Metro procurement process is launched
A £5BN procurement process, which will see the winning bidder building the Metro transport project for South East Wales, has been launched.
The Welsh Government’s new transport body, Transport for Wales, is now seeking bids to design and construct the key phase of the integrated transport project - starting with electrification of the core Valley Lines.
The pubic sector contract, which is the biggest ever seen in Wales, is also to run the next Wales and Borders rail franchise from October 2018.
The lucrative contract has already generated international interest from potential bidders.
Transport for Wales is expected to confirm the successful bidder by the end of next year.
The £3bn to £5bn contract also leaves room for next phases of the Metro over the next 10 to 15 years across the core Valley Lines network and beyond, including new lines and stations.
It also consists of an annual Welsh Government subsidy to run the rail franchise, currently operated by Arriva Trains Wales. It presently runs at around £180m a year.
The rail franchise, although not yet formally transferred over by UK Government to Cardiff Bay, also includes some train services running across the border into England.
While each bidder will outline what type of rolling stock will run across the network in their respective bids, many industry experts anticipate that for the core Valley Lines a tram solution will emerge.
The deadline for bids is September 16.
It has already been confirmed that French transport giant Keolis and construction firm Amey will make a joint bid. The pair ar already running London’s Docklands Light Railway together.
Arriva Trains Wales could also join with a construction partner to bid.
And one of the world’s leading transport companies, Hong Kong-based MTR Corporation, has also confirmed its interest. It has appointed former commercial director of Arriva Trains Wales, CYNON Valley AM Vikki Howells has secured a public agreement from the Welsh Government that the headquarters of Transport for Wales will be located in the South Wales Valleys.
In making her request, the AM cited the importance of both projects to the South Wales Valleys and to her constituency of Cynon Valley in particular.
Responding, Cabinet Secretary for Economy and Infrastructure Ken Skates AM said: “It is my intention for Transport for Wales to be headquartered in the valleys, not least to demonstrate our belief Mike Bagshaw, as its bid director. So far, the Welsh Government has assigned £734m for Valley Lines electrification, which includes £125m of yet to be signed off European Union Funding.
The £734m is ringfenced as part of a £1.2bn City Deal for the Cardiff Capital Region - which covers the 10 local authorities of South East Wales. However, part of the remainder of the funding be allocated for further Metro projects, which in places will include rapid bus services.
Cabinet Secretary for Economy and Transport Ken Skates said: “The procurement is being designed so that we can deliver transformational Metro that the metro in South Wales should serve those communities that have often felt isolated.”
During the Cabinet Secretary’s statement, Ms Howells also spoke about reintroducing passenger services to Hirwaun and the need to ensure a better traveller experience under any new franchise.
“The metro project offers the opportunity to reconnect communities that have lost their public transport services,” she said.
“Like most colleagues representing Valleys constituencies, I receive frequent complaints about the inadequacies of Valleys lines services.” systems as part of a wider transport modernisation programme.
“The first step is to procure an operator and development partner that will deliver the outcomes we want to see from the next franchise and the Metro.
“Subject to a successful process, we will award the contract at the end of 2017.
“We will want to see bidders for the next franchise proposing innovative solutions to deliver improvements that are achievable within the infrastructure constraints and represent value for money for both tax and fare payers.
“Construction will take place from 2019 with services operating as soon as possible.”