The Mayor's Executive Decision Making committee was scheduled to consider a report on generating income through digital advertising concession contracts. This report outlined a strategy for procuring contracts for digital advertising infrastructure and electric vehicle (EV) charging infrastructure with integrated advertising screens.

Updated Income Generation Through Digital Advertising Concession Contracts

The meeting was scheduled to discuss a proposal to procure two concession contracts for the installation and operation of digital advertising infrastructure and electric vehicle (EV) charging infrastructure, which would include associated advertising screens on the public highway. The report indicated that these contracts would be awarded following a competitive procurement process compliant with the Procurement Act 2023 and the Concession Contracts Regulations.

The report also sought delegated authority for the Corporate Director, Communities, in consultation with the Mayor, to approve subsequent procurement exercises for additional sites as they are identified, to approve the award of concession contracts, and to approve the execution of associated contractual documentation. This approach was intended to maximise commercial opportunities from the borough's highway assets while ensuring compliance, transparency, and proportionality in procurement. The concessionaires would be responsible for the upfront capital costs of the infrastructure.

The report recommended approving the procurement strategy for two initial contracts:

• Digital advertising boards, with a 15-year contract term.
• EV charge points with integrated digital advertising screens, also with a 15-year contract term.

It was also recommended to authorise the Corporate Director, Communities, in consultation with the Mayor, to approve subsequent procurement exercises, contract awards, and the execution of any necessary documentation.

The report detailed that previous procurement exercises for digital advertising contracts with shorter, seven-year terms had received no bids. Market engagement suggested that longer contract terms were necessary for concessionaires to recover their investment. The proposed 15-year term aligns with supplier investment cycles and public realm objectives.

The estimated value for the initial digital advertising board contract was £5 million, and for the EV chargers with digital screens contract, it was £15 million. These figures represent the estimated income to concessionaires over the life of the contracts. The estimated income to the Council from five advertising billboards was projected to be between £960,000 and £1,270,000 over 15 years. For EV chargers with digital advertisement screens, an example of 23 locations suggested an annual income of £115,000, or £1,725,000 over a 15-year contract.

The report also addressed equalities implications, stating that tender processes would require concessionaires to demonstrate how they would promote equality of opportunity, prevent discrimination, and foster good relations. Specific requirements would be included to ensure accessibility for people with disabilities, referencing standards such as PAS 1899:2022 Electric Vehicles Accessible Charging Specification, the Department for Transport's Inclusive Mobility guide, and BS8300-1:2018. Contactless payment options would also be required for EV chargers.

The report highlighted that the Procurement Act 2023 prohibits the use of frameworks for public services concessions, necessitating standalone competitive procurement exercises for each concession contract. This approach ensures open and fair competition, transparent evaluation, and proportionate criteria. The evaluation of tender submissions would consider financial return, quality of infrastructure, operational proposals, deliverability, accessibility, safety, public realm considerations, and environmental sustainability.

The revised timescales for delivery indicated a procurement process in Q1 2026/27 and contract award in Q2 2026/27. The report also outlined social value and sustainability considerations, requiring bidders to demonstrate contributions to local employment, environmental sustainability, responsible advertising, and community engagement. Risks identified included market response, planning approval delays, grid capacity constraints, concessionaire insolvency, technology obsolescence, and revenue assumption variations, with proposed mitigations for each.