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Procurement Of A Development Partner For Kingston Potential Zone Area

Royal Borough of Kingston Upon Thames

This public procurement record has 3 releases in its history.

TenderUpdate

15 May 2026 at 19:12

UK4 - Tender Notice
Tender

30 Apr 2026 at 16:46

UK4 - Tender Notice
Planning

13 Oct 2025 at 16:17

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

The Royal Borough of Kingston Upon Thames is in the tendering stage of a significant public procurement process titled "Procurement Of A Development Partner For Kingston Potential Zone Area." This initiative is part of the larger Kingston district heating network project aimed at establishing a district heat network in Kingston, with a focus on low-carbon solutions utilising waste heat. This project is categorised under district heating and urban development construction work and covers the region centred around Kingston upon Thames, UK (region code UKI63). The tender process involves a competitive flexible procedure with key dates including a PSQ response deadline on 26th May 2026 and contract signing anticipated by 31st August 2027. With a procurement value of £432 million, this project aligns with the borough's goal to achieve carbon neutrality by 2038 and net-zero operations.

This tender presents substantial opportunities for businesses involved in sustainable construction, energy solutions, and infrastructure development. Companies with expertise in district heating, urban development, and energy services are particularly well-suited to participate. The project's high value and long-term nature, alongside its alignment with regional sustainability goals, provide a platform for businesses to expand their portfolio and showcase their capabilities in innovative, environmentally-focused urban solutions. Potential suppliers are encouraged to sign a Non-Disclosure Agreement to access full tender documentation, paving the way for meaningful engagement in this ambitious infrastructure development.

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Notice Information

Notice Title

Procurement Of A Development Partner For Kingston Potential Zone Area

Notice Description

Royal Borough of Kingston are conducting this Procurement to select a Development Partner to develop a district heat network in the Kingston Potential Zone Area (the "Network") and, subject to receipt of the necessary approvals, to deliver the Network using the Development Partner's chosen corporate vehicle (the "Project Company"). This is a mixed procurement. The Network is intended to operate as part of Kingston's strategic and essential utility infrastructure, designed to supply affordable, low-carbon heat to homes and public buildings. The Network is expected to achieve significant reductions in carbon emissions compared with conventional gas-based heating, improved local air quality through reduced combustion, and increased use of locally sourced low-carbon energy. By providing a centralised, efficient heat solution, the Network will support the Authority's ambition to achieve borough-wide carbon neutrality by 2038 and net-zero Authority operations. RBK has already carried out technical and commercial feasibility work that confirms the potential for the Reference Scheme to be a viable, scalable heat network. The Reference Scheme assumes the use of waste heat from the Thames Water Hogsmill Sewage Treatment Works and is planned to connect Cambridge Road Estate, Kingston Hospital, Kingston University's Penrhyn Road campus, and the new Kingston Leisure Centre, with the potential for future expansion into Kingston Town Centre and surrounding areas as Subsequent Phase(s). The purpose of this Procurement is to appoint a Development Partner to, as a first step, take forward the detailed technical design, advance the commercial and financial modelling (through the delivery of development services under the Development Agreement). The Development Partner will not be required to design the Reference Scheme and can instead deliver another scheme, provided that scheme meets the Mandatory Requirements (as detailed in the Development Agreement). The Reference scheme has a value of PS33m exclusive of VAT. The project adopts the DESNZ AZP 'Golden Share' delivery model, split into two distinct phases: Phase 1 (Development Services): The successful partner will enter into a Development Agreement (a services contract with a nominal PS1 fee) to deliver detailed technical design and financial modelling. Phase 2 (Project Delivery): Subject to the project passing the "Approvals Gateway," the parties will enter into a Shareholders' Agreement and Articles of Association. This phase is treated as a Concession Contract for the construction, operation, and maintenance of the Network. If Financial Close occurs, the Authority will enter into a Shareholders' Agreement and establish a single supplier framework. To satisfy framework notice transparency requirements, the contracting authorities and parties listed below are identified as being entitled to award call-off contracts, specifically Connection and Supply Agreements (CSAs), to buy heat and hot water from the Network: - The Royal Borough of Kingston upon Thames - Kingston University Higher Education Corporation - Kingston and Richmond NHS Foundation Trust (formerly Kingston Hospital NHS Foundation Trust) - Places For People Leisure Management Limited, in its capacity as the operator of the Kingston Leisure Centre on behalf of the Authority. In accordance with Section 47(3) of the Act, the Authority has set a framework term of 8 years as it considers this longer term is required due to significant upfront capital investment, phased technical design (RIBA Stage 4), and long-term infrastructure delivery cycles. The 8-year term ensures alignment with the project's funding cycle, including the PS11m Green Heat Network Fund (GHNF) grant, and provides the commercial stability necessary for the Development Partner to transition through the Approvals Gateway to Financial Close. In addition, the Authority intends to award the Cambridge Road Estate Connection and Supply Agreement, giving rise to a concession contract, which provides for the supply of heat and hot water from the Network to the Cambridge Road Estate. To support delivery, the Authority will also enter into: - A Lease for the Villiers Road site (if required for the Energy Centre). - A Grant Funding Agreement Variation Deed (or Grant Pass-through Agreement), which facilitates the transfer of the benefit of the Green Heat Network Fund (GHNF) capital grant (estimated at PS11m) from the Council to the Project Company to support the construction phase of the Network, subject to compliance with the terms of the original Grant Funding Agreement and subsidy control requirements. The indicative procurement dates for this opportunity are: 26th May 2026 at 12:00 - Deadline for receipt of PSQ Responses 10th July 2026 - Shortlisted suppliers invited to submit Interim Tender Responses 11th September at 12:00noon - Deadline for receipt of Interim Tender Responses 4th January 2027 - Issue Invitation to Submit Final Tender 8th February 2027 at 12:00noon GMT - Deadline for receipt of Final Tender Responses 30th June 2027 - Assessment summaries & Contract Award Notice issued 31st August 2027 - Contract signature The Royal Borough of Kingston is requesting that potential Suppliers review and sign a Non-Disclosure Agreement to be able to access the full tender documentation including PSQ, ITT, Contractual Documentation, Lease HoT, and the Data Pack. Potential Suppliers who wish to access the PSQ, along with the full tender information, should sign and return an NDA that can be accessed via the e-tender portal, by following the link from this advert.

Planning Information

The Preliminary Market Engagement documents have been published on the Council's e-procurement portal, London Tenders Portal https://procontract.due-north.com Please access the project via the portal to download and complete the Pre Market Engagement questionnaire. Please submit your response via the portal.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05ae95
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/045139-2026
Current Stage
Tender
All Stages
Planning, Tender

Procurement Classification

Notice Type
UK4 - Tender Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

09 - Petroleum products, fuel, electricity and other sources of energy

42 - Industrial machinery

45 - Construction work

71 - Architectural, construction, engineering and inspection services

CPV Codes

09323000 - District heating

42515000 - District heating boiler

45211360 - Urban development construction work

45232140 - District-heating mains construction work

45232141 - Heating works

71314000 - Energy and related services

Notice Value(s)

Tender Value
£360,000,000 £100M-£1B
Lots Value
£360,000,000 £100M-£1B
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
15 May 20263 months ago
Submission Deadline
12 May 2026Expired
Future Notice Date
1 Jun 2026Expired
Award Date
Not specified
Contract Period
1 Sep 2027 - 1 Sep 2068 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Active
Lots Status
Active
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Royal Borough of Kingston Upon Thames
Additional Buyers

The Royal Borough of Kingston upon Thames

Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
KINGSTON UPON THAMES
Postcode
KT1 1EU
Postcode Area
Kingston upon Thames
Country
England
Major Region (ITL 1)
TLI London
Basic Region (ITL 2)
TLI6 Outer London - South
Small Region (ITL 3)
TLI63 Merton, Kingston upon Thames and Sutton
Delivery Location
TLI63 Merton, Kingston upon Thames and Sutton
Local Authority
Kingston upon Thames
Electoral Ward
Kingston Town
Westminster Constituency
Kingston and Surbiton

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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