Southern Water has engaged eight firms for infrastructure enhancements.
- The £3.7 billion framework aims to upgrade water networks for improved service.
- Strategic collaborations will target pipelines and treatment facility advancements.
- The initiative aligns with regulatory investment demands from Ofwat.
- New contracts suggest a doubling of investment over the next five years.
Southern Water has recently appointed eight firms to work on significant upgrades across its infrastructure network, under a comprehensive £3.7 billion capital delivery framework. This strategic initiative is aimed at transforming the water services by constructing new pipelines, pumping stations, and treatment-works enhancements. The utility firm describes this period as its largest undertaking yet, responding robustly to regulatory pressures from Ofwat demanding increased investment.
Stuart Ledger, the Chief Financial Officer of Southern Water, emphasised the significance of this development, noting that it marks a pivotal step in preparing for the upcoming regulatory investment period, which spans from 2025 to 2030 and beyond. He stated, “Southern plans to more than double its investment over the next five years to meet the needs of customers and the environment. I am confident that, working together with our partners, we will fully meet this challenge.”
The framework is divided into two principle delivery routes, with the main strategy focusing on high-complexity projects like infrastructure upgrades. Costain and MWH Treatment, operating through the CMDP+ joint venture, are key players in this category. Their collaboration encompasses a minimum seven-year term valued at £500 million, with the possibility of extending it by an additional five years. This long-standing association with Southern Water highlights Costain’s extensive experience, which dates back to every investment period since 2000.
Meanwhile, the second delivery route targets low-complexity needs, concentrating on waste management such as supply networks and sewage systems. In this segment, companies like Clancy Docwra, United Living Infrastructure Services (ULIS), and Barhale have been entrusted with tasks focusing mainly on the water sector. ULIS, in particular, values its engagement at £210 million, focusing on developing clean-water supply and transfer mechanisms.
Kier Integrated Services and Galliford Try Construction have secured their positions within the high-complexity category, tasked with non-infrastructure, above-ground operations. Infrastructure works have been allocated to Morrison Water Services. Specifically, Clancy Docwra will manage new water mains, sewer systems, and additional projects lasting five years with an extension possibility.
Ronan Clancy, Executive Director of Clancy, expressed enthusiasm about the new regulatory phase, which offers a chance to allocate crucial resources to enhance and support the country’s pipeline infrastructure. He remarked, “Clancy’s wealth of experience in delivering capital investment programmes, as well as in the maintenance of water and wastewater networks, means we are well-placed to support Southern Water in ensuring the network is resilient and efficient to maintain for the future.”
This substantial investment and collaboration are set to significantly fortify Southern Water’s infrastructure resilience and service quality over the coming years.
