Fund Manager Contract London

Fund Manager Contract London

The Greater London Authority is seeking to enter into a contract with a Fund Manager to manage and invest by way of loans (senior, junior or mezzanine) and equity investment.

United Kingdom-London: Financial and insurance services

2016/S 228-415308

Contract notice

Services

Directive 2014/24/EU

Section I: Contracting authority

I.1)Name and addresses

Greater London Authority (GLA)
City Hall, The Queen’s Walk
London
SE1 2AA
United Kingdom
Contact person: Gary Seed
E-mail: garyseed@TfL.gov.uk
NUTS code: UKI
Internet address(es):Main address: http://london.gov.uk/
I.2)Joint procurement

I.3)Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at:https://eprocurement.tfl.gov.uk/epps/home.do
Additional information can be obtained from the abovementioned address
Tenders or requests to participate must be submitted to the abovementioned address

I.4)Type of the contracting authority

Body governed by public law

I.5)Main activity

General public services

Section II: Object

II.1)Scope of the procurement

II.1.1)Title:

Fund Manager – Mayor of London’s Energy Efficiency Fund.

II.1.2)Main CPV code

66000000 – SA01 – SA03

II.1.3)Type of contract

Services

II.1.4)Short description:

The Greater London Authority (the ‘GLA’ or ‘Contracting Authority’) is seeking to enter into a contract with a Fund Manager to manage and invest by way of loans (senior, junior or mezzanine) and equity investment, the capital which is to be committed to a new fund, which the winning bidder will establish and which will be called the Mayor of London’s Energy Efficiency Fund MEEF (the ‘Fund’). The Contracting Authority is not specifying any particular legal structure for the Fund. It is envisaged that 90 % of the capital will be invested by way of loans and no more than 10 % by way of equity. The Fund will be established to invest in technologies relevant to energy efficiency such as:

— Building retrofit and energy efficiency measures in public, commercial and residential properties;

— Production and distribution of low carbon energy, including combined heat and power, tri-generation and communal / district heating generation and/or networks; and

— Small scale renewable energy generation.

II.1.5)Estimated total value

Value excluding VAT: 25 000 000.00 EUR

II.1.6)Information about lots

This contract is divided into lots: no
II.2)Description
II.2.1)Title:

II.2.2)Additional CPV code(s)

66100000
66122000
66140000
66190000
66120000

II.2.3)Place of performance

NUTS code: UK

II.2.4)Description of the procurement:

The Greater London Authority (the ‘GLA’ or ‘Contracting Authority’) is seeking to enter into a contract with a Fund Manager to manage and invest by way of loans (senior, junior or mezzanine) and equity investment, the capital which is to be committed to a new fund, which the winning bidder will establish and which will be called the Mayor of London’s Energy Efficiency Fund MEEF (the ‘Fund’). The Contracting Authority is not specifying any particular legal structure for the Fund. It is envisaged that 90 % of the capital will be invested by way of loans and no more than 10 % by way of equity and bids must be submitted on this basis. The contract for the Fund can include provisions to allow for loans to increase to up to 100 % of the capital with consent from all investors in the Fund.

The Fund will be established to invest in technologies relevant to energy efficiency such as:

— Building retrofit and energy efficiency measures in public, commercial and residential properties;

— Production and distribution of low carbon heat, including combined heat and power, tri-generation and communal / district heating generation and/or networks; and

— Small scale renewable energy generation.

The Fund Manager is required to make the investments and then administer the Fund, including monitoring and managing drawdowns (see the Specification for further information)

The Fund Manager must ensure that all investments are made in a State Aid compliant manner and are in accordance with all applicable laws.

The Contracting Authority will initially allocate up to £43m of European Regional Development Fund (ERDF) to the Fund. This initial allocation may be increased, by an additional amount of public money not exceeding £75m, during the life of the Fund. This could come from further ERDF (or other public resource) monies, returns from the existing London Green Fund (in which GLA invested) or other GLA resources. The ERDF and returns from the London Green Fund (LGF) allocated to the Fund will be on terms analogous to an equity investment but other resources from the GLA may be invested in other forms. The European Investment Bank (EIB) has provisionally indicated a willingness to provide up to 100 000 000 GBP of senior debt financing to the Fund, subject to its own due diligence including on the selected Fund Manager, and internal approval processes. It is the intention of the GLA to consult with the EIB throughout this procurement exercise to help in this regard. The term of the EIB loan is expected to be in line with the life of the Fund and EIB’s contribution will rank senior to the ERDF. The Fund Manager will be required to invest at least 1 % of the Fund’s initial capital (£143m, assuming the EIB invests) from its own cash resources to ensure that their interests are aligned with those of the GLA’s.

Additional funding from other investors (including banks and other institutions), and/or project promoters of at least 260 000 000 GBP European company must be secured by the Fund Manager, at the underlying project levels and/ or, where possible, at Fund level. At least 60 % of the total additional funding secured should be from private sector sources. At least 43 000 000 GBP of additional funding secured must be eligible to be used as match funding for ERDF. It is envisaged that the duration of the contract with the Fund Manager, i.e. the winning tenderer, will be 20 years. The contract will specify an investment period which will terminate approximately 5 years from the point the contract is awarded to the Fund Manager and a post investment period which will commence from the end of the investment period and will end on the termination date of the contract i.e. 20 years from the commencement date of the contract. Please refer to section II.2.11 for information regarding options to extend.

Please refer to the procurement documents for a further description of the procurement, in particular the Specification document.

II.2.5)Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

II.2.6)Estimated value

Value excluding VAT: 25 000 000.00 EUR

II.2.7)Duration of the contract, framework agreement or dynamic purchasing system

Duration in months: 264
This contract is subject to renewal: no

II.2.9)Information about the limits on the number of candidates to be invited

Envisaged minimum number: 3
Maximum number: 4
Objective criteria for choosing the limited number of candidates:

Please refer to the procurement documents.

II.2.10)Information about variants

Variants will be accepted: no

II.2.11)Information about options

Options: yes
Description of options:

Options: The investment period may be extended by up to 2 years without a corresponding increase to the Fund’s life, with the agreement of the investors in the Fund if this does not result in any ERDF monies being invested beyond 31 December 2023. Separately, the life of the Fund may be extended for a period or periods which in total can extend the overall life of the Fund for 2 years giving the Fund a maximum term of 22 years, only with the consent of the investors in the Fund.

II.2.12)Information about electronic catalogues

II.2.13)Information about European Union funds

The procurement is related to a project and/or programme financed by European Union funds: yes
Identification of the project: European Regional Development Funds and European Investment Bank.
II.2.14)Additional information

Section III: Legal, economic, financial and technical information

III.1)Conditions for participation

III.1.1)Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions:

Bidders must be authorised by the Financial Conduct Authority (‘FCA’) as a full scope UK AIFM or a small authorised UK AIFM; or be a full scope EEA AIFM (as each of those terms is defined in the Alternative Fund Managers Regulations 2013 (SI 2013/1773). If not, Bidders will be required to confirm that they will have the relevant authorisations before contract award or will have appropriate arrangements with a regulatory hosting or umbrella organisation. Please see the procurement documents for more information and in particular regarding relying on a regulatory hosting or umbrella organisation for the authorisation.

III.1.2)Economic and financial standing

Selection criteria as stated in the procurement documents

III.1.3)Technical and professional ability

Selection criteria as stated in the procurement documents
III.1.5)Information about reserved contracts
III.2)Conditions related to the contract

III.2.1)Information about a particular profession

Execution of the service is reserved to a particular profession
Reference to the relevant law, regulation or administrative provision:

Please refer to section III.1.1 above.

III.2.2)Contract performance conditions:

Please refer to the procurement documents.

III.2.3)Information about staff responsible for the performance of the contract

Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract

Section IV: Procedure

IV.1)Description

IV.1.1)Type of procedure

Competitive dialogue
IV.1.3)Information about a framework agreement or a dynamic purchasing system
IV.1.4)Information about reduction of the number of solutions or tenders during negotiation or dialogue
IV.1.6)Information about electronic auction

IV.1.8)Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: yes
IV.2)Administrative information
IV.2.1)Previous publication concerning this procedure

IV.2.2)Time limit for receipt of tenders or requests to participate

Date: 05/01/2017
Local time: 12:00
IV.2.3)Estimated date of dispatch of invitations to tender or to participate to selected candidates

IV.2.4)Languages in which tenders or requests to participate may be submitted:

English

IV.2.6)Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of tender)
IV.2.7)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about electronic workflows

Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used

VI.3)Additional information:

The Contracting Authority (or the Greater London Authority (GLA)) has four ‘functional bodies’ (as defined by the section 424 of the GLA Act 1999) and the GLA and its functional bodies have a number of subsidiaries https://www.london.gov.uk/about-us.TfL is one of the functional bodies of the GLA and is leading the procurement on behalf of the GLA.

The Contract resulting from this procurement may be awarded by and/ or be for the benefit of the GLA, any of its subsidiaries and GLA functional bodies.

Responsible Procurement Policy: the GLA group has defined ‘responsible procurement’ as the purchase of goods, works and services in a socially and environmentally responsible way that delivers value for money and benefits to the Contracting Authority.

The Contracting Authority encourages their suppliers, and those companies interested in tendering for its contracts to undertake their activities in line with the principles contained in its Responsible Procurement Policy.

Further information on the GLA’s Responsible Procurement work can be obtained from the following web-site: www.london.gov.uk/rp

Tenderers will be required to agree to be audited by the UK audit bodies, the European Commission and the European Court of Auditors along with the funders and their auditors.

The Contracting Authority has decided that it is not appropriate to separate into Lots due to there being one Fund and the potential complexity of the legal structure of the arrangement between the Fund Manager and the GLA.

Investment projects should be within the borders of the Greater London Area (comprising 32 London Boroughs and the City of London,http://directory.londoncouncils.gov.uk/), However, this requirement may be relaxed with agreement from the GLA to include eligible Projects outside the Greater London Area but within the more developed regions (as defined by Article 90(2) of Common Provision Regulation (EU) N° 1303/2013) if the impact of the Project against, for example, the Output Targets of the Fund and/or wider London climate change objectives can be clearly demonstrated.

TfL and the Contracting Authority shall not be liable for any costs or expenses incurred by any bidder in connection with the completion and return of the information requested in this Contract Notice, or in the completion or submission of any tender or otherwise in connection with this procurement.

The Contracting Authority reserves the right to limit the number of areas open for dialogue. Further detail is set out in the tender documents.

Bidders who are not registered on TfL’s e-procurement system should register as a new supplier on TfL’s e- procurement system (http://eprocurement.tfl.gov.uk/epps/home.do). Any bidder that is already registered should log onto TfL’s e-procurement system. In order to locate the pre-qualification questionnaire on the system, bidders should search for *Fund* within the search facility which will locate this opportunity and the associated PQQ. Bidders should express their interest in the opportunity by completing and submitting the SQ by the deadline for receipt.

All discussions and meetings will be discussed in English. Tenders and supporting documentation must be priced in sterling and all payments under the contract will be in sterling.

If and when this requirement is offered to tender, it may be done in whole or part via electronic means using the Internet.

Please note that organisations interested in participating in this opportunity are invited to attend a briefing event being organised for 14 December 2016 at the GLA. Places must be pre-booked and are limited to a maximum of 2 people directly associated with the potential supplier. Organisations interested in attending the event must request details via the contact point in Section I.

The figure in II.1.5 and II.2.6 is an estimated fee based on the Fund size and ERDF match funding. The actual fee range will be based on bidder’s proposals as percentages against the fund size and investments.

VI.4)Procedures for review

VI.4.1)Review body

HM Courts and Tribunal Service
The Strand
London
WC2A 2LL
United Kingdom
Telephone: +44 207947000Internet address:https://www.gov.uk/government/organisations/hm-courts-and-tribunals-service
VI.4.2)Body responsible for mediation procedures

VI.4.3)Review procedure

Precise information on deadline(s) for review procedures:

The Contracting Authority will incorporate a minimum 10 calendar day standstill period at the time of the procurement process that information on the award of the contract is communicated to bidders. Aggrieved parties who consider they have been harmed or are at risk of harm should refer to the Public Contracts Regulations 2015.

VI.4.4)Service from which information about the review procedure may be obtained

VI.5)Date of dispatch of this notice:

23/11/2016

 

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