Southern Water has secured eight key suppliers for its ambitious infrastructure upgrade, marking a pivotal step for upcoming projects.
- The utility firm is set to invest a staggering £31 million at Horsham sewage works, as part of its preparation for AMP8 starting April 2025.
- Eight companies have been awarded contracts across two frameworks: the strategic delivery partner and the infrastructure low complexity delivery route, with a combined value of £3.7 billion.
- The strategic delivery partners will focus on major projects, including pipelines and pumping stations, while the infrastructure framework targets design & build on water networks.
- Southern Water aims to more than double its investment in the upcoming years to better serve customers and the environment, securing its supply chain for AMP8.
Southern Water has ambitiously engaged eight suppliers for its capital delivery frameworks, pivotal for the company’s strategic development over the next five years. Investment plans unveiled include a £31 million upgrade to the Horsham sewage works, aligning with the forthcoming asset management period 8 (AMP8), commencing in April 2025.
Contracts awarded to these companies focus on two primary capital delivery frameworks: the ‘strategic delivery partner framework’ and the ‘infrastructure low complexity delivery route framework’. The combined frameworks represent an estimated total expenditure of £3.7 billion, initially spanning seven years for strategic delivery partners and five years for low complexity delivery, with potential extensions included.
Key infrastructural projects under these frameworks involve substantial works such as the construction of new pipelines and pumping stations, alongside non-infrastructure advancements like enhancing water supply systems and wastewater treatment facilities. Suppliers participating in these initiatives will focus on either water or waste, typically encompassing design and build projects pertaining to water supply networks or sewer systems.
In particular, Costain and MWH Treatment, through the CMDP+ joint venture, Kier Integrated Services, and Galliford Try Construction, have secured contracts within the strategic delivery partner framework for above-ground non-infrastructure works. Meanwhile, Morrison Water Services has garnered a position for infrastructure-oriented tasks within the same framework.
The infrastructure low complexity delivery route framework, valued at £210 million, involves contractors such as Clancy Docwra, United Living Infrastructure Services, and Barhale focusing on water projects. Additionally, Clancy Docwra, J Browne Construction, and Morrison Utility Services will manage wastewater projects within this framework.
Southern Water’s chief financial officer, Stuart Ledger, emphasises the significance of this move, acknowledging it as a crucial milestone toward the next regulatory investment period. He states, “This announcement marks an important milestone in our preparation for the next regulatory investment period 2025-30 and beyond.” Southern Water anticipates doubling its investment over the next five years to adequately meet customer and environmental expectations.
This strategic move by Southern Water marks a significant advance in its infrastructure capabilities, aligned with future regulatory requirements.
