Banking and investment services

Tender description

United Utilities Water Ltd (UU) proposes to deliver a scheme providing long-term water supply resilience to Manchester and the Pennines using the DPC approach. DPC has the potential to benefit customers by providing an option for delivering the largest and most expensive new assets at lower cost, and allows scope for greater innovation, allowing new providers to bring new ideas. Further information regarding DPC can be accessed via the following link: https://www.ofwat.gov.uk/publication/delivering-water-2020-final-methodology-2019-price-review-appendix-9-direct-procurement-customers/ Following a successful procurement process conducted by UU in accordance with the Utilities Contracts Regulations 2016 (UCR), UU would select the preferred tenderer i.e. Competitively Appointed Provider (CAP). UU’s current understanding regarding the role of the CAP, is that it will likely include: — detailed design of the project, — construction of the project, — financing of the project, — ownership of the asset(s) once constructed. The current assumption is that the CAP will earn revenues on this asset over the term of the contract, which will be c.25 years. However, it should be noted that the exact length of the arrangement is to be determined through discussions with the prospective CAPs. UU will also review whether the role of CAP will include: — operating and maintaining the asset(s) These elements will be reviewed based on a value for money assessment, market engagement feedback, risk allocation and the strategic nature of the assets. UU wishes to make the market aware of the potential opportunity in relation to the role of the CAP for the project and to commence a market engagement exercise in relation to that role. UU also wishes to engage with interested parties to confirm the chosen approach to the procurement of the CAP, to advance such infrastructure providers understanding of the role of the CAP and to obtain market feedback.