Thames Water has rejected the suggestion in an article published in The Guardian last week that questioned whether the Tideway Tunnel is unnecessary.
In a letter to the newspaper on Tuesday, Andy Mitchell, CEO of the Thames Tideway Tunnel described the suggestion that the Tunnel is not needed as “ deeply misguided.”
Mr. Mitchell said:
“The fundamental problem is that London’s Victorian sewerage system, while still in very good condition, now lacks the capacity to meet the needs of an ever-growing population. Last year 55m tonnes of sewage was discharged into the tidal river Thames. “A few minor works” could not solve that.”
“The reality is that the capital needs both the tunnel and sustainable drainage systems. It is not an either/or choice, as other world cities such as Washington DC are already demonstrating. “
He concluded by saying that the £70-80 a year average increase in Thames Water’s wastewater charge to cover the costs of the Tunnel is a worst-case scenario, adding:
“ We are confident we can deliver the project well within the £4.2bn budget.“
"Investors - losing interest?"
A report today by Inspiratia, a specialist consultancy which provides real-time data, forward-looking analysis, and market news for clients in the global infrastructure and renewables sectors, is suggesting that investors are losing interest in the Tunnel. Inspiratia’s Market Insight section today states:
“Thames Tideway Tunnel was heralded as the big greenfield opportunity in the UK market when the tender for the £2.8 billion (€3.53bn $4.4bn) infrastructure provider role to the project finally launched in June. However, investor interest was markedly lower than expected when indicative bids were lodged last month, causing some to doubt the viability of the development in its current form.”
Around £1.4bn of the Thames Tideway Tunnel’s construction cost will be financed by Thames Water and £2.8bn by the IP. Thames Water’s contribution will fund development costs, enabling works and interface works. To date, Thames Water has funded around £641m in development costs, including £323m on land acquisition.
With the UK government demanding a 50% reduction in storm overflow spills by 2029, the era of reactive management is over. Speaking in the House of Commons on 21 July 2025, then environment secretary Steve Reed said, “This Government will cut water companies’ sewage pollution in half by the end of the decade.”
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