RM4150 L0522; Financial Consultancy on Solar Power Provision on the Government Estate - Consultancy Value Statement

Tender description

This Contract has already been awarded. This notice is for the publication of the Consultancy Value Statement which indicates the financial and non-financial value which has been delivered from this Contract. The project aims to identify appropriate sites across government rooftop and brownfield site estate – which are otherwise under-utilised or have little alternative use – for solar generation to maximise returns for the government through reduction in energy costs for customers and rental payments. The purpose of the procurement is therefore to obtain financial advice to supplement the legal advice currently being sought for the setting up and operation of a government-owned solar development company (DevCo) and the subsequent sale of a majority stake to a joint venture partner, to be run as a call-off from the Consultancy One framework contract, under Lot 4.1 (Corporate Finance and Financial Strategy). The service will comprise two phases: the first (DevCo set up) will include validation of the financial model included in the Outline Business Case; financial modelling to assess project-specific economics; and benchmarking of commercial development fees and profit margins, payment flows, taxation, balance sheet treatment, State Aid considerations, CfD bidding tactics and funding options across the project lifecycle. Phase 2 will include assistance with the possible sale of DevCo to include soft market testing which will inform the development of a commercial structure and preparation of the financial model to be used; as well as assistance with evaluating bids and assessing options for a full exit, including contributing towards the preparation of the Final Business Case. The Supplier may also be required to advise on funding for individual projects in the transitional phase. Please note that there are separate publications for the tender documentation and contract award.