--- title: "Selection of an Investment Partner for the Global Centre of Rail Excellence" ocid: "ocds-kuma6s-126842" canonical_url: "https://d3tenders.com/contract/?ocid=ocds-kuma6s-126842" markdown_url: "https://d3tenders.com/contract/ocds-kuma6s-126842.md" json_url: "https://d3tenders.com/contract/ocds-kuma6s-126842.json" source: "Sell2Wales" current_stage: "Planning" buyer: "GCRE LTD" published: "2022-11-23" --- # Selection of an Investment Partner for the Global Centre of Rail Excellence Buyer: GCRE LTD Current stage: Planning OCID: ocds-kuma6s-126842 [View canonical contract page](https://d3tenders.com/contract/?ocid=ocds-kuma6s-126842) [Download OCDS JSON](https://d3tenders.com/contract/ocds-kuma6s-126842.json) ## Summary The Global Centre of Rail Excellence Ltd (GCRE Ltd) based in Onllwyn, Neath Port Talbot, is seeking a joint venture partner for the development and funding of the railway technology testing facility. The opportunity involves a planned procurement process to secure a Strategic Investor to acquire majority shareholding and control of GCRE Ltd. The procurement is currently in the planning stage, with a planned event scheduled in London on 7th December 2022 to discuss details with potential investors. This tender for the Global Centre of Rail Excellence project in South Wales presents a significant opportunity for businesses in the rail industry and related supply chain. The project aims to provide a state-of-the-art rail testing facility, promoting research, testing, and innovation. Suitable businesses for this tender include those with experience in rail operations, infrastructure development, greenfield projects, energy development, and complex project management. The project involves a total capital cost estimate of approximately GBP 400 million, with public and private funding being secured to achieve commercial operations by FY25/26. ## Notice This is an investment and commercialisation opportunity in relation to the Global Centre of Rail Excellence ("GCRE"), a planned railway infrastructure and rolling stock testing, proving, demonstration and storage facility in South Wales, on a site of 700 hectares located within the Powys and Neath Port Talbot local authorities. GCRE is being developed by GCRE Ltd, wholly owned by the Welsh Government. Through this procurement process, GCRE Ltd is seeking a joint venture partner ("Strategic Investor") to develop and fund GCRE to completion. The Strategic Investor will play a lead role in its successful and timely implementation, along with further commercialisation of the GCRE opportunity. The Strategic Investor could be a single investor or a consortium of investors, who will acquire a majority shareholding in and control of GCRE Ltd (being a minimum of 51%). The GCRE team will be holding an event in London on Wednesday 7 December 2022 to discuss the opportunity ahead in more detail with potential Strategic Investors. Those wishing to register for the event can do so here: https://directory.railbusinessdaily.com/gcre/ ### Lot Information Lot 1 GCRE is a planned railway infrastructure and rolling stock testing, proving, demonstration and storage facilities in South Wales, on a 700 hectares site located within the Powys and Neath Port Talbot local authorities. For the rail industry and its supply chain, GCRE will provide a single site that brings people and ideas together, enabling world class research, testing and innovation. GCRE will be net zero in operation and will be the first purpose built large scale rail testing facility in the UK. The capital deployment needed will occur over a period of 3 years with the aim to achieve full commercial operations in FY25/26. Delivery will take place across different investment phases as described below: 1. Investment Phase 1: Ground works, site preparation, outline design and the development of storage facilities - this is already underway using public funding. 2. Investment Phase 2: Private funding needed for the development of the rail infrastructure, including construction of a rolling stock testing track (outer loop track length 6.9km), an infrastructure testing track (inner loop with track length of 4km), additional storage and maintenance facilities, and the required building and civil works to make the site fully operational, including: (a) assuring supply of cost effective, sustainable, and reliable energy to the site to support 24/7 operations; and (b) working with local stakeholders to get access to relevant utilities and access infrastructure. The delivery of Investment Phases 1 and 2 form the "Project". The total estimated capital cost to deliver the Project is c.GBP400m (including estimated capital required for assuring energy supply to the site). There is also an opportunity to commercially exploit and develop the renewable energy opportunities available at the site in line with GCRE's energy strategy, which includes development of a solar PV plant. The proposed funding for the Project includes: i) Public funding of GBP70m already committed and partially drawn down: Welsh Government equity investment of GBP50m and a GBP20m grant from the Department for Business, Energy and Industrial Strategy. ii) Private funding of c.GBP330m with part of the funding to be provided as equity by the Strategic Investor and part of the funding to be arranged by the Strategic Investor as debt to GCRE. The Strategic Investor selected through this procurement process will take majority ownership and control of GCRE Ltd, work alongside existing management and provide support necessary to achieve successful delivery of the Project. iii) Please note that this is a current estimate for the Project and work is underway to determine more precise value of the total capital cost. It should also be noted that site works (including award of the contract for earthworks), and relevant studies have already commenced. This opportunity would also involve development over the course of time of other commercial / revenue opportunities related to land / real estate development on the site. A more detailed description of the Project, its business plan and investment requirements will be provided at the tender stage of the procurement process. Transaction Definition: The Strategic Investor will play a lead role in the successful and timely implementation of the Project and further commercialisation of the GCRE opportunity. In addition, the Strategic Investor will be required to: i) provide additional support, management capability and expertise to support GCRE in the planning and delivery of the Project and achieve commercial operation. ii) demonstrate adequate relevant experience necessary to achieve the objectives of GCRE, including experience in matters such as: - rail operations and/or infrastructure; - development of complex greenfield projects including investment, management; and operations; - energy development (additional experience in this is preferred). iii) provide / arrange the required funding for the Project to completion c.GBP330m.. The contract value stated in this notice is an estimate only. Potential returns will depend on many commercial factors including (but not limited to) market conditions. Bidders should seek independent legal and commercial advice in relation to the potential value of the opportunity. ## Key Details | Field | Value | | --- | --- | | Publication source | Sell2Wales | | Latest notice | https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=126842 | | Notice type | OJEU - F1 - Prior Information Notice | | Procurement type | Standard | | Procurement category | Services | | Procurement method | Not Specified | | Procurement method details | Not specified | | Tender suitability | Not specified | | Awardee scale | Not specified | | All stages | Planning | ## Dates | Field | Value | | --- | --- | | Publication date | 23 Nov 2022 | | Submission deadline | Not specified | | Future notice date | 18 Jan 2023 | | Award date | Not specified | | Contract period | Not specified | | Recurrence | Not specified | ## Values | Field | Value | | --- | --- | | Tender value | Not specified | | Lots value | Not specified | | Awards value | Not specified | | Contracts value | Not specified | ## Status | Field | Value | | --- | --- | | Tender status | Planned | | Lots status | Planned | | Awards status | Not specified | | Contracts status | Not specified | ## Buyer | Field | Value | | --- | --- | | Main buyer | GCRE LTD | | Locality | NEATH PORT TALBOT | | Post town | Swansea | | Postcode | SA10 9HN | | Country | Wales | | ITL 1 | TLL Wales | | ITL 2 | TLL4 Mid and South West Wales | | ITL 3 | TLL44 Neath Port Talbot | | Local authority | Neath Port Talbot | | Electoral ward | Crynant, Onllwyn and Seven Sisters | | Westminster constituency | Neath and Swansea East | | Delivery location | TLL Wales | ## CPV Codes ### Divisions - 09 - Petroleum products, fuel, electricity and other sources of energy - 31 - Electrical machinery, apparatus, equipment and consumables; lighting - 32 - Radio, television, communication, telecommunication and related equipment - 34 - Transport equipment and auxiliary products to transportation - 45 - Construction work - 50 - Repair and maintenance services - 65 - Public utilities - 66 - Financial and insurance services - 70 - Real estate services - 71 - Architectural, construction, engineering and inspection services - 79 - Business services: law, marketing, consulting, recruitment, printing and security ### Codes - 09310000 - Electricity - 09330000 - Solar energy - 31121110 - Power converters - 32500000 - Telecommunications equipment and supplies - 32552420 - Frequency converter - 34632300 - Electrical installations for railways - 34940000 - Railway equipment - 45111291 - Site-development work - 45200000 - Works for complete or part construction and civil engineering work - 45213000 - Construction work for commercial buildings, warehouses and industrial buildings, buildings relating to transport - 45213313 - Service-area building construction work - 45213320 - Construction work for buildings relating to railway transport - 45230000 - Construction work for pipelines, communication and power lines, for highways, roads, airfields and railways; flatwork - 45234000 - Construction work for railways and cable transport systems - 45234112 - Railway depot construction work - 45234115 - Railway signalling works - 50220000 - Repair, maintenance and associated services related to railways and other equipment - 50222000 - Repair and maintenance services of rolling stock - 50224000 - Reconditioning services of rolling stock - 65300000 - Electricity distribution and related services - 66120000 - Investment banking services and related services - 70112000 - Development of non-residential real estate - 71311230 - Railway engineering services - 71314000 - Energy and related services - 71314100 - Electrical services - 71314200 - Energy-management services - 71540000 - Construction management services - 71541000 - Construction project management services - 79420000 - Management-related services - 79421000 - Project-management services other than for construction work - 79421100 - Project-supervision services other than for construction work ## Release History - 23 Nov 2022 at 00:00 - Planning - OJEU - F1 - Prior Information Notice - https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=126842 ## Documents - https://www.sell2wales.gov.wales/search/show/search_view.aspx?ID=NOV419341 Selection of an Investment Partner for the Global Centre of Rail Excellence - This is an investment and commercialisation opportunity in relation to the Global Centre of Rail Excellence ("GCRE"), a planned railway infrastructure and rolling stock testing, proving, demonstration and storage facility in South Wales, on a site of 700 hectares located within the Powys and Neath Port Talbot local authorities. GCRE is being developed by GCRE Ltd, wholly owned by the Welsh Government. Through this procurement process, GCRE Ltd is seeking a joint venture partner ("Strategic Investor") to develop and fund GCRE to completion. The Strategic Investor will play a lead role in its successful and timely implementation, along with further commercialisation of the GCRE opportunity. The Strategic Investor could be a single investor or a consortium of investors, who will acquire a majority shareholding in and control of GCRE Ltd (being a minimum of 51%). The GCRE team will be holding an event in London on Wednesday 7 December 2022 to discuss the opportunity ahead in more detail with potential Strategic Investors. Those wishing to register for the event can do so here: https://directory.railbusinessdaily.com/gcre/ ## Notice URLs - http://www.sell2wales.gov.wales/Search/Search_Switch.aspx?ID=126842 - https://api.sell2wales.gov.wales/v1?lang=cy/Notice?id=ocds-kuma6s-126842 - https://directory.railbusinessdaily.com/gcre/ - https://gov.wales/global-centre-rail-excellence-wales ## 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-kuma6s-126842. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-kuma6s-126842.json.