PRO004337-Works-Contract-Haweswater Aqueduct Resilience Programme

Description

United Utilities Water Limited (UUW) proposes to deliver a scheme titled Haweswater Aqueduct Resilience Programme (HARP) via Ofwat’s Direct Procurement for Customers (DPC) approach, engaging a Competitively Appointed Provider (CAP) to design, build, finance and maintain this major water resilience supply project. The Haweswater Aqueduct Resilience Programme ("HARP DPC Project") is intended to mitigate the risk of water service impacts as a result of asset failure of the existing Haweswater Aqueduct. In summary, the scope of the HARP DPC Project is the delivery of: (a) design, construction, testing and commissioning of the works. (b) planned and corrective maintenance, including lifecycle maintenance, of the assets following the completion of each section of the tunnel. (c) the project management of the activities. (d) financing of the activities. Lot 1: UUW is pursuing Ofwat’s DPC approach for HARP and Ofwat has designated the project to be delivered through DPC (https://www.ofwat.gov.uk/publication/direct-procurement-for-customers-project-designation-direction-issued-to-united-utilities-harp-scheme/). The intention of the DPC model is to unlock efficiency and innovation in the market by competitively procuring the delivery of large schemes such as HARP. Ofwat is of the opinion that delivering HARP following a DPC procurement process can reasonably be expected to deliver value for money for customers, as set out in its recent consent for the commencement of the HARP DPC procurement. Further information regarding the Ofwat methodology for DPC can be viewed via the following link; https://www.ofwat.gov.uk/wp-content/uploads/2017/12/Appendix-9-Direct-procurement-FM.pdf UUW will be utilising the negotiated procedure with prior call for competition and intends to award the entire scope to a single CAP. In summary, works and services for delivering the HARP DPC Project comprise: (a) The coordination of all design, construction, commissioning of works, implementation, and project management at all sites (b) management of limiting environmental impact to local communities (c) securing land and property rights (d) obtaining and complying with all consents (including s.106 Agreements) (e) compliance with all requirements with respect to Biodiversity Net Gain (f) design, construction, commissioning, implementation, testing & inspection of the works (g) provision of all utilities and services necessary for the permanent operation of the new aqueduct, including activation any associated connection fees (h) surveys, monitoring, and instrumentation works and services (i) studies, investigations, and assessments (j) reinstatement of all utilities, highways, footpaths, and hardstanding outside of the worksite that are damaged or temporarily modified during construction of the works (k) engagement with stakeholders, local communities and third parties impacted by the HARP DPC Project (with listed exceptions) including complaints resolution (l) provision of workforce occupational health services and well-being programmes (m) ancillary activities necessary to ensure that the works and services are carried out in accordance with good industry practice (n) protection and maintenance of the works through construction, testing and commissioning periods (o) provision of as-built construction records, operation and maintenance documentation and other documentation for the HARP DPC Project (p) provision of warranties and collateral warranties for plant and materials (q) provision of temporary works to deliver the HARP DPC Project (r) undertaking acceptance tests (s) provision of all elements required for operational and maintenance access (t) securing deeds of easement and rights of access along the entire length of the new HA tunnelled sections (u) monitoring the impact of the works on private water supplies and arranging the provision of alternative water supplies where required (v) provision of all other required works, services and activities required for specified operating techniques, parameters and restraints and water quality standards. The CAP will be appointed under a bespoke project agreement with UUW, the term of the project agreement will be 25 years, plus a construction period. UUW requires the following broad structure of the CAP: (a) The CAP legal entity will be a Special Purpose Vehicle (SPV) (b) The SPV will be a limited company (in accordance with amendments to UUW’s licence conditions) and will be formed prior to entry into the project agreement with UUW (c) The CAP will be owned by the equity provider entity (or entities) (d) The CAP will enter into the project agreement with UUW (e) The CAP will sub-contract the design, construction, and maintenance obligations (f) Where applicable, the CAP will sub-contract certain other obligations. Additional information: The purpose of this PIN is to give potentially interested parties advance notice that UUW intends to issue a contract notice for the above mentioned procurement shortly. This PIN does not constitute a call for competition to procure any works or services.