Taking charge: Open tendering for EV charging concessions - webinar transcript 00:00:15.946 --> 00:00:16.907 Good afternoon, everyone. 00:00:18.088 --> 00:00:19.289 I'm Alex Georgiana, 00:00:19.768 --> 00:00:21.350 and I lead STEER's practice 00:00:21.649 --> 00:00:22.629 in the development and 00:00:22.670 --> 00:00:24.972 funding of electric vehicle 00:00:25.012 --> 00:00:26.091 charging infrastructure. 00:00:27.112 --> 00:00:29.474 I'll be your host for today's webinar. 00:00:30.655 --> 00:00:32.195 And we've got nearly a 00:00:32.234 --> 00:00:33.316 hundred people joining us 00:00:33.335 --> 00:00:35.017 today representing as many 00:00:35.057 --> 00:00:36.938 as forty local authorities. 00:00:38.037 --> 00:00:40.679 So why are we all here this afternoon? 00:00:40.719 --> 00:00:42.761 What's the topic for us to discuss? 00:00:43.716 --> 00:00:43.877 Well, 00:00:44.758 --> 00:00:46.598 the pace at which local government 00:00:46.618 --> 00:00:48.359 authorities are attracting 00:00:48.420 --> 00:00:50.000 private investment to their 00:00:50.161 --> 00:00:53.262 EV charging projects has fallen behind. 00:00:54.584 --> 00:00:56.625 While OSEV had directed its 00:00:56.685 --> 00:00:58.926 Levi grantees to engage 00:00:59.006 --> 00:01:00.508 dynamic purchasing systems, 00:01:01.768 --> 00:01:03.869 Those frameworks are now 00:01:03.969 --> 00:01:05.930 widely understood to be out 00:01:05.990 --> 00:01:07.290 of compliance with 00:01:07.331 --> 00:01:09.272 procurement legislation and 00:01:09.311 --> 00:01:10.933 therefore not appropriate 00:01:11.272 --> 00:01:12.554 for establishing the 00:01:12.593 --> 00:01:13.713 regulated concession 00:01:13.733 --> 00:01:17.135 contracts by which LAs will 00:01:17.176 --> 00:01:18.456 secure investment. 00:01:19.876 --> 00:01:21.817 The existing pre-Brexit 00:01:21.858 --> 00:01:24.159 rules were to be replaced 00:01:24.418 --> 00:01:26.459 with revised UK legislation 00:01:27.260 --> 00:01:28.081 later next month. 00:01:29.281 --> 00:01:31.402 However, we learned last week that that 00:01:31.808 --> 00:01:33.990 enactment of those rules has 00:01:34.031 --> 00:01:35.792 now been postponed until 00:01:35.831 --> 00:01:37.632 February of next year. 00:01:38.513 --> 00:01:41.876 In this confusing regulatory environment, 00:01:42.757 --> 00:01:44.578 anxious local authorities 00:01:45.078 --> 00:01:47.140 sponsoring public EV 00:01:47.180 --> 00:01:49.340 charging projects are 00:01:49.441 --> 00:01:50.862 understandably hesitant, 00:01:51.722 --> 00:01:53.364 determined to take their 00:01:53.424 --> 00:01:55.885 projects to market so as to 00:01:56.046 --> 00:01:58.128 secure their commercial and 00:01:58.207 --> 00:01:59.668 service delivery objectives, 00:02:00.563 --> 00:02:02.283 and demonstrate compliance 00:02:02.602 --> 00:02:03.403 with regulation. 00:02:04.804 --> 00:02:07.304 Today, I'll be joined by Jonathan Crowley, 00:02:07.844 --> 00:02:09.485 a partner within the 00:02:09.504 --> 00:02:13.645 commercial team of Ashford's LLP. 00:02:13.686 --> 00:02:14.526 And we're going to talk 00:02:14.545 --> 00:02:16.186 about the process by which 00:02:16.265 --> 00:02:17.747 local authorities attract 00:02:17.826 --> 00:02:19.706 private investment to the 00:02:19.747 --> 00:02:22.087 development of public EV 00:02:22.127 --> 00:02:23.187 charging infrastructure. 00:02:24.587 --> 00:02:25.748 We do this for local 00:02:25.788 --> 00:02:27.188 authorities across the country, 00:02:27.710 --> 00:02:28.669 and we'll share our 00:02:28.770 --> 00:02:30.471 insights as to how to 00:02:30.591 --> 00:02:32.912 re-accelerate the pace at 00:02:32.951 --> 00:02:37.814 which the UK embraces electric vehicles. 00:02:37.875 --> 00:02:39.256 We're going to keep this brief. 00:02:40.036 --> 00:02:40.676 You're welcome. 00:02:41.776 --> 00:02:42.356 And there will be 00:02:42.418 --> 00:02:44.277 opportunities for questions afterwards. 00:02:45.239 --> 00:02:46.520 To pose a question, 00:02:47.039 --> 00:02:50.021 click the join the chat button, 00:02:50.141 --> 00:02:50.741 enter your name, 00:02:51.806 --> 00:02:53.205 And a chat box will open 00:02:53.485 --> 00:02:55.067 where you can type in your question. 00:02:55.586 --> 00:02:56.606 We'll address as many of 00:02:56.627 --> 00:03:00.487 those at the end as we can. 00:03:00.508 --> 00:03:01.888 The development of charging 00:03:02.027 --> 00:03:05.587 infrastructure projects matters. 00:03:05.608 --> 00:03:07.209 Between the first lockdown 00:03:07.829 --> 00:03:09.709 and the end of twenty twenty two, 00:03:10.688 --> 00:03:12.669 the penetration of EVs 00:03:12.849 --> 00:03:14.490 within all new car 00:03:14.509 --> 00:03:16.930 registrations rocketed from 00:03:17.009 --> 00:03:18.670 single digits up to about 00:03:18.950 --> 00:03:19.890 twenty five percent. 00:03:21.633 --> 00:03:22.432 But since then, 00:03:23.373 --> 00:03:24.675 in the five quarters ending 00:03:24.715 --> 00:03:26.094 in Q one of this year, 00:03:27.496 --> 00:03:29.037 that growth in EV 00:03:29.076 --> 00:03:30.698 penetration has plateaued 00:03:31.217 --> 00:03:33.199 at about that twenty five percent figure. 00:03:34.639 --> 00:03:35.060 Of course, 00:03:35.319 --> 00:03:37.381 there are many factors impacting 00:03:37.760 --> 00:03:38.502 EV uptake, 00:03:39.062 --> 00:03:40.162 and I wrote about a number of 00:03:40.181 --> 00:03:41.622 those factors earlier this 00:03:41.682 --> 00:03:43.644 week in our Voices of STEER 00:03:43.663 --> 00:03:45.925 blog that you can find on LinkedIn. 00:03:47.306 --> 00:03:48.467 But a slowdown in the 00:03:48.486 --> 00:03:50.026 development of public EV 00:03:50.067 --> 00:03:51.087 charging resources 00:03:51.532 --> 00:03:53.854 can't help. 00:03:53.914 --> 00:03:55.096 Within the public sector, 00:03:55.376 --> 00:03:56.836 there is now a significant 00:03:56.877 --> 00:03:58.739 backlog of subsidized and 00:03:58.899 --> 00:04:00.980 unsubsidized EV development 00:04:01.020 --> 00:04:03.763 projects seeking private investment. 00:04:05.344 --> 00:04:06.786 Perhaps the biggest driver 00:04:06.806 --> 00:04:08.426 for this backlog has been 00:04:08.486 --> 00:04:09.568 uncertainty within the 00:04:09.608 --> 00:04:11.650 councils around what good 00:04:11.689 --> 00:04:13.050 tendering for private 00:04:13.070 --> 00:04:14.151 investment looks like. 00:04:15.996 --> 00:04:18.156 As we move to a net zero future, 00:04:18.596 --> 00:04:21.336 delays of any kind are rarely helpful. 00:04:21.877 --> 00:04:23.237 But this backlog of 00:04:23.276 --> 00:04:24.858 commercially viable projects, 00:04:24.918 --> 00:04:25.798 I should say otherwise 00:04:25.838 --> 00:04:27.317 commercially viable projects, 00:04:27.918 --> 00:04:29.119 is not without impact. 00:04:30.579 --> 00:04:32.319 It jeopardizes the visible 00:04:32.358 --> 00:04:33.920 supply of public chargers 00:04:34.139 --> 00:04:35.699 along the road that can 00:04:35.740 --> 00:04:37.240 provide comfort to those 00:04:37.259 --> 00:04:38.961 consumers who are now 00:04:39.180 --> 00:04:40.841 considering an electric vehicle. 00:04:42.098 --> 00:04:43.540 It jeopardizes the ability 00:04:43.600 --> 00:04:45.420 of overstressed and 00:04:45.461 --> 00:04:47.362 temporarily under-engaged 00:04:47.442 --> 00:04:49.584 charge point operators to 00:04:49.644 --> 00:04:50.524 turn their businesses 00:04:50.564 --> 00:04:52.305 around quickly and resume 00:04:52.627 --> 00:04:53.927 effectively addressing 00:04:54.367 --> 00:04:55.509 investment opportunities. 00:04:56.408 --> 00:04:57.089 Here at Steer, 00:04:57.110 --> 00:04:58.430 we've noticed a number of 00:04:58.690 --> 00:05:01.692 CPOs laying off staff over 00:05:01.713 --> 00:05:03.514 the past several months in 00:05:03.555 --> 00:05:04.896 their effort to preserve 00:05:05.136 --> 00:05:06.697 capital for investment. 00:05:08.223 --> 00:05:09.302 But most worryingly, 00:05:09.702 --> 00:05:11.004 and with an eye towards 00:05:11.084 --> 00:05:13.225 next month's budget announcement, 00:05:14.225 --> 00:05:15.925 this backlog of, again, 00:05:16.024 --> 00:05:18.346 otherwise commercially 00:05:18.386 --> 00:05:19.766 viable charging projects 00:05:20.646 --> 00:05:21.966 may influence government's 00:05:22.007 --> 00:05:24.108 perspective on continuing 00:05:24.348 --> 00:05:25.908 public support for our 00:05:25.988 --> 00:05:29.970 national EV transition. 00:05:30.110 --> 00:05:32.129 A smooth transition to an 00:05:32.189 --> 00:05:33.471 electric vehicle future 00:05:34.130 --> 00:05:35.290 requires numerous 00:05:35.331 --> 00:05:37.252 stakeholders to move forward as one. 00:05:38.499 --> 00:05:40.579 Levi is specifically crafted 00:05:40.620 --> 00:05:42.480 to accelerate the pace of 00:05:42.521 --> 00:05:44.702 charger development to seed 00:05:45.182 --> 00:05:46.863 faster uptake of electric 00:05:46.884 --> 00:05:47.925 vehicles themselves. 00:05:49.245 --> 00:05:50.887 A slowdown in the pace by 00:05:50.927 --> 00:05:52.728 which subsidy attracts 00:05:52.788 --> 00:05:54.468 private investment makes 00:05:54.528 --> 00:05:56.629 that EV transition just a 00:05:56.649 --> 00:05:58.591 little bit harder. 00:05:58.610 --> 00:06:01.213 But the work of Stier and 00:06:01.312 --> 00:06:03.994 Ashford's brings clarity to 00:06:04.074 --> 00:06:05.975 uncertainty in helping 00:06:06.096 --> 00:06:08.057 local authorities deliver progress. 00:06:10.168 --> 00:06:12.048 In anticipation of today's webinar, 00:06:12.449 --> 00:06:14.129 my colleague Elaine Meske, 00:06:14.730 --> 00:06:16.091 who works with me in our EV 00:06:16.130 --> 00:06:17.250 practice here at STEER, 00:06:18.091 --> 00:06:20.351 spent some time talking with Paul Bragg, 00:06:21.093 --> 00:06:22.333 the Highways and Network 00:06:22.372 --> 00:06:24.613 Manager for the London Borough of Barnet. 00:06:25.935 --> 00:06:26.894 Under Paul's direction, 00:06:27.355 --> 00:06:28.815 Barnet will soon have over 00:06:28.875 --> 00:06:30.076 two thousand chargers, 00:06:30.557 --> 00:06:31.317 making it one of the 00:06:31.357 --> 00:06:32.798 largest networks in the country. 00:06:34.110 --> 00:06:35.370 And while Paul couldn't be 00:06:35.389 --> 00:06:36.391 with us this afternoon, 00:06:36.750 --> 00:06:38.790 he works at the coalface of 00:06:38.850 --> 00:06:40.711 electric vehicle charging infrastructure, 00:06:41.271 --> 00:06:43.232 untangling the web of commercial, 00:06:43.732 --> 00:06:44.312 technical, 00:06:44.692 --> 00:06:46.833 and financial imperatives to 00:06:46.892 --> 00:06:48.353 make charge points just 00:06:48.434 --> 00:06:52.134 work for thirsty EV drivers. 00:06:52.154 --> 00:06:53.254 Let's go to the interview 00:06:53.615 --> 00:06:54.535 and then we'll come back 00:06:54.555 --> 00:06:55.896 and talk more about this 00:06:55.975 --> 00:06:58.055 critical path in tendering 00:06:58.396 --> 00:07:01.317 for private investment. 00:07:01.377 --> 00:07:01.617 Hello. 00:07:02.139 --> 00:07:03.500 My name is Elaine Meskey. 00:07:03.620 --> 00:07:05.762 I'm a Principal Consultant here at STEER. 00:07:06.081 --> 00:07:07.744 I work in Zero Emission 00:07:07.783 --> 00:07:08.904 Vehicle Infrastructure. 00:07:09.564 --> 00:07:11.706 I am joined today by Paul Bragg. 00:07:11.966 --> 00:07:12.166 Paul, 00:07:12.206 --> 00:07:14.149 would you like to introduce yourself? 00:07:14.228 --> 00:07:15.750 Hi everybody, I'm Paul Bragg. 00:07:15.971 --> 00:07:17.252 I'm the Head of Network and 00:07:17.271 --> 00:07:18.833 Infrastructure for Barnet Council. 00:07:20.634 --> 00:07:22.055 One part of my role is I'm 00:07:22.115 --> 00:07:24.576 responsible for policy and 00:07:24.896 --> 00:07:26.278 rollout of EV charge points 00:07:26.759 --> 00:07:27.879 and that's something that 00:07:28.581 --> 00:07:30.862 we are very focused on at 00:07:30.882 --> 00:07:32.343 the moment and working 00:07:32.384 --> 00:07:34.285 through a number of projects. 00:07:34.985 --> 00:07:36.166 Barnet Council are fast 00:07:36.206 --> 00:07:37.487 approaching two thousand 00:07:37.528 --> 00:07:39.389 chargers installed and Paul 00:07:39.430 --> 00:07:40.651 has led these initiatives 00:07:40.711 --> 00:07:41.490 and worked with five 00:07:41.511 --> 00:07:42.411 different charge point 00:07:42.471 --> 00:07:44.473 operators for the rollout 00:07:44.494 --> 00:07:45.855 of different types of charge points. 00:07:46.454 --> 00:07:46.956 So Paul, 00:07:47.334 --> 00:07:48.495 Let me start with the 00:07:48.535 --> 00:07:49.636 hottest topic of the year, 00:07:50.216 --> 00:07:51.735 the year that the industry 00:07:51.755 --> 00:07:52.776 has learned that there is 00:07:52.877 --> 00:07:54.396 limited scope for use of 00:07:54.476 --> 00:07:56.098 frameworks and DPSs in 00:07:56.137 --> 00:07:58.278 concession contracts for EV 00:07:58.338 --> 00:07:58.959 infrastructure. 00:07:59.678 --> 00:08:01.040 Open tenders are now deemed 00:08:01.060 --> 00:08:01.920 to be the way forward, 00:08:01.980 --> 00:08:03.781 particularly after the Procurement Act. 00:08:04.081 --> 00:08:05.120 Twenty twenty three goes 00:08:05.180 --> 00:08:06.922 live later this October. 00:08:07.482 --> 00:08:09.141 But what are the challenges 00:08:09.641 --> 00:08:11.283 that open tenders present 00:08:11.322 --> 00:08:12.583 to councils and 00:08:12.603 --> 00:08:13.564 particularly those councils 00:08:13.584 --> 00:08:15.283 that are earlier on in EV 00:08:15.423 --> 00:08:16.985 uptake and infrastructure development? 00:08:17.995 --> 00:08:19.875 That certainly is a 00:08:19.956 --> 00:08:20.935 challenge for the future. 00:08:21.896 --> 00:08:24.317 Now we know that DPSs are 00:08:24.338 --> 00:08:26.019 not really suitable for 00:08:26.139 --> 00:08:27.519 concession style contracts, 00:08:27.579 --> 00:08:28.519 which are the types of 00:08:28.560 --> 00:08:29.680 contracts that generally 00:08:30.339 --> 00:08:31.300 local authorities are now 00:08:31.341 --> 00:08:32.321 looking to roll out. 00:08:33.802 --> 00:08:35.863 The open procedure is really 00:08:36.503 --> 00:08:37.443 the new go-to. 00:08:37.984 --> 00:08:40.424 It's not something that many 00:08:40.465 --> 00:08:41.485 local authorities have a 00:08:41.884 --> 00:08:43.206 great deal of experience with, 00:08:43.245 --> 00:08:45.287 certainly not in the EV marketplace. 00:08:46.152 --> 00:08:48.893 So there's a fair bit more 00:08:48.952 --> 00:08:50.653 work involved in terms of 00:08:51.254 --> 00:08:52.053 putting together your 00:08:52.094 --> 00:08:54.835 documentation rather than 00:08:55.315 --> 00:08:56.515 using a DPS where a lot of 00:08:56.535 --> 00:08:57.576 that documentation is 00:08:57.635 --> 00:08:59.517 prepared in advance and 00:08:59.537 --> 00:09:00.697 then is adaptable. 00:09:01.336 --> 00:09:03.357 So starting from scratch is 00:09:03.378 --> 00:09:04.337 a much bigger task. 00:09:04.938 --> 00:09:06.058 There is obviously the risk 00:09:06.418 --> 00:09:07.639 of getting things wrong. 00:09:09.220 --> 00:09:11.041 And certainly from our point of view, 00:09:11.961 --> 00:09:14.182 we feel that it's been really important 00:09:14.946 --> 00:09:16.586 whilst we engage internally 00:09:16.666 --> 00:09:18.167 with our procurement teams 00:09:18.267 --> 00:09:21.087 and our legal teams to get advice, 00:09:21.868 --> 00:09:24.548 this is a new market to them. 00:09:24.729 --> 00:09:26.188 It's not something that they 00:09:26.208 --> 00:09:27.149 have experience in. 00:09:27.889 --> 00:09:28.830 There's been a little bit of 00:09:28.870 --> 00:09:30.490 reluctance at Barnet to 00:09:30.570 --> 00:09:32.770 actually give that advice. 00:09:32.811 --> 00:09:34.770 So we have been pushed to 00:09:34.910 --> 00:09:36.392 look for external support 00:09:37.052 --> 00:09:38.292 and to find where we can 00:09:38.331 --> 00:09:39.511 get that support from. 00:09:39.652 --> 00:09:40.852 So we've been to 00:09:42.374 --> 00:09:44.054 a legal firm who specialises 00:09:44.154 --> 00:09:45.215 in procurement, 00:09:46.176 --> 00:09:48.136 who have helped us to draft 00:09:48.157 --> 00:09:50.158 the contract clauses for 00:09:50.359 --> 00:09:51.298 that open tender. 00:09:52.821 --> 00:09:53.801 And we're aware that there 00:09:53.860 --> 00:09:55.182 are other consultancies out 00:09:55.201 --> 00:09:57.303 there that specialise in 00:09:57.323 --> 00:09:58.663 this area and can give 00:09:58.703 --> 00:10:00.586 local authorities support. 00:10:00.605 --> 00:10:02.626 So we've certainly 00:10:04.614 --> 00:10:06.014 not wanting to take that 00:10:06.115 --> 00:10:08.376 risk by using internal 00:10:08.437 --> 00:10:10.639 resources that don't really 00:10:10.678 --> 00:10:12.720 have the skills to be able 00:10:12.780 --> 00:10:15.543 to support us and make sure 00:10:15.582 --> 00:10:16.724 that we utilise the 00:10:17.624 --> 00:10:18.524 resources that are out 00:10:18.565 --> 00:10:19.865 there who specialise in 00:10:19.905 --> 00:10:21.086 this area that can make 00:10:21.106 --> 00:10:23.389 sure that we get things right. 00:10:23.408 --> 00:10:25.129 And just to drill down on that, 00:10:25.190 --> 00:10:26.630 you've spoken about legal 00:10:26.691 --> 00:10:29.072 expertise with the procurement regulation, 00:10:29.453 --> 00:10:30.333 but there's probably 00:10:30.354 --> 00:10:31.154 another element to the 00:10:31.195 --> 00:10:33.517 success in EVI development. 00:10:34.524 --> 00:10:35.125 perhaps yourselves and 00:10:35.144 --> 00:10:36.365 Barnett have this in-house 00:10:36.385 --> 00:10:37.427 because of your history of 00:10:37.466 --> 00:10:38.947 charger rollout and the 00:10:38.988 --> 00:10:40.248 CPOs you've worked with, 00:10:40.347 --> 00:10:40.989 but is there 00:10:41.089 --> 00:10:42.529 industry-specific knowledge 00:10:43.289 --> 00:10:44.591 that you need to help 00:10:44.630 --> 00:10:45.672 develop the objectives and 00:10:45.711 --> 00:10:49.594 specifications for EVI development? 00:10:49.693 --> 00:10:50.433 I think that very much 00:10:50.474 --> 00:10:54.197 depends on each local authority. 00:10:54.537 --> 00:10:56.337 We've done quite a lot in this space now. 00:10:57.399 --> 00:11:00.620 We have dedicated resources working on EV, 00:11:00.639 --> 00:11:03.121 so we're in a quite lucky position that 00:11:04.590 --> 00:11:07.032 We feel that we know what 00:11:07.052 --> 00:11:08.592 our policy is set out to 00:11:08.653 --> 00:11:11.035 achieve and we know how we 00:11:11.056 --> 00:11:12.456 could write the technical 00:11:12.496 --> 00:11:14.057 specification to achieve that. 00:11:15.198 --> 00:11:16.299 But as I say, 00:11:16.440 --> 00:11:18.743 the procurement and the legal 00:11:19.263 --> 00:11:20.965 side of things is where we 00:11:21.004 --> 00:11:21.924 needed to support. 00:11:23.046 --> 00:11:23.427 However, 00:11:23.567 --> 00:11:25.548 I am aware that there's a lot of 00:11:25.568 --> 00:11:26.769 local authorities out there 00:11:28.442 --> 00:11:29.462 probably haven't got that 00:11:29.523 --> 00:11:31.543 expertise in-house in terms 00:11:31.604 --> 00:11:34.166 of the market research that 00:11:34.186 --> 00:11:35.566 we've done on EV and the 00:11:35.605 --> 00:11:36.586 learnings that we've got 00:11:36.606 --> 00:11:38.488 from what we've done to date. 00:11:38.508 --> 00:11:39.849 So again, 00:11:41.049 --> 00:11:43.311 I think it is wise for local 00:11:43.331 --> 00:11:43.991 authorities in that 00:11:44.032 --> 00:11:46.173 position to seek advice 00:11:46.753 --> 00:11:48.975 externally from those who 00:11:49.054 --> 00:11:50.095 are specialising or have 00:11:50.174 --> 00:11:53.597 done a lot more in this space. 00:11:53.638 --> 00:11:54.798 When we work with clients 00:11:54.878 --> 00:11:56.219 who are wanting to tender 00:11:56.239 --> 00:11:57.259 for charging infrastructure, 00:11:57.734 --> 00:11:58.815 our service offer includes 00:11:58.855 --> 00:12:00.136 financial forecasting to 00:12:00.177 --> 00:12:01.498 validate the business case 00:12:01.518 --> 00:12:02.759 and investment opportunity 00:12:02.980 --> 00:12:03.921 for the different parties. 00:12:04.822 --> 00:12:05.883 Ensuring the deal being 00:12:05.903 --> 00:12:07.083 presented as attractive to 00:12:07.144 --> 00:12:08.225 private investors and the 00:12:08.265 --> 00:12:10.427 service providers is critical, 00:12:10.648 --> 00:12:11.568 particularly as we don't 00:12:11.629 --> 00:12:12.590 anticipate much more 00:12:12.610 --> 00:12:14.491 government funding beyond Levi. 00:12:15.192 --> 00:12:16.794 Paul, what are your thoughts on that? 00:12:16.815 --> 00:12:18.657 Do you agree or not with that statement? 00:12:20.187 --> 00:12:22.349 Yeah, I think it's quite crucial, actually, 00:12:22.389 --> 00:12:24.910 that if you're going to do 00:12:24.990 --> 00:12:26.192 all of the work and go 00:12:26.231 --> 00:12:27.392 through all the expenditure 00:12:27.471 --> 00:12:28.673 of putting a tender out, 00:12:29.874 --> 00:12:30.714 what you obviously want to 00:12:30.754 --> 00:12:31.914 achieve is a lot of 00:12:31.975 --> 00:12:34.035 interest and competition. 00:12:34.616 --> 00:12:36.778 So receiving a number of 00:12:37.538 --> 00:12:38.839 competitive tenders back. 00:12:40.080 --> 00:12:40.840 So, yeah, 00:12:40.899 --> 00:12:42.280 what you put to market has to be 00:12:42.321 --> 00:12:43.881 attractive to the market. 00:12:45.143 --> 00:12:45.602 And if that 00:12:46.013 --> 00:12:47.114 legwork has been done up 00:12:47.153 --> 00:12:48.835 front so that you can show 00:12:49.054 --> 00:12:51.496 the market that there has 00:12:51.517 --> 00:12:53.018 been some due diligence 00:12:53.057 --> 00:12:54.659 done and that the sites 00:12:54.840 --> 00:12:56.160 that are being proposed are 00:12:57.140 --> 00:12:58.022 potentially viable, 00:12:58.062 --> 00:12:59.543 then that will certainly 00:12:59.582 --> 00:13:00.683 help with the interest with 00:13:00.703 --> 00:13:03.005 the marketplace and should 00:13:03.025 --> 00:13:03.985 be good for the competition. 00:13:05.467 --> 00:13:06.327 In some cases, 00:13:06.628 --> 00:13:08.210 we can work our fee for 00:13:08.289 --> 00:13:09.289 transaction advisory 00:13:09.309 --> 00:13:10.772 services into the deal or 00:13:10.812 --> 00:13:11.772 transaction itself. 00:13:12.312 --> 00:13:13.594 Can you tell me if and why 00:13:13.634 --> 00:13:14.594 this might be attractive to 00:13:14.634 --> 00:13:15.355 local authorities? 00:13:17.028 --> 00:13:17.188 Yeah, 00:13:17.208 --> 00:13:18.429 I certainly think that's a great 00:13:19.110 --> 00:13:20.692 unique offer because one of 00:13:20.731 --> 00:13:21.552 the things that local 00:13:21.631 --> 00:13:24.354 authorities tend to do is 00:13:24.414 --> 00:13:26.015 to pursue procurements 00:13:26.035 --> 00:13:27.017 without actually setting a 00:13:27.076 --> 00:13:29.177 budget and realising how 00:13:29.217 --> 00:13:30.239 much a procurement is 00:13:30.278 --> 00:13:31.080 actually going to cost. 00:13:32.256 --> 00:13:33.778 So not having to worry about 00:13:34.158 --> 00:13:35.179 setting a budget and 00:13:35.399 --> 00:13:36.321 worrying about the 00:13:36.360 --> 00:13:37.722 financing of the 00:13:37.763 --> 00:13:41.245 procurement is very positive, 00:13:41.927 --> 00:13:43.048 knowing that there is 00:13:43.388 --> 00:13:45.129 another way to actually fund it. 00:13:45.149 --> 00:13:46.370 So I think, yeah, 00:13:47.032 --> 00:13:48.133 that service offering that 00:13:48.153 --> 00:13:49.394 you've spoken to me about 00:13:49.573 --> 00:13:51.556 is certainly attractive to 00:13:51.696 --> 00:13:53.378 us and I'm sure should be 00:13:53.398 --> 00:13:54.519 attractive to our local 00:13:54.538 --> 00:13:55.299 authorities as well. 00:14:00.950 --> 00:14:02.831 Well, thanks Elaine and thanks Paul. 00:14:02.871 --> 00:14:04.413 And I think I should note 00:14:04.452 --> 00:14:06.754 that the legal consultant 00:14:06.815 --> 00:14:07.816 that Paul engaged for 00:14:07.855 --> 00:14:09.057 Barnett was in fact 00:14:09.597 --> 00:14:10.979 Jonathan Crowley of Ashford. 00:14:10.999 --> 00:14:13.581 So we're in good company here today. 00:14:13.782 --> 00:14:14.302 In summary, 00:14:14.341 --> 00:14:16.464 Paul talked about how open 00:14:16.504 --> 00:14:17.544 tendering will be a 00:14:17.585 --> 00:14:18.485 challenge for many 00:14:18.525 --> 00:14:20.467 authorities who may also 00:14:20.508 --> 00:14:21.989 need technical advice in 00:14:22.028 --> 00:14:24.490 scoping demand and in 00:14:24.551 --> 00:14:26.373 developing investable projects. 00:14:27.253 --> 00:14:29.033 A successful tender requires 00:14:29.092 --> 00:14:31.234 proper due diligence around that demand, 00:14:31.774 --> 00:14:32.874 the financial return and 00:14:32.894 --> 00:14:34.494 the business case that will 00:14:34.533 --> 00:14:35.514 attract investment. 00:14:36.195 --> 00:14:36.735 And finally, 00:14:37.174 --> 00:14:38.894 some cash strapped authorities 00:14:38.955 --> 00:14:39.855 may appreciate the 00:14:39.916 --> 00:14:42.155 opportunity to fund some of 00:14:42.176 --> 00:14:43.336 the procurement costs 00:14:43.696 --> 00:14:47.317 against the deal itself. 00:14:47.336 --> 00:14:48.817 The most common business 00:14:48.836 --> 00:14:50.077 structure for the 00:14:50.118 --> 00:14:51.518 development of public 00:14:51.538 --> 00:14:53.158 charging sponsored by the 00:14:53.177 --> 00:14:55.639 local authority is one in 00:14:55.678 --> 00:14:57.058 which the local authority 00:14:57.505 --> 00:14:58.866 deploys real estate and 00:14:58.907 --> 00:15:00.648 other resources in a 00:15:00.707 --> 00:15:02.009 well-developed business 00:15:02.028 --> 00:15:04.091 case to which it attracts 00:15:04.150 --> 00:15:05.072 private investment. 00:15:06.091 --> 00:15:07.994 Though referred to as procurement, 00:15:08.833 --> 00:15:09.934 tendering for private 00:15:09.975 --> 00:15:11.355 investment isn't buying. 00:15:12.057 --> 00:15:12.636 Instead, 00:15:12.897 --> 00:15:14.859 it's the selling of an investment 00:15:14.899 --> 00:15:18.461 opportunity that satisfies 00:15:18.721 --> 00:15:20.143 emerging driver demand, 00:15:21.003 --> 00:15:22.484 that derives incremental 00:15:22.524 --> 00:15:25.447 value from public resources deployed, 00:15:26.567 --> 00:15:27.969 that yields to attract 00:15:28.229 --> 00:15:30.909 private investment all in 00:15:30.950 --> 00:15:32.471 compliance with procurement 00:15:32.671 --> 00:15:35.413 legislation the process we 00:15:35.472 --> 00:15:36.732 typically see has two 00:15:36.793 --> 00:15:38.474 elements and jonathan and I 00:15:38.494 --> 00:15:39.554 will talk them through here 00:15:41.456 --> 00:15:42.336 in the pre-market 00:15:42.375 --> 00:15:44.537 engagement the sponsoring 00:15:44.736 --> 00:15:46.597 la develops the 00:15:46.638 --> 00:15:48.239 commercially viable project 00:15:48.379 --> 00:15:50.700 that attracts investment in 00:15:50.740 --> 00:15:51.421 the first step 00:15:52.616 --> 00:15:54.597 It's a robust identification 00:15:55.018 --> 00:15:56.639 of emerging demand for 00:15:56.739 --> 00:15:58.538 energy and infrastructure, 00:15:59.219 --> 00:16:02.500 itself a function of increasing EV uptake, 00:16:03.120 --> 00:16:05.942 which is compelled by the ZEV mandate. 00:16:07.022 --> 00:16:07.383 Second, 00:16:07.663 --> 00:16:09.863 that projected demand must be 00:16:09.923 --> 00:16:11.043 converted into a 00:16:11.104 --> 00:16:12.845 comprehensive financial model, 00:16:13.465 --> 00:16:15.826 identifying costs of the project, 00:16:16.505 --> 00:16:18.307 revenue from electricity sales, 00:16:18.706 --> 00:16:19.986 and ultimately the free 00:16:20.027 --> 00:16:22.087 cash flow that validates investments. 00:16:23.089 --> 00:16:23.448 Next, 00:16:23.629 --> 00:16:25.390 a business case must define the 00:16:25.431 --> 00:16:26.630 structure of the business, 00:16:27.131 --> 00:16:28.312 the roles of the local 00:16:28.352 --> 00:16:30.413 authority and private investors, 00:16:31.053 --> 00:16:32.755 and the allocation of value 00:16:32.816 --> 00:16:33.796 to both parties. 00:16:34.557 --> 00:16:35.216 And finally, 00:16:35.878 --> 00:16:38.198 all this can be summarized in 00:16:38.239 --> 00:16:39.940 a compelling prospectus 00:16:40.480 --> 00:16:42.942 that concisely defines the 00:16:42.982 --> 00:16:46.524 opportunity for prospective investors. 00:16:46.544 --> 00:16:47.044 Jonathan, 00:16:47.225 --> 00:16:47.905 I've gone through the 00:16:47.946 --> 00:16:49.466 pre-engagement portion, 00:16:49.947 --> 00:16:50.687 but I wondered if you'd 00:16:50.727 --> 00:16:52.389 talk more about the market engagement. 00:16:54.076 --> 00:16:54.515 Of course. 00:16:54.615 --> 00:16:55.096 Thank you. 00:16:55.176 --> 00:16:57.317 Thank you, Alex. 00:16:57.657 --> 00:16:58.336 At Ashford, 00:16:58.517 --> 00:16:59.716 we're currently advising a 00:16:59.777 --> 00:17:00.937 number of local authorities 00:17:00.996 --> 00:17:02.437 on their EV procurements, 00:17:03.597 --> 00:17:04.337 a number of which are 00:17:04.377 --> 00:17:05.417 currently out to market. 00:17:05.458 --> 00:17:06.438 So they're thoroughly into 00:17:06.458 --> 00:17:07.959 that market engagement stage. 00:17:08.578 --> 00:17:09.778 And some are just entering 00:17:09.838 --> 00:17:10.939 into that market engagement 00:17:10.959 --> 00:17:13.319 stage just prior to publishing. 00:17:13.880 --> 00:17:14.160 And of course, 00:17:14.180 --> 00:17:14.740 there are a couple of 00:17:14.779 --> 00:17:16.641 projects that are close to 00:17:16.661 --> 00:17:17.421 getting their final 00:17:17.461 --> 00:17:20.300 approval through the OSEV program board. 00:17:21.961 --> 00:17:23.821 So as Alex mentioned, 00:17:25.022 --> 00:17:26.345 Local authority procurement 00:17:26.865 --> 00:17:28.666 is a highly regulated area 00:17:29.268 --> 00:17:30.970 and a failure to comply 00:17:30.990 --> 00:17:32.652 with the relevant rules can 00:17:32.692 --> 00:17:34.294 lead to the local authority 00:17:34.534 --> 00:17:36.256 facing a procurement challenge. 00:17:37.159 --> 00:17:38.038 And the problem with a 00:17:38.078 --> 00:17:39.078 procurement challenge for 00:17:39.098 --> 00:17:40.859 their two main problems, first, 00:17:40.900 --> 00:17:41.720 they can result in a 00:17:41.779 --> 00:17:43.240 financial liability to the 00:17:43.279 --> 00:17:44.079 local authority. 00:17:44.640 --> 00:17:47.181 And secondly, they can delay the project, 00:17:48.381 --> 00:17:49.060 especially if the 00:17:49.101 --> 00:17:51.021 procurement process needs to be rerun. 00:17:51.561 --> 00:17:51.981 And of course, 00:17:52.001 --> 00:17:53.422 that has then a knock-on 00:17:53.481 --> 00:17:54.481 consequence for those 00:17:54.521 --> 00:17:56.123 projects that are grant funded, 00:17:56.182 --> 00:17:57.163 because the grant funding 00:17:57.202 --> 00:17:58.782 bodies will typically set 00:17:58.883 --> 00:18:01.003 out specific deadlines by 00:18:01.044 --> 00:18:02.743 which the grant funds need 00:18:02.784 --> 00:18:03.443 to be deployed. 00:18:04.767 --> 00:18:06.588 So a procurement challenge 00:18:06.828 --> 00:18:09.351 is basically bad news from 00:18:09.551 --> 00:18:10.673 a local authority's point 00:18:10.712 --> 00:18:12.513 of view and not at all appealing. 00:18:13.055 --> 00:18:15.076 And so local authorities 00:18:15.096 --> 00:18:16.637 will often ask us to advise 00:18:16.738 --> 00:18:21.321 on the procurement route as a first step. 00:18:21.342 --> 00:18:22.343 Without wishing for this 00:18:22.383 --> 00:18:23.644 webinar to become a 00:18:23.684 --> 00:18:24.965 procurement training session, 00:18:26.007 --> 00:18:26.907 the choice of procurement 00:18:26.928 --> 00:18:28.048 process will depend on 00:18:28.108 --> 00:18:30.151 three main factors. 00:18:30.211 --> 00:18:30.530 First, 00:18:31.044 --> 00:18:31.944 Is there an appropriate 00:18:31.964 --> 00:18:33.205 framework under which the 00:18:33.246 --> 00:18:35.647 contract or opportunity can be tendered? 00:18:35.828 --> 00:18:36.328 And of course, 00:18:36.348 --> 00:18:38.411 we've come to the conclusion 00:18:38.471 --> 00:18:39.392 over the last few months 00:18:39.432 --> 00:18:42.674 that a DPS and a concession do not mix. 00:18:43.675 --> 00:18:45.357 The second is when will the 00:18:45.377 --> 00:18:46.818 tender be published? 00:18:47.338 --> 00:18:48.661 Bearing in mind the change 00:18:48.681 --> 00:18:51.042 in procurement rules in February, 00:18:51.083 --> 00:18:52.144 twenty twenty five now. 00:18:53.404 --> 00:18:54.807 And the third element is 00:18:54.967 --> 00:18:56.087 whether the opportunity or 00:18:56.107 --> 00:18:57.769 the contract is classed as 00:18:57.789 --> 00:19:00.211 a works contract, the services contract, 00:19:00.792 --> 00:19:04.076 or a concession contract. 00:19:04.096 --> 00:19:05.758 The vast majority of EV 00:19:05.798 --> 00:19:06.719 procurements that we've 00:19:06.739 --> 00:19:08.421 been involved with recently 00:19:08.601 --> 00:19:09.622 have involved the 00:19:09.662 --> 00:19:11.884 procurement of a concession contract. 00:19:11.903 --> 00:19:12.664 And as Alex says, 00:19:12.684 --> 00:19:14.527 this is the selling of an opportunity. 00:19:15.865 --> 00:19:17.326 That's not to say that every 00:19:17.486 --> 00:19:19.827 EV project will be a concession contract. 00:19:20.188 --> 00:19:21.288 So it's often part of our 00:19:21.328 --> 00:19:23.371 scope just to use the 00:19:23.691 --> 00:19:25.372 outline business case that 00:19:25.412 --> 00:19:26.272 is developed during that 00:19:26.292 --> 00:19:27.894 pre-market stage to 00:19:27.933 --> 00:19:29.394 establish whether that is 00:19:29.434 --> 00:19:32.178 what is being procured. 00:19:32.218 --> 00:19:33.699 I think it's fair to say 00:19:33.759 --> 00:19:35.380 that procuring concession 00:19:35.660 --> 00:19:38.501 is not business as usual 00:19:38.863 --> 00:19:40.263 for local authorities. 00:19:40.364 --> 00:19:41.444 And I think the interview 00:19:41.785 --> 00:19:44.207 with Paul kind of demonstrates that. 00:19:45.027 --> 00:19:45.367 And so, 00:19:46.330 --> 00:19:47.431 what we want to achieve 00:19:47.490 --> 00:19:49.451 through our advice is to 00:19:49.511 --> 00:19:51.153 ensure that the local 00:19:51.173 --> 00:19:53.032 authority has the level of 00:19:53.073 --> 00:19:55.374 assurance it needs in order 00:19:55.394 --> 00:19:57.355 to step forward into the 00:19:57.394 --> 00:19:59.316 market with confidence and 00:19:59.355 --> 00:20:00.796 minimize that risk of a 00:20:00.836 --> 00:20:03.717 procurement challenge. 00:20:03.817 --> 00:20:04.917 Once the procurement route 00:20:05.238 --> 00:20:06.778 has been identified, 00:20:07.618 --> 00:20:08.618 really it's time to crack 00:20:08.699 --> 00:20:09.759 on with preparing the 00:20:09.818 --> 00:20:11.099 tender documentation. 00:20:11.140 --> 00:20:11.960 So that's the tender 00:20:12.000 --> 00:20:13.941 preparation stage on the slide there. 00:20:15.184 --> 00:20:15.684 Typically, 00:20:15.724 --> 00:20:16.826 the tender documents will 00:20:16.865 --> 00:20:18.166 include the instructions to 00:20:18.207 --> 00:20:20.348 bidders on what is required 00:20:20.409 --> 00:20:22.170 of them in terms of their 00:20:22.210 --> 00:20:23.171 final submission. 00:20:24.451 --> 00:20:25.553 The tender documents will 00:20:25.593 --> 00:20:26.854 set out the rules of the 00:20:26.894 --> 00:20:27.894 procurement process. 00:20:28.134 --> 00:20:29.935 Is it a single stage process? 00:20:30.356 --> 00:20:31.917 Is it a multi-stage process 00:20:31.938 --> 00:20:34.640 with dialogue with the local authority? 00:20:35.401 --> 00:20:37.182 What's the process for 00:20:37.321 --> 00:20:38.462 asking clarifications? 00:20:40.094 --> 00:20:41.295 The third important element 00:20:41.355 --> 00:20:42.736 of the tender documentation 00:20:42.915 --> 00:20:44.538 is that it sets out the 00:20:44.938 --> 00:20:47.359 evaluation criteria through 00:20:47.400 --> 00:20:49.622 which the submissions will be scored. 00:20:51.364 --> 00:20:52.785 And this will enable the 00:20:52.964 --> 00:20:53.846 local authority to 00:20:53.905 --> 00:20:56.147 establish which tender is 00:20:56.208 --> 00:20:57.568 the most economically 00:20:57.709 --> 00:20:59.510 advantageous tender to use 00:20:59.530 --> 00:21:00.491 the procurement jargon. 00:21:01.780 --> 00:21:03.201 And the final big piece of 00:21:03.221 --> 00:21:04.481 the puzzle in terms of that 00:21:04.521 --> 00:21:05.883 tender preparation is 00:21:06.584 --> 00:21:08.084 establishing what the terms 00:21:08.124 --> 00:21:09.805 of the contract are and 00:21:09.865 --> 00:21:11.846 drafting that contract. 00:21:12.826 --> 00:21:14.228 Once the contract has been 00:21:14.288 --> 00:21:15.867 published and it's gone out to market, 00:21:16.249 --> 00:21:17.769 along with the other tender documents, 00:21:18.190 --> 00:21:19.130 we'll often help local 00:21:19.150 --> 00:21:20.931 authorities with responding 00:21:20.990 --> 00:21:22.951 to clarification questions 00:21:23.653 --> 00:21:24.492 and where there is a 00:21:24.573 --> 00:21:26.653 dialogue process in the procurements, 00:21:27.134 --> 00:21:28.154 then we'll help with the 00:21:28.194 --> 00:21:30.076 legal and commercial dialogue sessions. 00:21:32.304 --> 00:21:34.483 So actually we've mentioned 00:21:36.045 --> 00:21:37.424 the contract quite a few 00:21:37.484 --> 00:21:39.826 times so far in this webinar. 00:21:41.125 --> 00:21:43.205 Whichever procurement process is adopted, 00:21:43.826 --> 00:21:45.207 ultimately bidders will 00:21:45.247 --> 00:21:46.487 need to be provided with a 00:21:46.507 --> 00:21:48.287 draft contract that they 00:21:48.307 --> 00:21:49.527 will be required to sign up 00:21:49.547 --> 00:21:51.188 to if they are selected as 00:21:51.208 --> 00:21:52.347 the successful tenderer. 00:21:53.728 --> 00:21:56.009 And so the contract needs to 00:21:56.048 --> 00:21:57.068 be provided during the 00:21:57.108 --> 00:21:58.169 procurement process. 00:21:59.469 --> 00:22:01.990 This also enables bidders to price 00:22:02.994 --> 00:22:04.476 the risks under that 00:22:04.576 --> 00:22:06.076 contract during the 00:22:06.115 --> 00:22:09.096 competitive stage of market engagement. 00:22:10.857 --> 00:22:12.778 Our experience in the EV 00:22:12.818 --> 00:22:14.759 field especially is that no 00:22:14.819 --> 00:22:16.539 two contracts are the same. 00:22:17.721 --> 00:22:18.040 Although, 00:22:18.280 --> 00:22:19.862 whatever the terms of the contract, 00:22:20.461 --> 00:22:22.103 in order to extract the 00:22:22.143 --> 00:22:24.363 best value from the competition process, 00:22:25.324 --> 00:22:26.384 a contract really needs to 00:22:26.443 --> 00:22:27.884 tick three boxes. 00:22:28.891 --> 00:22:29.250 First, 00:22:29.431 --> 00:22:31.673 it needs to be clear in its 00:22:31.712 --> 00:22:33.834 allocation of risks, i.e. 00:22:34.273 --> 00:22:36.715 who needs to do what, by when, 00:22:37.195 --> 00:22:37.655 and what are the 00:22:37.695 --> 00:22:39.576 consequences of a breach. 00:22:40.018 --> 00:22:43.299 Second, the contract needs to be bankable. 00:22:43.839 --> 00:22:44.259 That is, 00:22:44.661 --> 00:22:47.281 it can't be so one-sided towards 00:22:47.342 --> 00:22:49.804 the local authority that no 00:22:49.864 --> 00:22:51.365 bank would ever be willing 00:22:51.404 --> 00:22:53.266 to provide working capital 00:22:53.605 --> 00:22:54.906 to the successful tenderer 00:22:55.146 --> 00:22:56.988 to get the project kick-started. 00:22:58.617 --> 00:22:59.278 And thirdly, 00:23:00.598 --> 00:23:01.940 the contract really needs to 00:23:01.960 --> 00:23:03.500 take into account the 00:23:03.560 --> 00:23:04.861 requirements of any grant 00:23:04.881 --> 00:23:06.561 funding that's sitting in the background, 00:23:06.781 --> 00:23:08.222 whether that's Levi funding 00:23:08.502 --> 00:23:09.343 in accordance with the 00:23:09.383 --> 00:23:10.544 grant funding agreements, 00:23:10.844 --> 00:23:12.325 sometimes there are aid 00:23:12.345 --> 00:23:14.145 intensities that need to be respected. 00:23:15.465 --> 00:23:18.107 Or in the context of OSEV funded contracts, 00:23:19.568 --> 00:23:20.368 the contract will need to 00:23:20.429 --> 00:23:21.589 satisfy the various 00:23:21.809 --> 00:23:24.371 requirements of the OSEV heads of terms. 00:23:26.925 --> 00:23:27.747 In the background, 00:23:28.007 --> 00:23:29.146 we often advise on the 00:23:29.207 --> 00:23:30.228 issues that relate to the 00:23:30.268 --> 00:23:33.009 contract and will feed into 00:23:33.069 --> 00:23:35.250 the terms of the contract. 00:23:35.290 --> 00:23:35.931 For example, 00:23:36.092 --> 00:23:38.012 in the context of a local 00:23:38.032 --> 00:23:40.114 authority procurement that 00:23:40.213 --> 00:23:41.994 involves electric vehicle 00:23:42.035 --> 00:23:44.155 charging points on non-highways land, 00:23:44.997 --> 00:23:46.077 the contract will typically 00:23:46.117 --> 00:23:47.397 require the local authority 00:23:47.438 --> 00:23:49.720 to grant a lease to the concessionaire. 00:23:50.788 --> 00:23:52.429 So it's important that the 00:23:52.469 --> 00:23:53.250 local authority is 00:23:53.289 --> 00:23:54.510 comfortable that it has the 00:23:54.530 --> 00:23:56.393 legal rights it needs in 00:23:56.512 --> 00:23:57.653 order to grant that lease. 00:23:58.294 --> 00:23:59.454 So we'll often carry out 00:23:59.875 --> 00:24:01.057 legal due diligence in 00:24:01.116 --> 00:24:02.678 order to establish whether 00:24:02.698 --> 00:24:03.898 the local authority owns 00:24:03.939 --> 00:24:05.881 that land or if it is the 00:24:05.921 --> 00:24:07.082 leaseholder of that land, 00:24:07.662 --> 00:24:08.603 are there any provisions 00:24:08.782 --> 00:24:09.683 under the lease that need 00:24:09.703 --> 00:24:10.964 to be passed down to the 00:24:11.005 --> 00:24:12.105 concessionaire under the 00:24:12.145 --> 00:24:13.067 concession contract? 00:24:14.050 --> 00:24:15.810 Sometimes we find that the 00:24:15.852 --> 00:24:17.071 local authority has already 00:24:17.132 --> 00:24:19.412 leased that car park to a third party, 00:24:19.853 --> 00:24:21.053 and so we'll need to 00:24:22.313 --> 00:24:24.574 establish a workaround in 00:24:24.713 --> 00:24:27.994 order to work out the best 00:24:28.055 --> 00:24:30.075 way of being able to grant 00:24:30.214 --> 00:24:32.496 a lease to a concessionaire 00:24:32.615 --> 00:24:33.355 in due course. 00:24:34.737 --> 00:24:35.636 Another area that we'll 00:24:35.977 --> 00:24:37.156 often get involved with is 00:24:37.237 --> 00:24:38.317 carrying out due diligence 00:24:38.458 --> 00:24:39.738 on existing contracts. 00:24:40.498 --> 00:24:41.657 The two types of contracts 00:24:41.698 --> 00:24:43.618 that spring to mind most readily 00:24:44.275 --> 00:24:45.276 and are where the local 00:24:45.296 --> 00:24:46.915 authority has entered into 00:24:47.236 --> 00:24:48.676 a street lighting PFI 00:24:48.696 --> 00:24:50.478 contract and the local 00:24:50.518 --> 00:24:52.798 authority is procuring lamp 00:24:52.838 --> 00:24:54.519 column mounted chargers. 00:24:55.140 --> 00:24:56.361 And so there's an interface 00:24:56.401 --> 00:24:57.800 there between the eventual 00:24:57.840 --> 00:24:59.582 concessionaire and the PFI 00:24:59.602 --> 00:25:01.022 contractor that we need to 00:25:01.163 --> 00:25:02.624 iron out and make sure that 00:25:02.644 --> 00:25:04.044 there are appropriate 00:25:04.084 --> 00:25:05.085 provisions in the contract 00:25:05.105 --> 00:25:05.684 to deal with that. 00:25:06.778 --> 00:25:07.857 Another type of contract 00:25:07.897 --> 00:25:09.358 that will interface or may 00:25:09.398 --> 00:25:10.358 interface with the new 00:25:10.419 --> 00:25:12.079 concessionaire is where the 00:25:12.119 --> 00:25:13.720 local authority already has 00:25:15.019 --> 00:25:18.060 a number of EV assets under its care, 00:25:18.381 --> 00:25:19.642 which it is contracted for 00:25:20.001 --> 00:25:21.301 and which it wants to be 00:25:21.382 --> 00:25:23.442 subsumed into the new 00:25:23.643 --> 00:25:25.703 concession contract going forwards. 00:25:26.723 --> 00:25:27.683 And so the results of that 00:25:27.723 --> 00:25:28.804 due diligence will all get 00:25:28.884 --> 00:25:30.785 fed into the contract terms 00:25:30.964 --> 00:25:32.726 and they tend to be quite 00:25:32.786 --> 00:25:34.185 local authority specific. 00:25:36.558 --> 00:25:39.140 So once the local authority 00:25:39.180 --> 00:25:40.519 has received the final 00:25:40.559 --> 00:25:43.421 tenders from all the tenderers, 00:25:44.621 --> 00:25:47.481 we go through to the evaluation stage. 00:25:48.603 --> 00:25:49.803 Often we're involved in 00:25:49.843 --> 00:25:50.903 helping local authorities 00:25:50.982 --> 00:25:52.663 with the evaluation process. 00:25:53.044 --> 00:25:54.743 So that could be supervising 00:25:54.804 --> 00:25:56.224 evaluation to make sure 00:25:56.244 --> 00:25:57.865 that the local authority 00:25:58.285 --> 00:26:00.346 carries out the evaluation 00:26:00.465 --> 00:26:01.486 in accordance with the 00:26:01.526 --> 00:26:03.807 published evaluation methodology. 00:26:05.259 --> 00:26:06.380 Sometimes we're asked to 00:26:06.440 --> 00:26:07.740 facilitate moderation of 00:26:07.819 --> 00:26:12.702 scoring across tenders and the like. 00:26:12.722 --> 00:26:14.203 After that evaluation 00:26:14.663 --> 00:26:16.164 process has been completed, 00:26:16.724 --> 00:26:17.885 the local authority will 00:26:17.905 --> 00:26:18.885 have established which 00:26:19.105 --> 00:26:21.528 tender represents the most 00:26:21.768 --> 00:26:23.628 economically advantageous tender. 00:26:24.588 --> 00:26:26.611 And so then we need to 00:26:27.451 --> 00:26:28.951 proceed with the other 00:26:28.991 --> 00:26:30.092 documents that will bring 00:26:30.132 --> 00:26:32.913 the procurement process to an end. 00:26:34.501 --> 00:26:36.703 This will usually involve 00:26:36.743 --> 00:26:38.825 drafting standstill letters 00:26:38.924 --> 00:26:39.925 that are required under a 00:26:39.965 --> 00:26:40.926 procurement process, 00:26:42.027 --> 00:26:43.228 the preferred bidder letter, 00:26:43.749 --> 00:26:45.069 the reserve bid letter if 00:26:45.089 --> 00:26:45.869 that's required. 00:26:46.651 --> 00:26:48.192 Sometimes we're asked to 00:26:48.392 --> 00:26:49.772 provide inputs into 00:26:49.792 --> 00:26:51.433 cabinets and council papers. 00:26:52.194 --> 00:26:53.556 And last but not least, 00:26:53.996 --> 00:26:55.096 remembering why we're going 00:26:55.136 --> 00:26:56.097 through this process 00:26:56.832 --> 00:26:58.374 we will help the local 00:26:58.394 --> 00:26:59.714 authority collate that 00:26:59.775 --> 00:27:01.355 final contract which will 00:27:01.375 --> 00:27:03.077 be the contract published 00:27:03.939 --> 00:27:04.839 supplemented with the 00:27:04.880 --> 00:27:06.020 information from the 00:27:06.060 --> 00:27:07.721 successful tenderer and 00:27:07.741 --> 00:27:09.544 bring this all together so 00:27:09.564 --> 00:27:10.605 it's a contract that can be 00:27:10.664 --> 00:27:11.965 properly signed and 00:27:12.046 --> 00:27:16.711 executed so that's an incredibly quick 00:27:17.932 --> 00:27:20.414 canter through that market 00:27:20.454 --> 00:27:21.737 engagement process. 00:27:22.857 --> 00:27:24.619 There is a lot of work to do, 00:27:25.161 --> 00:27:27.103 but it's not impossible to 00:27:27.143 --> 00:27:28.744 achieve with the right 00:27:29.246 --> 00:27:31.087 inputs and the right level of resource. 00:27:32.502 --> 00:27:33.943 we're aware that each local 00:27:33.983 --> 00:27:35.805 authority has its own level 00:27:35.825 --> 00:27:37.165 of procurement expertise, 00:27:37.487 --> 00:27:38.907 its own level of in-house 00:27:38.928 --> 00:27:41.329 ability to draft a concession contract. 00:27:41.710 --> 00:27:43.270 And Paul made reference to 00:27:43.290 --> 00:27:44.471 that in the interview earlier. 00:27:45.332 --> 00:27:46.353 And so for that reason, 00:27:47.213 --> 00:27:48.194 we're more than happy to 00:27:48.315 --> 00:27:50.435 scope the level of our 00:27:50.476 --> 00:27:52.577 involvement to dovetail with the needs, 00:27:52.837 --> 00:27:54.920 ability and capacity of the 00:27:54.960 --> 00:27:56.240 local authority in question. 00:27:57.361 --> 00:27:57.882 That said, 00:27:58.624 --> 00:27:59.244 a number of local 00:27:59.265 --> 00:28:00.025 authorities that we're 00:28:00.045 --> 00:28:01.625 currently working with have 00:28:01.705 --> 00:28:03.548 asked us to advise on all 00:28:03.587 --> 00:28:04.548 of those points that I've 00:28:04.608 --> 00:28:06.150 touched on in order to 00:28:06.690 --> 00:28:08.571 achieve the maximum level 00:28:08.592 --> 00:28:12.775 of assurance possible. 00:28:12.954 --> 00:28:14.855 That's hugely helpful, Jonathan, 00:28:14.875 --> 00:28:16.096 and I'm sure there are many 00:28:16.136 --> 00:28:17.377 people listening this 00:28:17.438 --> 00:28:18.638 afternoon or who are going 00:28:18.659 --> 00:28:20.161 to start to be breathing a 00:28:20.201 --> 00:28:20.941 sigh of relief. 00:28:22.122 --> 00:28:23.202 Is it fair to say, 00:28:23.982 --> 00:28:26.806 and is it the reason for our webinar, 00:28:26.846 --> 00:28:27.266 in fact, 00:28:28.048 --> 00:28:29.650 that a confused regulatory 00:28:29.690 --> 00:28:31.510 environment has triggered 00:28:31.810 --> 00:28:33.872 confusion and anxiety. 00:28:34.011 --> 00:28:36.733 And in fact, a backlog in, in the, 00:28:37.034 --> 00:28:39.255 in the processing of these projects, 00:28:41.056 --> 00:28:42.277 but that the rules around 00:28:42.356 --> 00:28:44.157 regulatory compliance are clear. 00:28:45.118 --> 00:28:47.319 Um, and advisors like steer and Ashford's, 00:28:47.339 --> 00:28:48.961 um, can, 00:28:49.181 --> 00:28:51.102 can help clarify these issues for 00:28:51.142 --> 00:28:52.082 the client and, and, 00:28:52.383 --> 00:28:53.143 and make sure that these 00:28:53.163 --> 00:28:54.743 projects get funded and deployed. 00:28:57.816 --> 00:29:02.638 Yes, I think using the DPS, for example, 00:29:02.659 --> 00:29:04.319 or an existing framework is 00:29:04.359 --> 00:29:05.720 a tremendous comfort blanket. 00:29:06.121 --> 00:29:07.981 As Paul said, it's there. 00:29:08.001 --> 00:29:09.522 They don't have to start from scratch. 00:29:10.982 --> 00:29:15.846 And there is hesitation and 00:29:16.026 --> 00:29:18.126 reticency over starting from scratch, 00:29:18.247 --> 00:29:19.288 which is the environment 00:29:19.307 --> 00:29:20.868 that we find ourselves in now. 00:29:21.823 --> 00:29:23.022 Terrific. 00:29:23.242 --> 00:29:24.423 So just some housekeeping now. 00:29:25.183 --> 00:29:26.784 It's worth noting that if 00:29:27.844 --> 00:29:28.724 local authorities are 00:29:28.765 --> 00:29:30.045 interested in potentially 00:29:30.085 --> 00:29:32.605 instructing Steer and Ashford's, 00:29:33.526 --> 00:29:35.246 that both of our firms are 00:29:35.425 --> 00:29:36.767 on the correct frameworks 00:29:36.787 --> 00:29:38.186 through which you would engage us. 00:29:39.946 --> 00:29:41.708 What's more, for Steer, 00:29:41.847 --> 00:29:43.928 in our role as transaction advisor, 00:29:44.368 --> 00:29:45.229 as Elaine mentioned, 00:29:45.288 --> 00:29:46.828 we can sometimes build some 00:29:46.868 --> 00:29:48.430 of the cost of our services 00:29:48.930 --> 00:29:50.190 into the deal itself. 00:29:51.076 --> 00:29:52.396 often taking the form of a 00:29:52.477 --> 00:29:54.978 draw against license fees 00:29:55.057 --> 00:29:56.999 receivable by the local 00:29:57.038 --> 00:29:59.078 authority and paid to steer 00:29:59.138 --> 00:30:02.040 upon contract execution. 00:30:02.101 --> 00:30:04.741 So we've thrown an enormous 00:30:04.801 --> 00:30:07.063 amount at you in the last thirty minutes, 00:30:07.623 --> 00:30:09.022 and I believe after the 00:30:09.063 --> 00:30:10.423 event we'll be sending you 00:30:10.483 --> 00:30:11.624 all the link to the 00:30:11.664 --> 00:30:12.724 recording of the session, 00:30:13.345 --> 00:30:14.465 as well as a little 00:30:14.506 --> 00:30:16.226 briefing about the critical 00:30:16.266 --> 00:30:17.586 path that we've described. 00:30:19.498 --> 00:30:21.400 Furthermore, should you find it useful, 00:30:22.201 --> 00:30:23.402 I think we'd be glad to 00:30:24.021 --> 00:30:25.663 facilitate one-on-one 00:30:25.723 --> 00:30:27.326 sessions with you and your 00:30:27.365 --> 00:30:28.807 teams to do a little gap 00:30:28.846 --> 00:30:31.710 analysis of how far along 00:30:31.750 --> 00:30:32.810 your projects are, 00:30:34.092 --> 00:30:35.073 and even think about some 00:30:35.113 --> 00:30:36.534 interventions that may help 00:30:36.574 --> 00:30:37.976 you achieve your objectives. 00:30:38.861 --> 00:30:39.401 Between us, 00:30:39.461 --> 00:30:40.582 we've got at least a few 00:30:40.622 --> 00:30:41.821 decades of experience. 00:30:41.862 --> 00:30:43.762 And together with yourselves, 00:30:43.803 --> 00:30:44.903 we should be able to do 00:30:44.963 --> 00:30:46.104 something of a health check 00:30:46.904 --> 00:30:48.424 to support decision makers 00:30:48.726 --> 00:30:50.105 from your organization. 00:30:51.126 --> 00:30:53.188 So that's what we have for you today. 00:30:53.208 --> 00:30:54.548 And we're ending bang on 00:30:55.188 --> 00:30:56.169 half past the hour. 00:30:57.308 --> 00:30:58.910 But we did promise to 00:30:59.289 --> 00:31:00.631 entertain some questions. 00:31:00.851 --> 00:31:01.590 I know we've had some 00:31:01.631 --> 00:31:03.031 questions in some of the 00:31:03.092 --> 00:31:04.633 pre-event work that we've done. 00:31:05.653 --> 00:31:07.594 And I wonder if my colleague, Sarah, 00:31:08.400 --> 00:31:09.740 wouldn't mind coming in and 00:31:10.060 --> 00:31:13.284 moderating those questions. 00:31:13.304 --> 00:31:13.943 Sure thing. 00:31:14.304 --> 00:31:14.463 Yes. 00:31:14.483 --> 00:31:15.105 Hi, everyone. 00:31:15.125 --> 00:31:16.066 My name is Sarah Glynn. 00:31:16.105 --> 00:31:17.066 I'm part of the technical 00:31:17.105 --> 00:31:19.708 team supporting this webinar here today. 00:31:19.768 --> 00:31:22.230 So I'm going to moderate the Q&A section. 00:31:23.230 --> 00:31:24.191 Lots of you actually 00:31:24.230 --> 00:31:25.511 completed the pre-event 00:31:25.571 --> 00:31:28.034 questionnaire that we sent out last week. 00:31:28.054 --> 00:31:29.375 So we do actually have lots 00:31:29.474 --> 00:31:32.416 of questions already, which is fantastic. 00:31:32.977 --> 00:31:33.857 Some of these will have 00:31:33.897 --> 00:31:35.638 already been covered with 00:31:35.659 --> 00:31:36.619 the content today. 00:31:37.073 --> 00:31:38.173 But I'll start with some of 00:31:38.193 --> 00:31:39.233 the remaining questions 00:31:39.253 --> 00:31:40.414 that I don't think perhaps 00:31:40.894 --> 00:31:42.276 we've quite answered while 00:31:42.316 --> 00:31:43.816 everyone kind of heads over 00:31:43.875 --> 00:31:46.076 to the chat box to ask any 00:31:46.116 --> 00:31:47.038 more that they might have. 00:31:47.798 --> 00:31:48.097 Alex, 00:31:48.137 --> 00:31:49.439 I'm going to start off with what I 00:31:49.479 --> 00:31:50.960 think was the million 00:31:51.000 --> 00:31:52.519 dollar question I think 00:31:52.539 --> 00:31:54.020 that we had from the 00:31:54.060 --> 00:31:56.041 pre-event questionnaire. 00:31:56.241 --> 00:31:58.282 And someone from a local 00:31:58.303 --> 00:31:59.364 authority has asked, 00:31:59.864 --> 00:32:01.525 how do we make sure that we 00:32:01.545 --> 00:32:02.644 attract sufficient 00:32:02.704 --> 00:32:04.885 investment attention to our project? 00:32:04.926 --> 00:32:05.886 I'm sure a question that 00:32:06.229 --> 00:32:07.229 is on the minds of lots of 00:32:07.348 --> 00:32:09.150 our attendees today. 00:32:10.150 --> 00:32:11.971 Yeah, that is the million dollar question. 00:32:12.750 --> 00:32:13.931 Remember I mentioned that 00:32:13.990 --> 00:32:16.172 procurement isn't buying, it's selling. 00:32:16.912 --> 00:32:18.772 And by that, 00:32:18.952 --> 00:32:21.673 I mean that the project that's 00:32:21.713 --> 00:32:23.874 being developed has to 00:32:23.933 --> 00:32:25.734 balance the interests of 00:32:25.775 --> 00:32:27.576 the EV driving customers, 00:32:28.236 --> 00:32:29.236 the local authority, 00:32:29.855 --> 00:32:31.457 and the charge point 00:32:31.616 --> 00:32:34.298 operating private investor. 00:32:35.858 --> 00:32:37.539 So it is really important 00:32:37.880 --> 00:32:40.161 that the project developer, 00:32:40.480 --> 00:32:41.521 the local authority, 00:32:42.342 --> 00:32:43.461 put together a business 00:32:43.501 --> 00:32:45.182 case that acknowledges the 00:32:45.242 --> 00:32:46.183 interests of all three of 00:32:46.203 --> 00:32:48.285 those parties and balances 00:32:48.325 --> 00:32:50.305 them in the investment 00:32:50.346 --> 00:32:51.326 opportunity itself. 00:32:51.826 --> 00:32:53.946 We have seen procurements 00:32:53.987 --> 00:32:55.407 that have failed because 00:32:55.428 --> 00:32:56.988 they've been overly 00:32:57.048 --> 00:32:59.849 prescriptive to terms that 00:32:59.930 --> 00:33:01.430 the private investor simply 00:33:01.490 --> 00:33:03.411 can't accept because it 00:33:03.451 --> 00:33:04.731 doesn't earn them a yield 00:33:05.176 --> 00:33:06.238 against their their 00:33:06.278 --> 00:33:07.118 investment it doesn't give 00:33:07.138 --> 00:33:08.180 them return on investment 00:33:09.340 --> 00:33:10.422 and so that's why we 00:33:10.481 --> 00:33:11.603 believe really strongly in 00:33:11.643 --> 00:33:13.545 this pre-engagement effort 00:33:14.826 --> 00:33:17.107 where we or steer acts as a 00:33:17.188 --> 00:33:19.951 transaction advisor helping 00:33:19.971 --> 00:33:21.592 the local authority put 00:33:21.633 --> 00:33:22.913 together the business case 00:33:22.953 --> 00:33:24.095 the demand projection 00:33:24.484 --> 00:33:25.566 the financial model, 00:33:26.646 --> 00:33:27.548 the business case 00:33:27.587 --> 00:33:31.049 describing roles and value 00:33:31.089 --> 00:33:32.290 participation thereon, 00:33:32.652 --> 00:33:33.692 and puts it together in a 00:33:33.752 --> 00:33:36.934 concise prospectus, which really drives, 00:33:36.974 --> 00:33:37.576 for instance, 00:33:37.635 --> 00:33:40.018 the commercial specification 00:33:40.417 --> 00:33:41.419 in the tender itself. 00:33:42.098 --> 00:33:43.339 So that's all really about 00:33:43.780 --> 00:33:45.102 if we are selling something, 00:33:45.221 --> 00:33:46.163 we need to make sure that 00:33:46.202 --> 00:33:48.003 what we're selling is of value. 00:33:48.023 --> 00:33:49.865 Great answer, Alex. 00:33:49.885 --> 00:33:51.507 Thank you for covering that. 00:33:51.917 --> 00:33:52.218 Jonathan, 00:33:52.238 --> 00:33:53.298 I'm going to come to you now 00:33:53.338 --> 00:33:54.359 because we've had a very, 00:33:56.221 --> 00:33:57.321 we've had a legal question, 00:33:57.362 --> 00:34:00.884 so you're absolutely the man for us here. 00:34:00.903 --> 00:34:01.644 A viewer has asked, 00:34:01.924 --> 00:34:03.645 how detailed or complete 00:34:03.766 --> 00:34:05.906 does our draft contract need to be? 00:34:06.488 --> 00:34:08.768 Are the Levi heads of terms sufficient? 00:34:09.610 --> 00:34:10.690 And is there a standard form 00:34:10.710 --> 00:34:11.951 of contract that they can 00:34:12.472 --> 00:34:15.893 pull off the shelf, as it were? 00:34:15.954 --> 00:34:18.034 Three questions, right, okay. 00:34:18.074 --> 00:34:18.496 Lucky you. 00:34:20.123 --> 00:34:22.344 How detailed does the draft 00:34:22.364 --> 00:34:23.306 contract need to be? 00:34:23.865 --> 00:34:26.628 So quite aside from what's 00:34:26.668 --> 00:34:28.130 required under the procurement rules, 00:34:30.150 --> 00:34:31.291 it's really best to have 00:34:31.331 --> 00:34:35.094 that complete contract out 00:34:35.114 --> 00:34:37.516 with the market before they 00:34:37.556 --> 00:34:39.759 have submitted their final bids. 00:34:40.219 --> 00:34:41.659 And the reason for that is 00:34:42.701 --> 00:34:44.262 you get your contract out 00:34:44.501 --> 00:34:46.264 to the bidders and they can 00:34:46.324 --> 00:34:49.085 price all the risks in the contract. 00:34:50.099 --> 00:34:52.202 And you also minimize any 00:34:52.242 --> 00:34:54.503 potential for negotiation 00:34:55.164 --> 00:34:56.965 to arise after you have 00:34:57.045 --> 00:34:58.407 carried out your evaluation 00:34:58.786 --> 00:35:00.268 and worked out which is the 00:35:00.369 --> 00:35:03.371 most economically advantageous tender. 00:35:03.851 --> 00:35:04.811 So really, you're... 00:35:07.235 --> 00:35:09.117 Just even from a common 00:35:09.157 --> 00:35:09.918 sense point of view, 00:35:09.978 --> 00:35:11.480 you're not in a good place 00:35:11.940 --> 00:35:12.960 if you've carried out your 00:35:13.181 --> 00:35:14.822 evaluation and then you 00:35:14.882 --> 00:35:17.865 have a negotiation exercise afterwards. 00:35:19.067 --> 00:35:20.547 So our message is, 00:35:21.728 --> 00:35:22.670 from a procurement point of 00:35:22.690 --> 00:35:24.070 view and just making the 00:35:24.110 --> 00:35:25.813 most of competition point of view, 00:35:26.233 --> 00:35:28.135 is get your complete 00:35:28.175 --> 00:35:29.655 contract out to the market 00:35:29.775 --> 00:35:31.418 as part of the tender documentation. 00:35:32.728 --> 00:35:35.530 Um, I think your second question was, um, 00:35:35.630 --> 00:35:37.030 about, um, 00:35:37.090 --> 00:35:39.030 whether the Levi heads of terms 00:35:39.452 --> 00:35:40.172 is sufficient. 00:35:40.192 --> 00:35:41.632 Yeah. 00:35:41.713 --> 00:35:41.952 Yeah. 00:35:41.972 --> 00:35:44.074 So, I mean, yes, 00:35:45.114 --> 00:35:48.675 I would say depending on 00:35:48.735 --> 00:35:50.938 the procurement process that you adopt, 00:35:51.757 --> 00:35:54.039 um, they might be as a starter for. 00:35:54.239 --> 00:35:54.418 Um, 00:35:56.000 --> 00:35:58.481 if you've got a multi-stage procurement 00:35:58.521 --> 00:35:59.382 process, because 00:36:00.356 --> 00:36:01.456 the procurement for this 00:36:01.516 --> 00:36:02.818 particular local authority 00:36:02.858 --> 00:36:04.239 is particularly complex, 00:36:04.739 --> 00:36:07.240 you might start with some heads of terms, 00:36:07.601 --> 00:36:08.842 which are then gradually 00:36:08.902 --> 00:36:09.782 developed through the 00:36:09.822 --> 00:36:12.105 process of dialogue with all the bidders. 00:36:13.505 --> 00:36:14.646 However, ultimately, 00:36:14.827 --> 00:36:16.748 before you ask all the 00:36:16.788 --> 00:36:18.750 bidders to submit their final tenders, 00:36:19.489 --> 00:36:19.851 again, 00:36:20.090 --> 00:36:21.552 you should have your final contract 00:36:21.592 --> 00:36:25.135 in place for the reasons given before. 00:36:26.615 --> 00:36:29.800 I think the third question there was, 00:36:30.722 --> 00:36:32.244 is there a standard form of 00:36:32.284 --> 00:36:34.427 contracts that you can pull 00:36:34.467 --> 00:36:35.128 off the shelf? 00:36:35.648 --> 00:36:37.070 And I think every local 00:36:37.110 --> 00:36:38.231 authority would probably 00:36:38.291 --> 00:36:39.994 wish that there was, 00:36:40.295 --> 00:36:42.257 but I don't think there is. 00:36:43.327 --> 00:36:44.829 Obviously at Ashford, 00:36:44.889 --> 00:36:46.588 we've got an array of 00:36:46.668 --> 00:36:48.849 precedents that we can draw on. 00:36:49.409 --> 00:36:50.431 And that, you know, 00:36:50.530 --> 00:36:52.630 even whether it's a works 00:36:52.670 --> 00:36:53.771 contract or a services 00:36:53.811 --> 00:36:55.431 contract or a concession contract, 00:36:55.891 --> 00:36:57.592 obviously we've got the 00:36:58.413 --> 00:36:59.753 forms of contract that we 00:36:59.793 --> 00:37:01.313 have worked on with other 00:37:01.333 --> 00:37:02.394 clients in the past. 00:37:02.534 --> 00:37:04.195 So we've probably got model 00:37:04.235 --> 00:37:07.677 clauses that will fit most scenarios. 00:37:08.396 --> 00:37:09.197 But nevertheless, 00:37:09.237 --> 00:37:10.438 they do need to be brought 00:37:10.458 --> 00:37:11.418 together and stitched 00:37:11.737 --> 00:37:14.358 together into one cohesive whole. 00:37:15.079 --> 00:37:18.099 And another thing that I'd 00:37:18.139 --> 00:37:19.139 probably just mention in 00:37:19.179 --> 00:37:22.280 this regard is that whilst 00:37:22.300 --> 00:37:23.601 we're using the umbrella 00:37:23.621 --> 00:37:25.780 term EV procurement, 00:37:27.121 --> 00:37:29.001 each local authority is different. 00:37:29.742 --> 00:37:31.041 Some local authorities have 00:37:31.983 --> 00:37:33.503 street lighting, PFIs, 00:37:34.059 --> 00:37:35.400 The real estate angle is 00:37:35.619 --> 00:37:37.400 almost invariably different 00:37:37.440 --> 00:37:39.443 from one local authority to another, 00:37:39.463 --> 00:37:40.483 just because you're talking 00:37:40.503 --> 00:37:41.724 about different parcels of 00:37:41.804 --> 00:37:43.125 land on which the charge 00:37:43.164 --> 00:37:44.326 points will be located. 00:37:44.925 --> 00:37:46.907 And so all these things will 00:37:47.128 --> 00:37:49.268 just go into the mix and 00:37:49.449 --> 00:37:51.130 mean that every contract is 00:37:51.490 --> 00:37:54.512 bespoke at the end of the day. 00:37:54.572 --> 00:37:56.534 Thanks for clearing that up, Jonathan. 00:37:56.614 --> 00:37:58.434 Alex, I'm going to come back to you. 00:37:58.454 --> 00:37:59.235 And I think this question 00:37:59.255 --> 00:38:00.215 kind of harks back to that 00:38:00.255 --> 00:38:01.277 confusion that I think you 00:38:01.317 --> 00:38:02.797 talked about at the start. 00:38:03.887 --> 00:38:04.849 This person has asked, 00:38:05.469 --> 00:38:06.610 didn't the application we 00:38:06.650 --> 00:38:08.951 submitted for Levi already 00:38:09.010 --> 00:38:11.952 cover the pre-market engagement steps? 00:38:11.972 --> 00:38:14.273 And can I still use the 00:38:14.313 --> 00:38:15.773 procurement documentation 00:38:16.293 --> 00:38:18.275 slash strategy included in 00:38:18.315 --> 00:38:23.257 my Levi application? 00:38:23.338 --> 00:38:24.719 It's a tricky question to answer, 00:38:24.778 --> 00:38:25.079 actually. 00:38:25.119 --> 00:38:26.278 I'm going to do my best. 00:38:28.597 --> 00:38:31.259 The Levi applications that 00:38:31.318 --> 00:38:33.179 STEER undertook for our 00:38:33.219 --> 00:38:37.360 public sector clients are 00:38:38.800 --> 00:38:42.161 terribly good at fulfilling their purpose, 00:38:42.902 --> 00:38:45.561 which was giving OSEV and 00:38:45.601 --> 00:38:46.202 the Department for 00:38:46.242 --> 00:38:50.543 Transport a good sense that 00:38:50.583 --> 00:38:51.963 the local authority was 00:38:52.003 --> 00:38:53.244 going to be a responsible 00:38:53.304 --> 00:38:56.965 steward of this value, of this money. 00:38:58.961 --> 00:39:00.101 I think it's somewhat of a 00:39:00.202 --> 00:39:02.463 different question that's 00:39:02.523 --> 00:39:05.123 being answered when we 00:39:05.163 --> 00:39:07.403 think about not simply 00:39:07.463 --> 00:39:09.543 getting that good feeling 00:39:09.583 --> 00:39:11.724 through to the DFT that 00:39:11.764 --> 00:39:12.744 we're a good steward, 00:39:13.724 --> 00:39:15.646 but also indicating to the 00:39:15.726 --> 00:39:17.666 private investor that we're 00:39:17.706 --> 00:39:18.485 a good partner, 00:39:19.266 --> 00:39:21.306 that we understand the 00:39:21.347 --> 00:39:22.646 commercial objectives of 00:39:22.686 --> 00:39:23.768 the project for both 00:39:23.827 --> 00:39:25.708 ourselves and for the private investor. 00:39:26.791 --> 00:39:28.693 And we describe the project 00:39:28.932 --> 00:39:31.594 in ways that really answer 00:39:31.614 --> 00:39:33.074 the private investors' questions, 00:39:33.114 --> 00:39:34.735 which often are just quite simple. 00:39:35.376 --> 00:39:37.996 It's simply how much risk is 00:39:38.036 --> 00:39:40.838 there in whether or not 00:39:41.117 --> 00:39:42.498 this amount of revenue and 00:39:42.559 --> 00:39:43.639 therefore this amount of 00:39:43.679 --> 00:39:44.840 free cash flow is going to 00:39:44.880 --> 00:39:46.579 be generated by the 00:39:46.639 --> 00:39:47.920 investment that I'm funding. 00:39:49.010 --> 00:39:51.550 So in general, yes, 00:39:51.851 --> 00:39:53.132 the work that's been done 00:39:53.231 --> 00:39:54.612 to prepare the Levi 00:39:54.771 --> 00:39:57.873 application is valuable and useful, 00:39:58.793 --> 00:40:00.512 but not always sufficient 00:40:01.472 --> 00:40:03.054 to really build that 00:40:03.253 --> 00:40:04.954 investment prospectus 00:40:05.574 --> 00:40:08.974 that's going to attract the 00:40:09.014 --> 00:40:09.875 private investor. 00:40:10.394 --> 00:40:13.195 There's also a little bit of 00:40:13.215 --> 00:40:15.376 a self-inflicted wound here 00:40:16.166 --> 00:40:18.126 in that the Levi application 00:40:18.186 --> 00:40:19.907 was prepared now, twelve months ago, 00:40:21.228 --> 00:40:22.708 and the increasing 00:40:23.047 --> 00:40:26.349 development of demand changes, 00:40:26.548 --> 00:40:27.449 to some extent, 00:40:28.389 --> 00:40:29.809 the thesis in which the 00:40:29.849 --> 00:40:33.170 investor is investing. 00:40:33.510 --> 00:40:34.030 So yes, 00:40:34.090 --> 00:40:35.570 it's important work and it's useful, 00:40:36.811 --> 00:40:37.530 but in general, 00:40:37.570 --> 00:40:39.851 it might fall short of 00:40:39.951 --> 00:40:41.371 meeting the objectives that 00:40:41.411 --> 00:40:42.371 the local authority, 00:40:42.391 --> 00:40:43.831 the project sponsor has, 00:40:44.766 --> 00:40:45.847 in attracting private 00:40:45.867 --> 00:40:46.827 investment to a 00:40:46.887 --> 00:40:50.110 commercially viable project. 00:40:50.130 --> 00:40:50.811 That makes sense. 00:40:50.851 --> 00:40:52.612 So I guess the answer is it could be, 00:40:53.472 --> 00:40:54.172 but worth kind of 00:40:54.273 --> 00:40:56.753 reevaluating at this kind of stage. 00:40:57.534 --> 00:40:57.855 Jonathan, 00:40:57.875 --> 00:40:59.255 I'm going to head back to you now, 00:40:59.275 --> 00:41:00.235 if that's OK, 00:41:00.255 --> 00:41:01.356 because we've had a question 00:41:01.456 --> 00:41:03.237 about compliance. 00:41:03.257 --> 00:41:05.579 So they've asked, 00:41:06.018 --> 00:41:07.340 what happens if we fail to 00:41:07.380 --> 00:41:08.701 demonstrate compliance with 00:41:08.880 --> 00:41:10.521 procurement legislation, 00:41:10.561 --> 00:41:12.443 if this hasn't already been covered? 00:41:15.173 --> 00:41:17.797 Yes, so as I mentioned earlier, 00:41:19.860 --> 00:41:20.842 if you fail to 00:41:22.523 --> 00:41:24.503 comply with the procurement rules, 00:41:25.744 --> 00:41:27.485 an unsuccessful bidder can 00:41:27.545 --> 00:41:28.465 raise a procurement 00:41:28.485 --> 00:41:31.186 challenge in respect of your procurement. 00:41:31.887 --> 00:41:34.429 And if there is merit to 00:41:34.489 --> 00:41:36.590 those arguments raised by the bidder, 00:41:38.090 --> 00:41:40.612 it will almost inevitably cause delay. 00:41:41.012 --> 00:41:42.713 It might cause a failure of 00:41:42.753 --> 00:41:43.974 the procurement process. 00:41:44.514 --> 00:41:46.414 And so you might be back to 00:41:46.454 --> 00:41:48.576 square one in your procurement process. 00:41:49.201 --> 00:41:50.400 Obviously that's quite 00:41:50.440 --> 00:41:51.442 wearing on the private 00:41:51.461 --> 00:41:53.101 sector as well because the 00:41:53.141 --> 00:41:53.842 bidders will have, 00:41:54.242 --> 00:41:54.963 other bidders will have 00:41:55.003 --> 00:41:57.204 been plowing development 00:41:57.244 --> 00:42:00.144 caps into producing their bids. 00:42:00.844 --> 00:42:01.844 And so you might find that 00:42:01.864 --> 00:42:02.806 when you rerun your 00:42:02.826 --> 00:42:03.826 procurement the next time, 00:42:03.846 --> 00:42:04.646 there's less market 00:42:04.686 --> 00:42:06.027 engagement because frankly 00:42:06.407 --> 00:42:07.706 the market's exhausted and 00:42:07.766 --> 00:42:09.927 it's gone to seek other 00:42:09.967 --> 00:42:12.148 opportunities elsewhere. 00:42:12.809 --> 00:42:15.150 And the knock-on process for 00:42:15.170 --> 00:42:17.891 the grant funded EV projects 00:42:18.744 --> 00:42:21.525 is that frequently those 00:42:21.545 --> 00:42:22.525 grant funding agreements 00:42:22.545 --> 00:42:23.565 will have specific 00:42:23.605 --> 00:42:25.306 deadlines by which you need 00:42:25.326 --> 00:42:26.266 to demonstrate that the 00:42:26.306 --> 00:42:27.465 money has been deployed. 00:42:28.045 --> 00:42:30.327 And if you have to stop a 00:42:30.367 --> 00:42:31.686 procurement process or even 00:42:31.746 --> 00:42:33.427 restart a procurement process, 00:42:34.728 --> 00:42:37.108 then you're really putting 00:42:37.148 --> 00:42:39.128 those timescales under stress. 00:42:39.509 --> 00:42:41.070 And that means that 00:42:41.150 --> 00:42:42.610 deliverability for the 00:42:42.650 --> 00:42:45.451 private sector is even more stretching. 00:42:45.851 --> 00:42:47.311 and the more the more stress 00:42:47.351 --> 00:42:48.132 you put on the private 00:42:48.172 --> 00:42:49.293 sector the more they risk 00:42:49.333 --> 00:42:51.014 price so you get less less 00:42:51.034 --> 00:42:52.916 and less value as delays 00:42:53.016 --> 00:42:56.918 accrue um just kind of 00:42:57.057 --> 00:42:59.219 another related point is um 00:42:59.579 --> 00:43:00.139 you know there's that 00:43:00.199 --> 00:43:01.942 saying uh turn that frown 00:43:02.041 --> 00:43:04.603 upside down and whilst I 00:43:04.923 --> 00:43:06.905 know that people look at 00:43:08.322 --> 00:43:09.543 the procurement rules and 00:43:09.583 --> 00:43:10.682 the procurement process, 00:43:10.702 --> 00:43:14.266 and they roll their eyes and think, oh, 00:43:14.286 --> 00:43:15.346 this is another legal 00:43:15.405 --> 00:43:17.027 hurdle that I have to go through. 00:43:18.068 --> 00:43:19.369 I think you can see 00:43:19.409 --> 00:43:21.030 procurement as an opportunity. 00:43:21.170 --> 00:43:21.989 It's a tool. 00:43:22.291 --> 00:43:23.471 You can leverage it. 00:43:23.831 --> 00:43:25.172 You can really drive 00:43:25.231 --> 00:43:27.213 competition in the market. 00:43:27.393 --> 00:43:28.815 And if you drive competition, 00:43:29.155 --> 00:43:30.335 you can get much better 00:43:30.356 --> 00:43:34.077 value outcomes and in the long term, 00:43:34.418 --> 00:43:35.478 much better delivery. 00:43:35.958 --> 00:43:37.119 ultimately as well. 00:43:37.199 --> 00:43:40.902 So I think it's not just a matter of, oh, 00:43:40.943 --> 00:43:42.923 we've got to tick the boxes to comply, 00:43:43.164 --> 00:43:44.505 but actually it's how do we 00:43:44.525 --> 00:43:45.826 get the most out of the 00:43:45.867 --> 00:43:47.106 procurement process and 00:43:47.387 --> 00:43:48.128 really drive value. 00:43:48.148 --> 00:43:50.070 But Jonathan, 00:43:50.090 --> 00:43:51.351 can I just add something to that? 00:43:51.931 --> 00:43:52.911 You're talking about more. 00:43:53.072 --> 00:43:55.213 You can get better, you can get more. 00:43:55.313 --> 00:43:57.175 It's not necessarily, for instance, 00:43:57.335 --> 00:43:58.876 the amount of rent to be 00:43:58.936 --> 00:44:00.077 derived by the local 00:44:00.117 --> 00:44:01.398 authority from the project. 00:44:02.398 --> 00:44:05.400 More might mean simply a larger project. 00:44:05.628 --> 00:44:06.088 In other words, 00:44:06.349 --> 00:44:08.010 a larger ratio of private 00:44:08.030 --> 00:44:09.690 investment to public investment, 00:44:10.130 --> 00:44:11.351 a larger commitment from 00:44:11.371 --> 00:44:12.931 the investors to put more 00:44:12.972 --> 00:44:15.532 charging resources in the ground to, 00:44:15.693 --> 00:44:16.813 in a snowball effect, 00:44:17.253 --> 00:44:19.655 attract more adoption of 00:44:19.695 --> 00:44:21.456 electric vehicles in the conurbations. 00:44:24.090 --> 00:44:24.829 Yeah, absolutely. 00:44:24.869 --> 00:44:25.409 Great point. 00:44:25.550 --> 00:44:25.969 Okay. 00:44:26.150 --> 00:44:27.851 We're coming to the last 00:44:27.871 --> 00:44:29.590 sort of thirty seconds, really, 00:44:29.670 --> 00:44:30.871 of today's event. 00:44:30.911 --> 00:44:34.052 So I think I will just say 00:44:34.072 --> 00:44:35.831 thank you to Alex and Jonathan, 00:44:35.911 --> 00:44:37.753 obviously Elaine and Paul as well, 00:44:38.452 --> 00:44:39.233 who took part in the 00:44:39.652 --> 00:44:41.693 pre-interview for the webinar. 00:44:42.592 --> 00:44:44.213 As Alex referred to earlier, 00:44:44.233 --> 00:44:45.153 there will be an email 00:44:45.193 --> 00:44:46.494 going out to you this 00:44:46.534 --> 00:44:48.635 afternoon that will contain 00:44:48.675 --> 00:44:50.875 the recording of this event. 00:44:51.443 --> 00:44:52.844 And the contact details for 00:44:52.903 --> 00:44:53.744 Alex and Jonathan, 00:44:53.784 --> 00:44:56.126 if you want to contact them directly. 00:44:56.628 --> 00:44:57.789 And also an invitation, 00:44:57.949 --> 00:45:00.251 as Alex explained earlier, 00:45:00.630 --> 00:45:02.492 to a one-on-one session 00:45:02.592 --> 00:45:03.693 with the speakers today, 00:45:03.793 --> 00:45:04.693 if you feel that you would 00:45:04.733 --> 00:45:06.076 like a little bit more of a 00:45:06.115 --> 00:45:07.297 bespoke conversation. 00:45:07.336 --> 00:45:08.597 And this webinar has kind of 00:45:08.637 --> 00:45:09.719 thrown up more questions 00:45:09.759 --> 00:45:10.820 and opportunities, you think, 00:45:10.860 --> 00:45:12.240 for your authority. 00:45:13.021 --> 00:45:14.643 So we'll leave it there today. 00:45:14.682 --> 00:45:16.244 Thank you very much for watching. 00:45:16.284 --> 00:45:17.045 And we look forward to 00:45:17.509 --> 00:45:18.974 engaging with you on this 00:45:19.014 --> 00:45:21.420 topic in the coming days and weeks. 00:45:21.460 --> 00:45:22.485 So thank you so much.