbon impact of new / existing development in the Borough and provide opportunities to residents and businesses for lower cost heating. The project is well-aligned with regional policy objectives and initiatives. It also fits into the Government's introduction of 'heat network zoning', which, through implementation, will mandate certain types of buildings in identified urban areas such as Birkenhead to connect to district heating within a prescribed timeframe. It is envisaged that, once heat networking zoning is in place, the Birkenhead Heat Network could benefit from zoning 'incumbency' rules - meaning that nearby eligible buildings will be mandated to connect, further securing demand. The project will be delivered through Wirral Council procuring a Development Partner. The Council and Development Partner will enter into a Development Agreement under which the Development Partner will further develop its proposals for the heat network. The Development Agreement will set out a number of requirements which the project must meet in order to proceed into an approvals gateway process. If the project proceeds beyond the development period (i.e. is "approved" as part of the approvals gateway process), the Council and Development Partner will become shareholders in the ESCo, albeit that the Council's shareholding will be limited to a "Golden Share". The ESCo will be the supplier of heat to a number of public and private sector bodies (including the Council) under separate heat connection and supply agreements. The Council will not be investing in the project. The Golden Share will simply allow the Council to exercise control in relation to a limited number of reserved matters including carbon intensity, reporting and tariffs. The ESCo will be required to source all capital funding for the project. The ESCo partner will be appointed in perpetuity. The revenue derived over the first 40 years of the network is estimated to be in the region of £200 million (excluding VAT) / £240 million (including VAT) - £250 million (excluding VAT) / £300 million (including VAT). This includes all phases and connected buildings in the core scheme and allowing for further expansion with the wider geographic area. The estimated value cannot be guaranteed and so should not be relied upon by interested parties which might subsequently choose to pursue this procurement. Any interested party should make their own independent commercial enquires, estimates, judgements and decisions associated with this project. As part of the operation and expansion of the project, a range of customers in the Birkenhead area may seek to use the heat network, including a mix of public sector and private sector entities. It is intended that this project will be available to those other entities. Those entities may include: Sixth form colleges Central government departments (responsible for local offices) Higher education organisations NHS Primary Care bodies

Linked Documents

No linked documents found for this notice.

Opportunity Context

More Information Links

External Link: https://www.find-tender.service.gov.uk/Notice/033995-2025

Link Description: Tender notice on Find a Tender

Lots

Lot 1 Status: active

Lot 1 Value: GBP 250,000,000

Lot 1 Value (Gross): GBP 300,000,000

Lot 1 Contract Start: 2026-04-01T00:00:00+01:00

Lot 1 Contract End: 2069-03-31T23:59:59Z

Lot 1 SME Suitable: Yes

Lot 1 Award Criterion (quality): Technical and Commercial (Qualitative)

Lot 1 Award Criterion (cost): Commercial (Quantitative)

Lot 1 Award Criterion (quality): Social Value and Market Transformation

Lot 1 Award Criterion (quality): Legal

Documents

Document Description: Not published

Document Description: Tender notice on Find a Tender

Raw Notice JSON

Expand raw payload
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    "description": "The project comprises development of a new heat network serving a mix of buildings including new build residential, existing residential, new build commercial and existing commercial.\nThe project forms an integral part of Birkenhead 2040 Regeneration Framework; one of the biggest brownfield redevelopment sites in the UK. This regeneration of Birkenhead will take place across nine areas providing 21,000 new homes and almost 1,000,000 square metres of employment space over the next 20 years.\nThe area to be served by the network has been identified as a \u0027priority district heating zone\u0027 in Wirral\u0027s Local Plan. It will make a significant contribution to reducing the carbon impact of new / existing development in the Borough and provide opportunities to residents and businesses for lower cost heating. The project is well-aligned with regional policy objectives and initiatives. It also fits into the Government\u0027s introduction of \u0027heat network zoning\u0027, which, through implementation, will mandate certain types of buildings in identified urban areas such as Birkenhead to connect to district heating within a prescribed timeframe.\nIt is envisaged that, once heat networking zoning is in place, the Birkenhead Heat Network could benefit from zoning \u0027incumbency\u0027 rules - meaning that nearby eligible buildings will be mandated to connect, further securing demand.\nThe project will be delivered through Wirral Council procuring a Development Partner. The Council and Development Partner will enter into a Development Agreement under which the Development Partner will further develop its proposals for the heat network. The Development Agreement will set out a number of requirements which the project must meet in order to proceed into an approvals gateway process. If the project proceeds beyond the development period (i.e. is \"approved\" as part of the approvals gateway process), the Council and Development Partner will become shareholders in the ESCo, albeit that the Council\u0027s shareholding will be limited to a \"Golden Share\".\nThe ESCo will be the supplier of heat to a number of public and private sector bodies (including the Council) under separate heat connection and supply agreements.\nThe Council will not be investing in the project. The Golden Share will simply allow the Council to exercise control in relation to a limited number of reserved matters including carbon intensity, reporting and tariffs.\nThe ESCo will be required to source all capital funding for the project. The ESCo partner will be appointed in perpetuity. The revenue derived over the first 40 years of the network is estimated to be in the region of \u00a3200 million (excluding VAT) / \u00a3240 million (including VAT) - \u00a3250 million (excluding VAT) / \u00a3300 million (including VAT). This includes all phases and connected buildings in the core scheme and allowing for further expansion with the wider geographic area. The estimated value cannot be guaranteed and so should not be relied upon by interested parties which might subsequently choose to pursue this procurement. Any interested party should make their own independent commercial enquires, estimates, judgements and decisions associated with this project.\nAs part of the operation and expansion of the project, a range of customers in the Birkenhead area may seek to use the heat network, including a mix of public sector and private sector entities. It is intended that this project will be available to those other entities. Those entities may include:\nSixth form colleges\nCentral government departments (responsible for local offices)\nHigher education organisations\nNHS Primary Care bodies",
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      "features": "This Competitive Flexible Procedure will be conducted in five (5) stages. The stages consist of:\nStage 1: Conditions of Participation\nStage 1 commenced with the issuing of this Tender Notice and the publication of the Invitation to Tender (ITT). \nThe ITT includes a Procurement Specific Questionnaire (\"PSQ\") at Appendix D: Procurement Specific Questionnaire which all Suppliers are required to complete and return in accordance with the Procurement Timetable and instructions within the ITT. \nWirral Council will undertake a review of the completed PSQ with reference to any information held on the Central Digital Platform. Responses to the Conditions of Participation will be assessed in accordance with Appendix D: Procurement Specific Questionnaire. Further details of this are set out in Section 13 (Conditions of Participation) of the ITT.\nThe assessment of these responses will identify up to three Suppliers to be invited to participate in Stage 2. The process for identifying the three Suppliers is set out in paragraphs 13.13 and 13.14 of the ITT, together with minimum score requirements in 13.12.\nStage 2: Interim Tender Response Phase (incorporating initial dialogue meetings)\nSuppliers shortlisted at Stage 1 will be invited to an initial meeting. The anticipated agenda for the initial meeting is as follows:\n(a)\t introduce the Promoter\u0027s Officers and commercial, legal and technical advisors;\n(b)\tmeet the Supplier\u0027s Team; and \n(c)\tto discuss/answer questions on the core elements of the scheme. \nFollowing the initial meeting, Suppliers will be required to submit an Interim Tender Response in accordance with the instructions set out in the ITT. The Interim Tender Response shall consist of a detailed mark-up of the Contract Documentation and a commentary table explaining the rationale of the mark-up. Interim Tender Responses will not be formally evaluated but verbal feedback will be provided to Suppliers during dialogue meetings.\nStage 3: Dialogue Meetings\nIt is expected that there will be two dialogue meetings with each Supplier. The purpose of the dialogue meetings is to discuss Suppliers\u0027 comments and proposed amendments to the draft Contractual Documentation. Further detail on the agenda for the dialogue meetings is set out in paragraph 7.3 of the ITT. \nIf required, a third dialogue meeting may be held with each Supplier. \nWirral Council may refine the award criteria in the ITT during or following dialogue meetings with Suppliers. If Wirral Council refines the award criteria, it will notify all Suppliers to any changes made to the award criteria when issuing the Invitation to Submit Final Tenders (ISFT).\nStage 4: Invitation to Submit a Final Tender Response\nSuppliers will be required to submit their Final Tender Response in accordance with the instructions set out in the ISFT.\nSuppliers must respond to all of the Technical, Commercial and Social Value questions set out in Appendix B: Award Criteria of the ITT. \nSuppliers\u0027 Final Tender Responses will be evaluated in accordance with the assessment methodology set out in Appendix C: Assessment Methodology of the ITT.\nWirral Council will conduct an assessment of all Final Tender Responses in order to identify the Supplier which has submitted the Most Advantageous Tender.\nStage 5: Preferred Supplier Stage\nFollowing conclusion of Stage 4, the Promoter will provide an assessment summary to all Suppliers that submitted Final Tender Responses to:\n\uf09f\tinform them whether they have been successful in the Procurement;\n\uf09f\tprovide an explanation of the assessment of the Supplier\u0027s tender against the relevant award criteria, in accordance with the requirements of the Act;\n\uf09f\twhere different to the Supplier concerned, provide information in respect of the Most Advantageous Tender submitted, including details of the assessment of this tender against the relevant award criteria and the Supplier\u0027s name; and\n\uf09f\tengage in further discussions with the Supplier who the Promoter considers to have the Most Advantageous Tender (the \"Preferred Supplier\") in order to finalise the Contractual Documentation, in accordance with the limitations set out in the Act.\nNotwithstanding the above, Suppliers should note that any further discussions held with the Preferred Supplier will be solely for the purpose of finalising the Contractual Documentation based on their Final Tender Response and will not be an opportunity for further negotiation."
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    "submissionMethodDetails": "How to obtain and submit documents:\nThe Council\u0027s uses The Chest e-tendering system https://www.the-chest.org.uk/ \nTender documentation is available free of charge via The Chest. Project Reference: DN776854.\nTender responses must be returned, and any clarifications/questions raised, through this same system.\nThe tender documentation contains full instructions for participation, full details of the Project opportunity, both selection and award criteria, and the procurement timeline and process. \nPlease allow sufficient time before the submission deadline to upload and submit your response through The Chest.\nHelp and Support - Proactis/The Chest: In the event that suppliers require assistance with the use of or access to the Council\u0027s e-tendering portal, please go to https://www.the-chest.org.uk/SupplierSupport.html. Here there will be a hyperlink to log issues or \u0027submit a ticket\u0027 for ProContract V3.\nAlternatively, calls can be logged by emailing ProContractSuppliers@proactis.com and a representative will contact you as soon as possible.\nFor critical and time-sensitive issues (normally requiring resolution within 60 minutes) then please call 0330 005 0352. This telephone number is attended 09.00 - 17.30 Monday to Friday.\nAll communication (queries or clarifications) including your tender response is to go through the Council\u0027s e-tendering portal www.the-chest.org.uk and not addressed directly to individual Council employees or any Council agent by email or otherwise.",
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    "title": "Development \u0026 Funding Partner to develop the Birkenhead Heat Network",
    "value": {
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      "amountGross": 300000000,
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}