Cardiff Closed Road Circuit Delivery and Operation

Description

The procurement process aims to appoint a Delivery Partner to deliver and operate a Closed Road Cycle Circuit Facility in the Leckwith area of Cardiff (The Scheme). This contract will be classified as a concession contract under section 8 of the Procurement Act 2023. The Scheme is a priority development for National Governing Bodies for Cycling, Triathlon and Athletics (Running) and has been identified as a Principal Legacy Development for the Tour de France, which comes to Wales in 2027. B1.3 The parties to enter into a Development Agreement for the construction of the project. Once constructed, a Property Lease will be entered into together with a Management Agreement outlining core expectations for the operation of the Scheme. The Scheme is anticipated to cost in the order of c£4.5m and the aspiration (although there is no guarantee) is for this to be partly funded through Legacy Funding and other associated Grants. Other than provision of the land (via long-lease) and supporting with grant applications where appropriate, the Contracting Authority will not be funding or financially supporting the delivery and operation of the Closed Road Circuit by any other means and any funding shortfall will need to be met by the Delivery Partner. As the Contract is a concession contract, the Delivery Partner will be at risk to changes in the market. In simple terms, profit will only be made on the facility if it is being used. If it is used more, the Delivery Partner will likely make more profit. In considering the financial modelling for the project, it should be noted that there is a requirement in managing the project for at least 20% of the net profits to be reinvested in the facility and/or engagement and encouragement for participation in sports.

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