SUSTAINABLE DEVELOPMENT COMMITTEE: 13 JUNE 2012

OUTER HEBRIDES PORTS AND HARBOURS STUDY

Report by Director of Development

PURPOSE OF REPORT The Comhairle requires to commission the services of specialist consultants to assess the feasibility of Outer Hebrides harbours as support bases for the emerging Marine Renewable Energy industry West of Hebrides. This report seeks authorisation to proceed to procurement.

COMPETENCE 1.1 There are no legal, financial or other constraints to the recommendations being implemented.

SUMMARY 2.1 The area West of Hebrides is quickly gaining prominence as Europe’s area of best resource for the generation of electricity from waves. This view is confirmed by the and The Crown Estate who recently designated West of Hebrides as one of only two preferred deployment areas for the Scottish Government’s prestigious £10m Saltire Prize, awarded to the first developer to generate 100MW/hr over a continuous two year period from the power of the sea.

2.2 Regional Locational Guidance from the Scottish Government also confirms that the seas around the Outer Hebrides could become a very important area for the deployment of Offshore Wind arrays. The Comhairle is already in discussion with Statoil over this potential and each Statoil installation is capable of generating up to 600MW.

2.2 In order to maximise supply chain benefits from the growing Marine Renewable Energy industry West of Hebrides, it is important that a detailed inventory of local port facilities is available for developers aiming to deploy there. This will allow thee developers to identify ports which can be used immediately but will also provide a guide to investment as these ports are upgraded to keep pace with a rapidly expanding industry. Highlands and Islands Enterprise have committed to match fund the Comhairle in commissioning this study and sufficient resources exist to cover the Comhairle’s contribution. A draft brief is appended for approval and sufficient resources are in place to fund this study.

RECOMMENDATIONS 3.1 It is recommended that the Comhairle agree to commission specialist advice on the suitability of Outer Hebrides ports as support bases for the emerging marine renewable energy industry in order to direct investment and maximise local capture of supply chain benefits as per the Invitation to Quote at Appendix 1.

Contact Officer John Cunningham, 01851 622684, [email protected] Appendix 1 Brief for Outer Hebrides Ports and Harbours study Background Paper None

APPENDIX 1

INVITATION TO QUOTE SCOPING STUDY: OUTER HEBRIDES HARBOUR STUDY 1. Purpose

1.1 The Outer Hebrides are home to one of the best marine renewable energy regimes in Europe and imminent upgrades to Grid infrastructure to the islands will facilitate the export of 450MW of electricity from renewable sources, a significant proportion of which will be from wave.

1.2 While the principal marine renewable energy opportunity around the Outer Hebrides relates to , there are also opportunities for tidal stream development, particularly in the channels between islands.

1.3 The marine renewable energy resource is such that the Scottish Government and The Crown Estate have designated the area West of Hebrides as one of only two preferred wave power deployment areas for the prestigious Saltire Prize. The Saltire Prize will be awarded to the first team to generate 100MW/hr over a continuous two year period using only the power of the sea.

1.4 The scale of the resource and the existence of Saltire Prize designation is driving interest in the West of Hebrides area from all over the world. A number of developers have secured seabed leases from The Crown Estate and are underway with detailed scoping for significant wave power deployments. These developers need to know the level of harbour infrastructure available to them in the Outer Hebrides and this Study will assess all island harbours for feasibility in terms of providing a support and maintenance base for marine renewable energy developers operating in the waters around the Outer Hebrides.

2. Background

2.1 The Outer Hebrides are home to one of the best marine renewable energy regimes in Europe, making the area ideal for the generation of electricity from marine renewable energy, for local use and for export. According to , “The west coast of Lewis, where Atlantic swells arrive at the coast having been uninterrupted by any land mass for thousands of miles, has been identified as one of the best locations in Western Europe for the deployment of our Oyster array”.

2.2 Renewable energy, and particularly marine renewable energy, is viewed as the key economic driver for the Outer Hebrides going forward and it is absolutely essential that as many of the supply chain activity as possible is captured within the islands. For marine developers, a key consideration is the presence of adequate port facilities, with good road access, to support the deployment process and future maintenance activity.

2.3 Three major developers – Aquamarine Power, and Voith Hydro – have already secured significant leases for deployments to the west of Lewis. The aspiration of the Outer Hebrides Community Planning Partnership is that fabrication of these devices takes place at Arnish Yard in Stornoway, supported by marine renewable energy research at Lews Castle College (University of the Highlands and Islands) and with the local supply chain playing a key role in lifetime maintenance and servicing. To realise this vision, developers have to be made aware of the capacity of local harbours to support their development and maintenance activity. 2.4 Scottish & Southern Energy, Transmission Operator for the Highlands and Islands, has commenced procurement on a 450MW Radial Connector for the Outer Hebrides which will link the islands to the UK’s Main Interconnected Transmission System (MITS) and will facilitate the movement of generated Hebridean marine renewable energy to market. The project includes the potential to upgrade the link to 900MW by the addition of a second submarine cable across the Minch in due course. This new connection opens the way for the full commercialisation of the marine renewable energy industry over coming years.

2.5 Marine energy developers have supplied the following data in relation to the rate of deployment West of Hebrides and it is important that feasibility assessment of potential harbour bases starts now.

Developer Total Capacity 2014 2015 2016 2017 2018 2019 2020 Aquamarine 40MW 3MW 7MW 15MW 15MW Pelamis 10MW 5MW 5MW Wavegen 20MW 4MW 4MW 6MW 6MW Statoil 600MW 210MW 300MW 90MW

3. Aims and Objectives

3.1 The key aim of this Study is to provide a comprehensive overview of the feasibility of all Outer Hebrides harbours as service and maintenance bases for the marine renewable energy industry. As a secondary aim, the Study should also provide an assessment of the capability of all harbours to support Offshore Wind and marine Oil & Gas development. In the course of the Study, the main Ports of Entry should be assessed for their suitability as a landing point for Onshore Wind plant and materials.

3.2 The key objectives of this Study are: Part 1 of the Study (‘ DEVELOPER REQUIREMENTS ’) will involve detailed research into the operational requirements of each Harbour user, presented in a format that ensures easy comparison across users and technologies. While the focus is on marine renewable energy developers, the assessment should not be restricted to marine renewable energy developers only but should include the requirements of Offshore Wind, marine Oil & Gas, aquaculture, commercial fishing and leisure users. Part 1 of the Study will involve detailed discussion with marine renewable energy developers in respect of each device type proposed for the Outer Hebrides and the various other harbour users. The key output from Part 1 will be a report that outlines the needs and requirements of individual developers and makes recommendations as to how these needs can be most economically and effectively achieved. Part 2 of the Study (‘ FACILITY ASSESSMENT ’) will involve a detailed assessment of each of the following harbours: • Port of Ness • Skigersta • Carloway • Breasclete • Kirkibost • Miavaig • Stornoway • Arnish • Brevig • Tarbert (including anchorages in West Loch Tarbert) • Stockinish • Leverburgh • Berneray • Lochmaddy • Kallin • Lochboisdale • Eriskay • Castlebay • Ardveenish The harbours shown in bold are the main Ports of Entry to the Outer Hebrides and ferry ports. Each Harbour should be assessed against the following features: • ownership of harbour and any landowner constraints in the area • proximity to deployment areas and estimated shipping times • interface with the Deep Water Shipping Route West of Hebrides • presence of navigable channels (with depth) in and out of Harbour • availability of sheltered anchorages • existence of any emergency deep water anchorages • impact of sea water Fish Farm cages on navigation • existence of any environmental designations which may constrain use • current level of usage and identity of main user groups • quayside length and water depth alongside • existence of slipway facilities and width of any slipway • potential for modular quayside extension • availability / suitability of onshore laydown and development areas • shoreside services (including electricity, water and waste water services) • craneage capacity onshore or suitability for crane barge deployment • scope for local sub-contracting of service / maintenance activity • capacity of the road network from point of fabrication / entry to each Harbour, considering maximum loads and manoeuvring constraints • where available, a plan of the harbour should be provided

4. Research Design and Methodology

4.1 The consultant should outline how they propose to achieve the above outputs. The suggestion of additional, relevant outputs will be welcomed. The above outputs should be presented in report format including any additional narrative necessary for establishing context.

4.2 In order to effectively deliver the Study, the consultant will engage with a range of key stakeholders including Comhairle nan Eilean Siar, Caledonian Maritime Assets Limited (CMAL), Stonoway Port Authority, Bi-Fab (Arnish), Highlands & Islands Enterprise, The Crown Estate, local Harbour User Groups, local Grazings Committees, Aquaculture interests, the Outer Hebrides Inshore Fisheries Group, the Outer Hebrides Tourism Industry Association, HM Coastguard, Scottish & Southern Energy, Lews Castle College (Greenspace Energy Research) and Community Landowners / harbour developers.

4.3 A Steering Group comprising local interests and led by Comhairle nan Eilean Siar and Highlands & Islands Enterprise will be established to direct the Study process. Consultants should budget for an Inception Meeting, to be held in Stornoway, when the Steering Group will provide more detailed guidance and direction. 5. CONSULTANTS' SPECIFICATION

5.1 The project requires a range of disciplines and specialist experience. These may be sourced from within a single multi-disciplinary firm or from a consultant team assembled for the Project.

5.2 Successful consultants will need to demonstrate relevant experience and possess a relevant range of skills/knowledge such as technical understanding of a project of this nature, knowledge of the renewable energy sector, knowledge of the maritime environment, understanding of marine renewable energy technologies and an understanding of electricity transmission in order to reduce lead in time and level of input required from project partners.

5.3 Consultants should be able to demonstrate a successful track record of involvement in projects which are of direct relevance to this piece of work.

5.4 The Consultant’s staff should hold relevant qualifications and be suitably experienced in providing services appropriate for the requirement.

6. HOW TO SUBMIT QUOTATION DOCUMENTS

6.1 Your quote must include a detailed Method Statement in line with the pro-forma set out in section 6.2 (preferably in the same order), clearly describing how you would undertake this study.

6.2 Proposals should follow the structure and order detailed below. This is for the purpose of evaluating and scoring different sections of each proposal received.

Section Information Required Section Introduction and background 1 This section should include an overview of your business/organisation in the context of our specific requirements for this contract, and give a general introduction to your understanding of and approach to the brief.

Section Methodology 2 Please illustrate how you would manage and undertake each of the activities defined in the scope of work, and required to meet the aims and objectives of the study.

Your methodology should include all key tasks and the duration and resource required.

Include a workplan and timetable showing key reporting stages and detailing outputs at each stage.

Section Pricing Proposals 3 Pricing should reflect the activities defined in your methodology.

Each stage of the methodology should be costed and tasks itemised. Please provide a total project cost.

Pricing should include all charges, fees, day rates, estimated resource requirements for each stage of the contract where applicable.

Travel and subsistence costs should be included in the project price. At least two meetings with Comhairle will be required.

The number of days and corresponding day rates for all levels of personnel should be provided where appropriate.

You should also indicate and estimate any third party costs.

Section Challenges 4 Please describe the key challenges of the project that you will face and how you plan to manage these challenges and ensure that the project is delivered on time and budget.

Section Project Management / Organisation 5 Explain your proposed project management structure and organisation including any sub-contract arrangements that you will depend on to deliver the contract and explaining how you will manage this.

Please identify the Project Manager and illustrate their role and activities and how they will interface with the other members of the proposed team and with the Project Steering Group.

If personnel are from separate firms, please indicate how the team would be organised and managed and whether the proposed team members have worked with the Lead Consultant on other projects.

Section Project Team 6 This section should detail all members of the proposed delivery team.  The names of the Lead Consultant and all other members of the proposed consultancy team.

 Brief CV’s for all team members including professional qualifications, core skills and details of relevant successful projects.

 An outline of the proposed roles of the Lead Consultant and other team members in this Project. In particular please indicate who would undertake the work on the various pieces of work required.

Section Contract Risks 7 Please assess and indicate any contract risks that you have identified and how you would mitigate these risks.

Section Client List and References 8 Please provide three examples of current and recent clients and indicate the date and longevity of projects.

Please also provide three (short) relevant Case Studies indicating the key challenges, successes and lessons learned.

Please provide three reference contact details. These will only be taken up in the event you are short listed. 6.3 You must also complete and return the Consultants Practice Questionnaire at Appendix 1 and the Form of Offer document at Appendix 2.

6.4 Organisations submitting a quote should note that as a Scottish Public Authority, the Comhairle is bound by the provisions of the Freedom of Information (Scotland) Act 2002 (“the Act.”). All information submitted to the Comhairle may therefore need to be disclosed and/or published by the Comhairle in compliance with the Act (the decisions of the Comhairle in the interpretation thereof shall be final and conclusive in any dispute, difference or question arising in respect of disclosure under its terms), any other law, or, as a consequence of judicial order, or order by any court, tribunal or body with the authority to order disclosure (including the Scottish Information Commissioner).

6.5 In terms of the Freedom of Information (Scotland) Act 2002, information may be exempt from disclosure if it is:  a trade secret  information which is likely to substantially prejudice someone’s commercial interests if disclosed (this could be the interests of the organisation submitting a quote or the Comhairle’s).  personal data where disclosure cannot be justified in terms of the Data Protection Act 1998.  subject to an enforceable obligation of confidentiality. (This means that the information should be recognisable as confidential in nature and must not be in the public domain already; it must have been received in circumstances which impose an obligation to maintain confidentiality on the person receiving it; and any unauthorised disclosure would cause harm to the confider.)

6.6 Please note that information which you submit either in your quote or as part of any subsequent contract may be shared with relevant agencies or businesses outwith the Comhairle.

6.7 Evaluation of proposals will be based on a number of quality issues as well as cost. The maximum budget available is anticipated to be in the region of £15,000, exclusive of VAT, but competitively priced tenders are being looked for. The key evaluation criteria and their weighting are as follows:

# Criteria Weighting Quality Elements 1 - 4 1 Competence to deliver the proposed contract 15% 2 Track record of similar projects and clients 15% 3 Proposed team and individuals 15% 4 Methodology 20% 5 Price 35% Total 100%

7. CONTRACT PERIOD

7.1 The Consultants will indicate the expected duration of the contract in their proposed options. The Comhairle expects the contract to start immediately and the anticipated contract duration is eight weeks from the date of appointment.