Railway and tramway passenger coaches, and trolleybuses

Tender description

Coventry City Council (‘CCC’) is seeking a private sector partner (‘PSP’) with whom to establish a joint venture (‘JVCo’) for the delivery of a very light rail programme, comprising a state of the art vehicle and innovative track system in Coventry (the ‘Project’). The purpose of the JVCo is to: (a) take ownership of the Project; (b) develop the business case; (c) engage in the research and development activities required to implement the Project; (d) secure all planning and statutory consents; (e) fund and execute the Project through to completion of the route(s). The Project is expected to generate significant commercial opportunity nationwide and globally (via product purchase or licence arrangements). CCC is planning to host a bidders' conference on 14.11.2019 for the purpose of information gathering and engaging with potential PSPs around this exciting opportunity. Information from the conference will be used to inform what delivery structure is most likely to add value to the Project. The Project aims to bring together the latest innovations in the automotive sector and apply them to the light rail sector to create an affordable 'Very Light Rail' system (‘VLR’). The hope is that VLR is capable of being deployed in Coventry and across the wider region. To date CCC has committed a significant degree of funding and resource into the R&D phase of the Project including procuring the development of a demonstrator vehicle and a provider to carry out track design. CCC now wishes to build on this investment and progress to implement the Project. To achieve this, CCC envisages establishing a JVCo with a PSP. The JVCo will take responsibility for driving the Project forward including: (a) completing all outstanding R&D activities; b) devising the business case for the first route in the Coventry region; (c) procuring the necessary planning and statutory consents for the first route; and (d) completing the design, construction and operation of the first route of the Project. CCC envisages providing the JVCo with: (a) the outputs of the R&D activities completed to date; (b) IP rights in relation to the intellectual property owned by the Council in connection with the Project; and (c) an agreed proportion of funding to carry out the JV activities (with the terms and structure of such funding being agreed as part of the procurement process). CCC also envisages providing the JVCo with the exclusive right to operate the VLR system in Coventry and will work with the PSP to expand the business of the JVCo to other regions of the UK. It is envisaged that the PSP will provide resources, funding and expertise to the JVCo in order to successfully carry out the activities set out above. The exact detail of the PSP's contributions will be established during the procurement process. CCC anticipates commencing a formal competitive dialogue process (under the Utilities Contracts Regulations 2016) in December 2019. Prior to commencing the process, CCC is keen to engage with the market via a soft market testing exercise to discuss this exciting opportunity and, in particular, to take soundings on the structure of the JVCo; relevant contributions by each party; timing for incorporation of the JVCo; interplay with the various phases of the Project and terms for the overarching and operating commercial model. CCC encourages potential bidders to attend the bidders' conference on 14.11.2019 to provide open and constructive comments about the Project and thoughts on how best to draw in private sector expertise. Should any potential bidders be minded to collaborate with other private sector partners (whether in the capacity of investors and/or key sub-contractors/supply chain) then CCC would encourage a combined level of representation at the conference. CCC asks that senior members of each organisation are available at the bidder's conference to enable informed and constructive conversations to take place. CCC will have available senior Directors to respond accordingly. The feedback and comments from the bidder's conference will be recorded and shared with the internal CCC Project leadership team. The information will be used to inform whether the proposed JVCo is the most appropriate means to capture PSP added value and, if so, what is the optimal timing for its incorporation. Whilst respecting the commercial confidentiality of any discussions had with the potential PSP bidders, CCC will share with the market the general conclusions drawn from this engagement process and what decisions the process has influenced. The webinar will be held on 4 November at 10. a.m. Please register via https://attendee.gotowebinar.com/register/597358110511 The bidders' conference will be held on 14.11.2019 at Pinsent Masons LLP, 55 Colmore Row, Birmingham, B3 2FG and interested parties are invited to register their interest and book their meeting slot via the following Webinar link: https://attendee.gotowebinar.com/register/5973581105113005581