Financing of Rolling Stock

Description

LNER commenced a procurement process with potential manufacturers for the design, manufacture, testing and supply (and associated maintenance activities) of a fleet of ten (10) InterCity trains (the "Base Order Units"), owner owned spares, special tools, simulator hardware and technical information, mock-ups (together the "Leased Equipment") and depot works for the use on the East Coast franchise. There was also an option to procure up to an additional five (5) trains (the "Option Units"). The trains will provide LNER with additional capacity to accommodate future growth and have performance characteristics that enable the fleet to be timetabled effectively amongst modern InterCity trains. The trains shall be fully rated for operation on 25kV overhead line equipment and have self-power capability for operation on non-electrified sections of the network and over non-electrified diversionary routes, increasing the flexibility of LNER's fleet and the ability to provide uninterrupted services during engineering works. Lot 1: The subject of the procurement was financing for the Base Order Units, Leased Equipment, depot works and LNER's project costs by way of an Operating Lease Agreement (OLA) through a qualified provider of rolling stock operating leasing solutions. Further detail is set out in Section II.1.4. LNER chose to run the procurement under the negotiated procedure with a prior call for competition under regulation 47 of the Utilities Contracts Regulations 2016. The successful financier was chosen on the basis of the most economically advantageous bid based on the award criteria set out in the procurement documents.