Public Sector Network Tender Alert


15472-2013: UK-Truro: Operation of a power plant

Cornwall Council is seeking to attract a suitably qualified and experienced organisation to develop an energy centre on existing disused Council owned land in Pool in West Cornwall. The overriding intention is for the energy centre to contribute to the energy needs of the Pool regeneration area, whilst responding to the Council's drivers for carbon reduction, security of energy supply and economic development. The desired principal output is to develop a combined heat and power plant to feed electricity to the national grid, with the possibility of supplying steam or syngas to a nearby commercial laundry and hot water to the mixed use development beyond. The project concept stemmed from a feasibility study for district heating in the area undertaken by an independent consultant on behalf of the Council in 2010-11. The successful provider appointed will be required to operate under the terms and conditions of a formal development agreement which will incorporate details of key items such as the requirements surrounding land lease charges payable to the Council on an annual basis and outline gain share mechanisms.

Ref: 2011.10F.,


Cornwall Council
Cornwall Council Corporate Procurement Team Dalvenie House New County Hall Treyew Road Truro Cornwall
Contact point(s): Cornwall Council Corporate Procurement Team
For the attention of: Mike Shillaber - Category Lead
TR1 3AY Truro
Telephone: +44 1872322716
Fax: +44 1872323507
Internet address(es):
General address of the contracting authority:
Further information can be obtained from: The above mentioned contact point(s)
Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)
Tenders or requests to participate must be sent to: The above mentioned contact point(s)

Contract value: The site on offer covers 0.6ha and is situated in a light industrial zone 1 km south of the A30 on the site of the disused South Crofty Mine. It is within the Pool regeneration area, which includes the Heartlands Heritage Centre and proposed East-West road link between Camborne and Pool. At present the site contains former mine buildings which are unused and in a poor condition. The developer will be required to undertake the necessary site clearance and remediation.The site is to be offered under a development agreement and lease agreement underwhich the appointed provider will be required to fully fund, construct and run or oversee the running of the energy centre.The lease agreement will be for a minimum period of 25 years from practical completion of the plant, with an option to extend for up to a further 5 years. Draft contract documents will be included in the tender pack. Additional background information concerning the site location, its condition and its logistics will also be included.For the purposes of advertising this contract opportunity, the overall contract value has been estimated, on the basis of a wood waste CHP plant , as being up to £5.6m (NPV over 25 years at 11% discount rate). However the choice and scale of energy centre technology is left to bidders to define, thus the actual contract value may be expected to vary significantly depending on the acceptabilty and suitability of the proposals put forward and substantiated by bidders.Please note though that the latter figures and scenario are provided for illustrative guidance purposes only and to arrive at the indicative estimated contract value on that basis only as published below. As such prospective providers cannot necessarily rely on their accuracy of those assumptions either at this stage in the process or in the future.Estimated value excluding VAT: Range: between 1 and 5 600 000 GBP

Published: 17 Jan 2013, Receipt by: 11 Mar 2013