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Procurement of the Development Agreement Related to a Low Carbon Heat Network in the Square Mile

The Mayor and Commonalty and Citizens of the City of London

Buyer Contact Info

Buyer Name: The Mayor and Commonalty and Citizens of the City of London

Buyer Address: PO Box 270, City of London, UKI43, EC2P 2EJ, United Kingdom

Contact Email: robert.pine@cityoflondon.gov.uk

Buyer Name: OVE ARUP & PARTNERS LIMITED

Buyer Address: 8 Fitzroy Street, London, UKI31, W1T 4BJ, United Kingdom

Contact Email: uk.procurement@arup.com

Show 2 more buyers

Buyer Name: SHARPE PRITCHARD LLP

Buyer Address: Elm Yard, 13-16 Elm St, London, UKI31, WC1X 0BL, United Kingdom

Contact Email: tenders@sharpepritchard.co.uk

Buyer Name: LOCAL PARTNERSHIPS LLP

Buyer Address: 18 Smith Square, London, UKI32, SW1P 3HZ, United Kingdom

Contact Email: LPenquiries@localpartnerships.gov.uk

Status
active
Procedure
open
Value
4342000000.0 GBP
Gross: 5210400000.0 GBP
Published
16 Dec 2025, 12:53
Deadline
26 Jan 2026, 12:00
Contract Start
n/a
Contract End
n/a
Category
works
CPV
45211360 - Urban development construction work
Region
n/a
Awarded To
n/a
Official Source
Open Find a Tender

Description

City of London Corporation (“CoLC”) is seeking via this Procurement to select a Heat Network Development Partner to develop the Network and, subject to receipt of the necessary approvals, deliver the Network. It is intended that, as a result of this Procurement, CoLC will enter into a development agreement under which the Heat Network Development Partner (via the special purpose vehicle (the “SPV”) established for development and delivery of the Network) is required to design and develop the Network up until the point at which it is ready to be built, at which point, it will present the project for approval by CoLC. Provided that the project passes this “Approvals Gateway”, CoLC and the Heat Network Development Partner will be required to enter into the Shareholders’ Agreement which will govern the management of the SPV and impose obligations on delivery and operation of the Network. CoLC invests no capital in the SPV and derives no economic benefit as a Shareholder but, holds a “special” or “golden” share in the SPV which allows it certain rights as set out in more detail in the Contractual Documentation. The geographical area for the development and delivery of the Network is bounded by: a) the City of London boundary with Westminster, Camden, and Islington; b) roads including Moorgate, Princes Street, King William Street, and London Bridge; and c) the River Thames. The indicative procurement dates for this opportunity are: 12/01/2026 - Deadline for initial clarification questions submitted (Enquiry Deadline) 26/01/2026 - Deadline for receipt of PSQ Response (Tender Submission Deadline) 23/03/2026 - Deadline for receipt of Interim Tender Responses 22/06/2026 - Deadline for receipt of Final Tender Responses 05/11/2026 - Assessment summaries & Contract Award Notice issued 26/11/2026 - Contract signature (Contract Start Date)

Linked Documents

No linked documents found for this notice.

Opportunity Context

More Information Links

External Link: https://www.find-tender.service.gov.uk/Notice/083343-2025

Link Description: Tender notice on Find a Tender

Lots

Lot 1 Status: active

Lot 1 Value: GBP 4,342,000,000.00

Lot 1 Value (Gross): GBP 5,210,400,000.00

Lot 1 Contract Start: 2026-11-26T00:00:00+00:00

Lot 1 Contract End: 2068-08-31T23:59:59+01:00

Lot 1 Award Criterion (quality): Technical (50%)

Lot 1 Award Criterion (price): Commercial (40%)

Lot 1 Award Criterion (quality): Social Value (10%)

Documents

Document Description: Not published

Document Description: Tender notice on Find a Tender

Raw Notice JSON

Expand raw payload
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    "description": "City of London Corporation (\u201cCoLC\u201d) is seeking via this Procurement to select a Heat Network Development Partner to develop the Network and, subject to receipt of the necessary approvals, deliver the Network. \nIt is intended that, as a result of this Procurement, CoLC will enter into a development agreement under which the Heat Network Development Partner (via the special purpose vehicle (the \u201cSPV\u201d) established for development and delivery of the Network) is required to design and develop the Network up until the point at which it is ready to be built, at which point, it will present the project for approval by CoLC. \nProvided that the project passes this \u201cApprovals Gateway\u201d, CoLC and the Heat Network Development Partner will be required to enter into the Shareholders\u2019 Agreement which will govern the management of the SPV and impose obligations on delivery and operation of the Network. CoLC invests no capital in the SPV and derives no economic benefit as a Shareholder but, holds a \u201cspecial\u201d or \u201cgolden\u201d share in the SPV which allows it certain rights as set out in more detail in the Contractual Documentation.\nThe geographical area for the development and delivery of the Network is bounded by:\na) the City of London boundary with Westminster, Camden, and Islington; \nb) roads including Moorgate, Princes Street, King William Street, and London Bridge; and\nc) the River Thames.\nThe indicative procurement dates for this opportunity are:\n12/01/2026 - Deadline for initial clarification questions submitted (Enquiry Deadline) \n26/01/2026 - Deadline for receipt of PSQ Response (Tender Submission Deadline) \n23/03/2026 - Deadline for receipt of Interim Tender Responses\n22/06/2026 - Deadline for receipt of Final Tender Responses \n05/11/2026 - Assessment summaries \u0026 Contract Award Notice issued \n26/11/2026 - Contract signature (Contract Start Date)",
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      "features": "This Competitive Flexible Procedure will be conducted in five (5) stages.\na.\tStage 1: Conditions of Participation - issuing this Tender notice and a Procurement Specific Questionnaire, which includes the Conditions of Participation.\nb.\tStage 2: Interim Tender Response Phase - suppliers who have been successfully shortlisted at Stage 1 will be invited to submit an Interim Tender Response. This will be limited to a legal response on the Contract Documents. However, technical issues can be raised to the extent that they relate to contractual risks.\nc.\tStage 3: Dialogue Meetings - Following receipt of the Interim Tender Responses, dialogue meeting(s) will be held with each Supplier to discuss their responses in Stage 2.\nd.\tStage 4: Invitation to Submit a Final Tender Response - Stage 4 will commence with CoLC providing any documents which have been updated following Stage 3, and inviting suppliers to respond to the Technical, Commercial and Social Value questions.\ne.\tStage 5: Preferred Supplier Stage - CoLC will provide an assessment summary to all Suppliers that submitted Final Tender Responses. CoLC will clarify commitments with the Supplier who CoLC considers has the Most Advantageous Tender in order to finalise the Contractual Documentation. During this stage CoLC will not negotiate substantive terms post final tender evaluation and award, only using this stage to clarify and confirm commitments made in the tender negotiation. This will ensure a confirmed understanding of how the contract will operate and reducing the risk of issues arising once the contract has been entered into.\nThe conditions of participation used in Stage 1 will include:\n\u2022\tEconomic Financial Standing\n\u2022\tInsurance\n\u2022\tTechnical Ability (relevant experience and case study examples)\n\u2022\tData Protection\n\u2022\tHealth \u0026 Safety\n\u2022\tBusiness Continuity\n\u2022\tRequirement under Section 73 in the Act\n\u2022\tModern Slavery Act 2015\n\u2022\tClimate Action Strategy (not scored)\n\u2022\tWork Related Road Risk\n\u2022\tLiving Wage\n\u2022\tSupplier Diversity Monitoring Form (not scored)\nCoLC has included in section 10 of the Invitation to Tender a number of known risks, as defined in Schedule 1, paragraph 5(b) of the Procurement Act 2023. In the event any of the above-mentioned known risks materialise, CoLC reserves the right to modify the Contractual Documentation in accordance with section 74 of the Procurement Act 2023.\nCoLC reserves their right under section 24 of the Procurement Act 2023 to refine award criteria before the invitation of final tenders."
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    "title": "Procurement of the Development Agreement Related to a Low Carbon Heat Network in the Square Mile",
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