Anglian Water is on the lookout for a strategic delivery partner to support its £10bn investment plans.
- This plan spans from 2025 to 2030, marking a significant upsurge in capital expenditure.
- The selected partner will manage extensive projects, including the construction of reservoirs.
- The partnership will last up to 15 years, with reviews before subsequent management periods.
- The project demands innovative delivery models to support ambitious infrastructure goals.
Anglian Water has initiated the search for a programme delivery partner (PDP) to collaborate on implementing its extensive capital investment strategy over the next 15 years. This effort kicks off with a substantial £10bn plan set for the eighth asset management period (AMP8), running from 2025 to 2030. The partner’s contract, valued at £1bn, will extend until the end of AMP10 in 2040. The selected partner is expected to play a vital role in executing the investment strategy, which encompasses massive projects like constructing new reservoirs in the Fens and Lincolnshire regions.
This initiative will involve forming a strategic framework with either a single supplier or a consortium, tasked with delivering comprehensive programme services. Anglian Water aims to establish a framework spanning 15 years, allowing for reassessment before the onset of AMP9 in 2030 and AMP10 in 2035. This significant procurement provides a strategic partner with the unique chance to contribute to Anglian Water’s capital investments. The PDP must integrate smoothly with the company to implement the plans and support future business strategies over the next decade.
Anglian Water has highlighted a notable increase in expenditure for AMP8 and AMP9, with stability expected in AMP10. The surge in investment is directed towards tackling larger and more complex projects, employing innovative delivery models such as Direct Procurement for Customers (DPC) and Specified Infrastructure Projects (SIPR), which are mandated by Ofwat for major water infrastructure projects. The delivery partner will be crucial in augmenting Anglian Water’s project management capacity and enhancing the company’s management skills during this growth phase.
The procurement process will focus on partners with strong expertise in managing portfolios and executing high-stakes infrastructure projects within a regulated framework. A key part of this venture is the delivery of the Strategic Resource Options (SRO) programme, including the ambitious reservoir projects. Anglian Water is also coordinating with other water firms on significant projects like the new reservoirs, and there is potential for contracts under the framework to be transferred to other entities under specific conditions.
The initial contracts within this framework are expected shortly after the agreement’s conclusion, with interested firms required to submit a Request for Interest (RFI) to advance to the next selection phase. An initial online event is scheduled for 21 November 2024, offering more details to registered suppliers, although not attending will not restrict the opportunity to submit bids. Successful candidates will advance to the complete tender phase early next year, with the contract expected to be awarded in the summer of 2025. As Andy Alder, managing director for major infrastructure delivery at Anglian Water, stated, ‘We’ve put collaboration at the heart of our delivery strategy for more than twenty years, and we’re excited to take it to the next level with this new strategic partnership.’
Anglian Water’s search for a delivery partner underscores its commitment to advancing its infrastructure capabilities.
