---
title: "Financing of Rolling Stock"
ocid: "ocds-h6vhtk-02af4f"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02af4f"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-02af4f.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-02af4f.json"
source: "Find A Tender Service"
current_stage: "Award"
buyer: "LONDON NORTH EASTERN RAILWAY LIMITED"
published: "2023-12-06"
---

# Financing of Rolling Stock

Buyer: LONDON NORTH EASTERN RAILWAY LIMITED  
Current stage: Award  
OCID: ocds-h6vhtk-02af4f

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## Summary

The London North Eastern Railway Limited (LNER) recently completed the procurement process for the "Financing of Rolling Stock" contract. The contract involved the design, manufacture, testing, and supply of a fleet of InterCity trains and associated equipment for use on the East Coast franchise. The procurement was carried out through a negotiated procedure with a prior call for competition. The initial term of the Operating Lease Agreement (OLA) was set for 8 years with opportunities for extension. The deadline for supplier participation was 7th June 2021, with an estimated contract value between £200-500 million.

This tender presents an opportunity for qualified rolling stock operating lessors to engage in a lucrative contract with LNER, offering financing for the fleet of new InterCity trains. Businesses with experience in financing large-scale rail projects and a proven track record in providing equity for rolling stock acquisitions would be well-suited to compete. The procurement is set to bring future growth opportunities for the successful financier, as the new trains are designed to enhance capacity and performance, ensuring uninterrupted services for passengers across the network.

## Notice

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 Information

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.

Options: The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension was provided in the procurement documents.

Renewal: The OLA will have an initial term of 8 years and may be extended by LNER on multiple occasions provided that the aggregate duration of all of the extensions shall not exceed 8 years. Additional information regarding the initial term and any extension is provided in the procurement documents.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/035939-2023 |
| Notice type | Tender Notice |
| Procurement type | Standard |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Negotiated procedure with prior call for competition |
| Tender suitability | Not specified |
| Awardee scale | Not specified |
| All stages | Tender, Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 6 Dec 2023 |
| Submission deadline | 7 Jun 2021 |
| Future notice date | Not specified |
| Award date | 8 Nov 2023 |
| Contract period | Not specified |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £500,000,000 |
| Lots value | £500,000,000 |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Cancelled |
| Awards status | Active |
| Contracts status | Active |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | LONDON NORTH EASTERN RAILWAY LIMITED |
| Additional buyers | LONDON NORTH EASTERN RAILWAY LTD |
| Locality | YORK |
| Post town | York |
| Postcode | YO1 6DH |
| Country | England |
| ITL 1 | TLE Yorkshire and The Humber |
| ITL 2 | TLE2 North Yorkshire |
| ITL 3 | TLE21 York |
| Local authority | York |
| Electoral ward | Micklegate |
| Westminster constituency | York Central |
| Delivery location | Not specified |

## CPV Codes

### Divisions

- 66 - Financial and insurance services

### Codes

- 66114000 - Financial leasing services

## Release History

- 6 Dec 2023 at 13:50 - Award - Award Notice - https://www.find-tender.service.gov.uk/Notice/035939-2023
- 11 May 2021 at 08:40 - Tender - Tender Notice - https://www.find-tender.service.gov.uk/Notice/010206-2021

## Notice URLs

- http://www.lner.co.uk
- https://supplierlive.proactisp2p.com/account/login

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-h6vhtk-02af4f. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-h6vhtk-02af4f.json.