Preferred bidder selected for landmark UK water project
United Utilities has announced its preferred bidder to design, build, finance and maintain the replacement of six tunnel sections of the Haweswater Aqueduct, part of its Haweswater Aqueduct Resilience Programme, or HARP.
Following a competitive tender process, the consortium identified as the preferred bidder to form the Competitively Appointed Provider (CAP) is STRABAG Equitix Consortium.
STRABAG and Equitix will be joint partners in the CAP, the project company responsible for the concession agreement with the client, United Utilities, who is responsible for water and wastewater services in the North West of England.
The original aqueduct, completed in the 1950s, supplies water from the Lake District to communities in Cumbria, Lancashire and Greater Manchester. Six tunnel sections along the 110km aqueduct route will be replaced, ensuring a resilient supply of quality drinking water for future generations.
At an estimated construction cost of around £2.5-2.9bn, HARP will be one of the largest water infrastructure projects undertaken in the North West.
This complex project is being delivered through a Direct Procurement for Customers (DPC) model to ensure it provides the best value for customers. It is the first time such a model has been used in the UK water sector. The procurement process is now in its final stage of financial close, with contract award planned for the first half of 2025, subject to consent by water regulator Ofwat.
Neil Gillespie, Transformation and Strategic Programmes Director at United Utilities, said: “This is a significant milestone in our journey to replace the Haweswater Aqueduct tunnels so that we can continue to provide customers in the North West with a reliable supply of quality drinking water into the future. This is the culmination of a lot of hard work from a dedicated team, and we are really pleased to have now established our preferred bidder.”
Equitix CEO, Hugh Crossley, said: “Equitix is delighted to be selected as preferred bidder with our consortium partner STRABAG, to deliver this strategically important project for United Utilities and Ofwat. Our strong track record in delivering greenfield projects, coupled with our approach to partnerships will lead to the successful delivery of this significant project that will benefit communities in the North West for generations.”