UPDATED Cardiff International Sports Village Energy Strategy

Description

The Council is issuing this Preliminary Market Engagement Notice to commence preliminary market engagement with interested contractors in respect of a future procurement process that it intends to conduct. The procurement process aims to appoint a contractor to deliver a turn-key solution inclusive of funding, design, construction, operation and maintenance of an energy solution across the Sports Village in Cardiff Bay -the Scheme. The Scheme is essential to protect the long-term sustainability of the existing sport and leisure facilities given the volatility of energy price and the Council’s commitment to reducing the Carbon footprint of its estate and support the wider regeneration. It is the intention to procure a District Energy Network - DEN - Developer through a private delivery model and for the parties to enter into a Development Agreement together with ancillary agreements. Other than land - long lease -and concessionary arrangements with the existing sporting and leisure assets and supporting with grant applications -third-party, not Council - where appropriate the Council will not be funding or financial supporting the delivery and operation of the energy asset by any other means. This has to be a private sector delivered and operated solution. The Development Agreement and ancillary agreements will set out the arrangements as between the Council and DEN Developer to enable the DEN Developer to finance, design, build, operate and maintain the DEN for a defined term. The Council makes the following supporting information available with this Notice, these documents can be found within the Attachments Tab on Proactis - Annex 1 - Energy Strategy Annex 2 - Energy Strategy Technical Report Annex 3 - Cost Report Annex 4 - Contract Structure Report Annex 5 - Revenue Report Annex 6 - Approved masterplan Proposed Procurement Structure - It is the intention to procure a District Energy Network - DEN - Developer through a private delivery model and for the parties to enter into a Development Agreement together with ancillary agreements. An overview of this structure is set out in Annex 4. The Development Agreement and ancillary agreements will set out the arrangements as between the Council and DEN Developer to enable the DEN Developer to finance, design, build, operate and maintain the DEN for a defined term. The Council envisages to commence a public procurement process for the Scheme via the issue of a Tender Notice in July 2025. The intention is to conduct the procurement using the Competitive Flexible Procedure as provided for under the Procurement Act 2023. The procurement process will involve a multi-staged process, which will permit dialogue. The competition will start with a pre-qualification process to allow the Council to identify and shortlist the most capable contractors who will then be subsequent invited to dialogue on the Scheme and submit tenders. Further details of the process will be made available when the procurement commences. Background In 2023, the Council invited the Market to respond to its request for feedback on a proposed model of delivery for the Scheme. The responses received helped the Council to better inform and shape its strategy for the Scheme and undertake further due diligence activities. Through this process, the Council are looking for a turn-key solution against their energy strategy within ISV whereby the successful parties can demonstrate the ability to fund, deliver and operate an energy centre infrastructure based upon a heat recovery solution between Ice Arena and International Pool as well as utilising heat recovery from Cardiff Bay. The initial essential outputs are - - Decarbonisation of the Cardiff International pool - CIP - Cardiff Ice Arena - CIA - and potentially Cardiff International White-Water Centre - CIWW. - Long-term sustainable energy strategy for the leisure infrastructure. - No capital investment from the Council or financial support or underwriting of costs. What are the Council offering? - Land on which to deliver an energy centre on a long lease of 125-250 years. This will have a restricted use for the delivery of an Energy Centre. - Ability to connect to International Pool, Ice Arena and CIWW - Support to secure grants if required for the energy infrastructure. - Legal obligation on the incumbent new development to connect to the energy infrastructure - subject to availability, timing and requirements. What are the Council’s timescale requirements? - The Council must conclude the Procurement with an outcome for a Cabinet decision no later 4th quarter 2025-2026 -January to March 2026.. - The Council are targeting the energy infrastructure to be in place for heat recovery between Ice Arena and International Pool by no later than 3rd quarter of 2026-2027 - October to December 2027.