II.2.2) Additional CPV code(s)
09310000
09330000
31121110
32500000
32552420
34632300
34940000
45111291
45200000
45213000
45213313
45213320
45230000
45234000
45234112
45234115
50220000
50222000
50224000
65300000
66120000
70112000
71311230
71314000
71314100
71314200
71540000
71541000
79420000
79421000
79421100
II.2.3) Place of performance
NUTS code:
UKL
Main site or place of performance:
South Wales
II.2.4) Description of the procurement
This is a procurement to acquire a controlling interest in GCRE Ltd (the "Company"). The Global Centre of Rail Excellence ("GCRE") is a planned railway infrastructure and rolling stock testing, proving, demonstration and storage facility in South Wales, on a site of 700 hectares located within the Powys and Neath Port Talbot local authorities.
For the rail industry and its supply chain, GCRE will provide a single site that brings people and ideas together, enabling world class research, testing and innovation. GCRE will be net zero in operation and will be the first purpose built large scale rail testing facility in the UK.
The capital deployment needed will occur over a period of 3 years with the aim to achieve full commercial operations in FY25/26.
GCRE's core revenues will be derived from the assets delivered by Investment Phases 1 and 2, which are described as follows:
1. Investment Phase 1: ground works, site preparation, outline design and the development of storage facilities.
2. Investment Phase 2: development of the rail infrastructure, including construction of a rolling stock testing track (outer loop with track length of 6.9km), an infrastructure testing track (inner loop with track length of 4km), additional storage and maintenance facilities, and the required building and civil works to make the site fully operational, including:
(a) assuring supply of cost effective, sustainable, and reliable energy to the site to support 24/7 operations; and
(b) working with local stakeholders to get access to relevant utilities and access infrastructure.
The total estimated capital cost to deliver Investment Phases 1 and 2 is c.GBP400m. Investment Phase 1 is already underway using public funding. Investment Phase 2 requires private funding.
There is also an opportunity to commercially exploit and develop the renewable energy opportunities available at the site in line with GCRE’s energy strategy (which opportunity would be beyond the initial c.GBP400m investment).
The initial c.GBP400m investment is proposed to be funded through:
i) Public funding of GBP70m already committed and partially drawn down: Welsh Government equity investment of GBP50m and a GBP20m grant from the Department for Business, Energy and Industrial Strategy.
ii) Private funding of c.GBP330m. The strategic investor selected through this procurement process will take majority ownership and control of the Company.
Please note that this is a current estimate and work is underway to determine more precise value of the total capital cost. It should also be noted that site works (including award of the contract for earthworks) and relevant studies have already commenced.
There is also the opportunity to develop, over the course of time, other commercial / revenue opportunities related to land / real estate development on the site.
Potential returns will depend on many commercial factors including (but not limited to) market conditions.
Details about the requirements and the scope can be found in the Selection Questionnaire ("SQ") and the Memorandum of Information ("MOI") with a more detailed description of the Company, its business plan and investment requirements to be provided at the tender stage of the procurement process.
Access to procurement documentation:
The MOI will be provided by GCRE Ltd to the applicant following signing by the applicant of a non-disclosure agreement ("NDA") and returning it to GCRE Ltd at the email address above.
Access to the SQ and the NDA is unrestricted and you can access the SQ and the NDA in the Additional Documents section of Sell2Wales.
Bidders should seek independent legal and commercial advice in relation to the opportunity.
II.2.5) Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
II.2.7) Duration of the contract, framework agreement or dynamic purchasing system
Duration in months: 36
This contract is subject to renewal: No
II.2.9) Information about the limits on the number of candidates to be invited
Envisaged minimum number: 3
Objective criteria for choosing the limited number of candidates:
Please see the section 'Description of the process being undertaken' in the SQ – see section II.2.4 above for instructions on how to access the SQ.
II.2.10) Information about variants
Variants will be accepted:
No
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
The duration is an estimate only, provided on the basis of the estimated time periods required to deliver Investment Phases 1 and 2.
Any queries and responses and circulars that may be issued during the tender period will be communicated exclusively via eTenderWales.
See section II.2.4 above for instructions on how to access the procurement documentation.