Archived decisions

Contact: Steven Nicholson, tel 023 9284 1795

1. Summary

1.1 The purpose of this report is to inform the Panel of recent progress on the continued development of the South Hampshire Rapid Transit (SHRT1) project now that the procurement process timetable has commenced.

2. Joint Promoters

2.1 The County Council and Portsmouth City Council have now signed a contractual agreement with Partnerships UK (PUK) which makes all three parties co-promoters of the SHRT1 project. The agreement ensures PUK's involvement until the project reaches financial close.

2.2 The SHRT1 Procurement Board has delegated authority from the South Hampshire Rapid Transit Procurement Joint Panel, and forms a steering group for the project. The Procurement Board has met regularly since being formed in July 2001 and comprises senior staff of the two authorities and PUK.

3. Project Team

3.1 The SHRT 1 Project Director (Steve Nicholson) joined the Project Team on 5 November and the appointment of the technical team is now complete. This comprises two Technical Managers and a Land Use and Environmental Manager, the appointments for which were completed in September 2001 and the individuals are Peter Barty, Mike Gannon and Les Herbert respectively. These posts are supported by a project assistant, an administrative assistant and a project lawyer. A public relations officer is due to join the team in March 2002.

3.2 Land and Estates staff from the County Council and Portsmouth City Council have commenced negotiations for the acquisition of land and rights required to construct and operate SHRT1.

3.3 Additional internal staff resources will be drawn from the promoters' organisations, dealing in particular with Central Government public private partnership policy, local highway interface, urban design and landscape and financial issues.

3.4 The following consultants and advisers have been appointed to provide the specialist input required to deliver a successful Concession Agreement for SHRT1.

(i) Financial - Ernst and Young;

(ii) Legal - Dibb, Lupton and Allsop;

(iii) Technical - Parsons Brinckerhoff;

(iv) Insurance - AON; and

(v) Transport Economists - Steer, Davies and Gleave.

4. SHRT1 Project Office

4.1 On 22 October 2001 the new procurement phase of the SHRT1 project was marked by the relocation of the project office from Ashburton Court West in Winchester to the Mountbatten Gallery in Guildhall Square in Portsmouth. The office is part of Portsmouth City Council offices and is in an ideal location, as it is close to the alignment of the proposed SHRT1 scheme and in a convenient position for the public to visit. The Portsmouth office accommodates the Project Director and also has a meeting room, a data storage room, a reception area and office space for up to 12 staff.

5. Project Issues

Pre-qualification Process

5.1 In January 2002 the Office of Government Commerce (OGC) confirmed that SHRT1 preparation had reached a stage where the procurement competition could commence. In early February the SHRT1 procurement opportunity was advertised in the Official Journal of the European Communities (OJEC) and the private sector have until 25 March to register an interest. It is proposed to select four consortia that demonstrate technical and financial capacity, and have recent experience most suited to delivering the project objectives at best value.

Leeds Supertram Collaboration

5.2 SHRT1 is being procured in parallel with the West Yorkshire Public Transport Executive (WYPTE) Leeds Supertram scheme. The SHRT1 promoters have agreed to collaborate with the WYPTE so that each party gains from:

(i) coordination of the procurement timetable;

(ii) consistent presentation of light rapid transit to the market;

(iii) pooling resources in the development of the procurement documents and Concession Agreement; and

(iv) a consistent approach to the Department for Transport, Local Government and the Regions and OGC.

6. Programme

6.1 The key dates to keep the momentum and impetus of the project on course for completion by 2006/07 are detailed below.

Recommendation

That this report be noted.

7031/SN