The Tender Round Process Explained

Periodically, The Crown Estate invites expressions of interest for a tender round for the development of areas of seabed within UK waters as aggregate dredging areas. On the basis of the responses to the expressions of interest The Crown Estate decides whether or not to hold a tender. Interested parties are permitted to undertake non-exclusive sampling of prospective areas prior to the tender process, providing relevant statutory approvals are obtained.

The call for applications for the tender documents is advertised in late spring and the closing date for bids is usually in late autumn. The results of the tender are known at the beginning of the following year.

The Crown Estate assess the tender applications based on:

• work programme
• resource quality and quantity
• area and location of seabed
• environmental impact
• monitoring and control
• value of royalty offered
• estimated market demand.

Successful bidders are granted a short prospecting licence to undertake further investigations of the potential sites, in conjunction with an overall five-year option to obtain a dredging permission. Subject to the results of the prospecting, the company decides whether it wishes to proceed to a permission application managed by the Marine Management Organisation (MMO). The Crown Estate will not issue a licence for dredging without a positive dredging permission.