REQUEST FOR QUOTATION (RFQ) QUOTATION REFERENCE NUMBER: NWDA00238 NORTH WEST INFRASTRUCTURE STUDY: ISSUES, CONSTRAINTS AND DELIVERY PROJECT BRIEF ISSUED BY: TIM HEWITT DATE OF ISSUE: 23 October 2007 DEADLINE FOR REQUESTS FOR CLARIFICATION: 4.00pm, Monday 29 October 2007 DEADLINE FOR RECEIPT OF RESPONSES: 4.00pm, Friday 9 November 2007 In the event of queries arising, please contact: Tim Hewitt, Principal Planner, Northwest Development Agency, Renaissance House, PO Box 37, Centre Park, Warrington, WA1 1XB. Telephone: 01925 400247. Email: tim.hewitt@nwda.co.uk 1
INTRODUCTION The provision of basic infrastructure including power supplies, water and drainage are fundamental to economic development. However the Agency is aware that utility reinforcement – in particular the provision of electricity – to service existing businesses and new development is becoming a weakness in the development process. Today utilities are provided by the private sector and investment decisions are taken by private companies, who within strict regulatory frameworks seek to maximise income whilst minimising risk. Therefore this study has been commissioned in order to help the North West Development Agency (NWDA) understand how to most effectively secure the adequate and timely provision of utility services to support economic growth and regeneration within the region.
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BACKGROUND Anecdotally the Agency is aware that infrastructure constraints – related often to power supply – are affecting development on major employment sites. Concern was expressed at the Regional Spatial Strategy Examination in Public that constraints were also emerging in relation to drainage and water supply, although no consistent and up to date evidence has been produced. Whilst some useful research has been carried out, generally the nature of the problem is poorly understood by those involved in the development process. Consequently there is an urgent need to clarify the issues involved and determine workable solutions.
Research1 and case studies2 have identified a general problem of the utilities market not securing the advanced servicing of development sites. In addition, the University of Salford are investigating how to address the provision of critical infrastructure to city-regions3. In general terms, these studies have concluded that: •
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There could increasingly be a mismatch between infrastructure planning and regional growth aspirations which requires urgent attention through promoting strategic understanding between all stakeholders; Short-term local or development-specific solutions may no longer work as major development projects could run into serious delays or capacity problems; Often the cost of new or replacement infrastructure does not generate a sufficient return to the utility company, hence it is not considered to be economic and does not justify the capital investment; Delays and abortive costs may be reducing the effective regeneration budget in the UK as funds are diverted to finance utility infrastructure, which could also reduce the competitiveness of the development industry; Where sites within different regions are competing to attract investment, those without the necessary infrastructure could be at a significant disadvantage. This could have a disproportionate impact on less economically active areas, reinforcing the cycle of disadvantage; and Where this problem has been addressed by the public sector, it is often on a project by project basis and there is a need for a much more co-ordinated and strategic approach.
POLICY CONTEXT Planning Policy Statement 12: Local Development Frameworks National policy provides guidance on the provision of infrastructure through the planning system and recognises that utilities infrastructure is important in all new developments. It states that in preparing planning policy the ‘capacity of existing infrastructure and the need for additional facilities should be taken into account’. It also highlights the importance of coordinating new development with the infrastructure it demands. Those bodies responsible for the provision of infrastructure have been identified as having a key role through the development of planning policy.
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Utilities Infrastructure Study. Vantage Point for English Partnerships, April 2002.
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Utility Procurement Monitoring Study: Best Practice Case Studies, OGCbuying.solutions for English Partnerships, 2004. 3
City-Regions and Critical Infrastructure: Draft Discussion Paper and Recommendations. The Centre for Sustainable Urban and Rural Futures (SURF), March 2007.
They are able to ‘influence the pattern of new development so that it takes account of the likely infrastructure limitations and makes best use of existing infrastructure.’ Therefore the ability to influence the provision of infrastructure to accommodate new development is an extremely important consideration within the development of planning policy, and the determination of major planning applications. Northwest Regional Economic Strategy 2006 Through the Regional Economic Strategy (RES) the NWDA has identified key locations and sectors for growth within the region. The RES is based around 122 actions, of which 45 are identified as transformational actions. For a full copy of the RES, please refer to the following link: http://www.nwda.co.uk/publications/strategy/regional-economic-strategy200.aspx Action 90 of the RES seeks to ensure forward planning for sustainable growth by the utilities companies and the planning system. It identifies that the region’s utility infrastructure, especially electricity, could be a constraint on growth without appropriate planning and investment. It is, therefore, directly related to a number of transformational actions within the RES, such as: • Develop and implement an integrated economic plan for East Lancashire (transformational action 47) • Implement the Blackpool masterplan (transformational action 48) • Develop and implement the Barrow masterplan (transformational action 49) • Develop and implement an integrated economic plan for West Cumbria (transformational action 50) • Capitalise on the strengths and key assets of the cities of Manchester, Liverpool and Preston as key drivers for city regional growth (transformational action 54) • Develop plans to capitalise on ongoing private sector investment around Crewe, Chester, Warrington, Lancaster and Carlisle (transformational action 55) • Grow Manchester and Liverpool John Lennon Airports as set out in the Future of Air Transport White Paper (transformational action 72) • Grow the Port of Liverpool (including Birkenhead) (transformational action 73) • Deliver the designated Strategic Regional Sites as regional investment sites, knowledge nuclei or intermodal freight terminals (transformational action 80) • Ensure new housing provision in locations which support wider regeneration or knowledge based economic growth (transformational action 85) Submitted Draft Regional Spatial Strategy for the North West of England The spatial framework of the draft Regional Spatial Strategy (RSS) for the
North West focuses on the three City Regions of Liverpool, Manchester and Central Lancashire. It seeks to maximise growth opportunities in these locations, and within them the two Regional Centres of Manchester/Salford and Liverpool to reflect their role as key economic drivers in the Region, their potential for enhanced economic growth, and their capacity to handle large scale development in a sustainable fashion. A further 27 regional towns and cities have been identified, which alongside the Regional Centres, will be a focus for new development within the region, along with a number of sites which have been listed as broad locations for regionally significant economic development. The Budget 2007 The 2007 Budget sets out two principal methods which Government propose to use which could have a significant impact on how Local Planning Authorities (LPAs) and RDAs deal with infrastructure planning and provision:
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The forthcoming Planning Gain Supplement (PGS) will be a proposed levy on the value uplift accruing to land granted planning permission. Whilst 70 per cent of PGS would be allocated to the LPA, a share would be returned to the region. “Regions would have access to a fund for spending in support of regional infrastructure priorities in pursuit of the objectives identified in Regional Spatial Strategies” (p75).
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The 2007 Comprehensive Spending Review – Policy Review into Supporting Housing Growth proposes that LPAs should undertake sound infrastructure planning as part of the formation and review of their Local Development Frameworks (LDFs), and that the Planning Inspectorate should consider the soundness of infrastructure planning when deciding whether to approve LDFs.
OBJECTIVES FOR THE STUDY The objectives for the study are as follows: 1. Within the North West region, to identify the resource allocation process through which utilities infrastructure investment is procured, setting out clearly the roles of the various bodies involved (e.g. regulators, companies and the Environment Agency) for water supply, drainage (foul and surface water) electricity and gas. 2. Establish how resource allocation processes can be influenced (and are being influenced) by the Agency and others including the Environment Agency and regulators. 3. Provide evidence of specific and geographical constraints and issues which are influencing economic development in our region now, or may do so in the foreseeable future (including the risk of disruption to supply). 4. Advise on how any constraints or difficulties might be overcome with recommendations to specific agencies including:
a. b. c. d. e. f. g.
Utilities companies; Regulators; Environment Agency; North West Regional Assembly (NWRA); NWDA; Local planning authorities; and Other relevant organisations.
These recommendations may relate to the need to improve dialogue and planning processes and the more fundamental issue of financial resources. 5
SUGGESTED METHODOLOGY Baseline Review and Case Studies Report to include: • • • • • • •
a desk-top review of relevant plans, strategies, studies and guidance with relevance to the provision of utilities infrastructure within the North West; an overview of the utilities market within the North West; a detailed assessment of the potential for utilities shortfall and servicing which could constrain economic development in the North West; consultation with key stakeholders to identify relevant issues and solutions; case studies where infrastructure has been successfully provided to sites of strategic importance in the North West; an explanation of the strategic forward planning and investment processes in servicing new development, including the investment planning of the region’s utilities companies; and an assessment of the respective roles of the private and public sectors in the North West in the funding and delivery of utilities infrastructure.
The Final Report should: •
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examine potential solutions to address any anticipated service shortfall within the region, and recommend the actions required by utility providers, the public sector, regulators, developers and any other relevant stakeholders; and provide best practice solutions that could help to address future servicing problems.
Outputs: Stage 1 Baseline Report • •
5 full-colour bound hard copies and 5 CD copies, to include Microsoft Word and pdf versions with a reasonable file size and an emailable Executive Summary. Presentation to the Steering Group, discussion of comments and identification of key issues for consideration as part of stage 2.
Stage 2 Draft Report • •
5 full-colour bound hard copies and 5 CD copies, to include Microsoft Word and pdf versions with a reasonable file size and an emailable Executive Summary. Presentation to Steering Group of Draft Report setting out key issues for consideration.
Stage 3 Final Report and Executive Summary •
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30 full-colour bound hard copies and 30 CD copies, to include Microsoft Word and Adobe Acrobat (pdf) versions with a reasonable file size. The Executive Summary needs to be capable of email circulation. Final Presentation to Steering Group. Presentation to one other group, potentially the NWDA Infrastructure Sub-Group, NWDA Board Members or to a wider audience as determined by the Steering Group.
SUGGESTED PROGRAMME The project should be completed within four months of the date of appointment as suggested below:
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Interview
Week 0
Appointment and Inception
Week 1
Stage 1: Draft Baseline Review
Week 4
Stage 1: Final Baseline Review
Week 5
Stage 2: Draft Report
Week 10
Stage 3: Final Report
Week 12
SUBMISSION REQUIREMENTS The submission should demonstrate the team’s understanding, skills and experience in: • • • • • • • •
The operation of the deregulated utilities market; Planning for the provision of utilities infrastructure; The development process; Financial mechanisms through which utilities are provided; Relevant government policy including planning policy; Engineering for water and energy; Commercial property market; and Economic development and regeneration.
In order to demonstrate the ability of the consultant team to successfully
complete the commission, the submission should include the following: • • • • • • • •
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Team: information about the individual who will manage the project and those who will do the day-to-day work on the project; Experience: examples of similar commissions successfully completed and the comments made by each respective client; Methodology: a robust approach to delivering the study; Programme: a realistic timescale for project completion including reporting dates at least a week prior to Steering Group meetings; Value for Money: a fee proposal and invoicing arrangements; Company Details: for the lead consultant/contract holder including Professional Indemnity Cover; Sub-contractors: Any sub-contractors to be used must be stated in the supplier’s response to this RFQ.. Terms and Conditions: Any contract resulting from this RFQ shall be subject to the Agency’s Standard Terms and Conditions of Contract for Services.
BACKGROUND DOCUMENTS This list is not exhaustive, but comprises some of the relevant documents which the Agency is aware of at the present time: Northwest Regional Economic Strategy. NWDA, March 2006. www.nwda.co.uk/publications North West Economic Baseline: Final Full Report. Regeneris Consulting for NWDA, July 2005. www.nwda.co.uk/publications Submitted Draft Regional Spatial Strategy for the North West of England. North West Regional Assembly, January 2006. http://rpg.nwra.gov.uk/planning/spatial.php Draft RSS Examination in Public Panel Report, 8 May 2007. http://www.northwesteip.co.uk/home/ The Budget 2007 (pp70-76), HM Treasury, March 2007. http://www.hmtreasury.gov.uk/budget/budget_07/report/bud_budget07_repindex.cfm Utilities Infrastructure Study. Vantage Point for English Partnerships, April 2002. http://www.englishpartnerships.co.uk/publications.htm Utility Procurement Monitoring Study: Best Practice Case Studies, OGCbuying.solutions for English Partnerships, 2004. http://www.englishpartnerships.co.uk/utilityprocurement.htm City-Regions and Critical Infrastructure: Draft Discussion Paper and Recommendations. The Centre for Sustainable Urban and Rural Futures (SURF), March 2007.
Infrastructure Supporting Housing Growth: Further Submission to HM Treasury. Royal Town Planning Institute, 29 January 2007. http://www.rtpi.org.uk/download/738/HMT-Further-Qs-RSvweb.pdf Planning Policy Statement 1: Delivering Sustainable Development, DCLG, February 2005. http://www.communities.gov.uk/index.asp?id=1143804 Planning Policy Statement 22: Renewable Energy, ODPM, August 2004 http://www.communities.gov.uk Consultation Planning Policy Statement: Planning and Climate Change http://www.communities.gov.uk Planning for a Sustainable Future: White Paper, 21 May 2007 http://www.communities.gov.uk/index.asp?id=1510502