Southern Water has launched the supply chain market engagement process for its upcoming Water for Life – Hampshire water resource construction project.

The water company has issued a Periodic Indicative Notice setting outs plans for market engagement with interested suppliers for key elements of the project,

Southern Water is planning to deliver a construction project to provide long-term water supply resilience to Hampshire – and will utilise a Competitively Appointed Provider (CAP) to deliver the project which will be procured using Ofwat’s new Direct Procurement for Customers (DPC) approach.

The water company is now seeking to test the market's interest for the Design, Build, Financing, Maintenance and Operation of the project, which currently has an estimated total value of £459 million.

The contract value, which subject to change, is made up of £404 million capex and £55 million opex over the DPC contract term.

Hampshire faces water shortages due to climate change and growing population pressures - the Water for Life Hampshire (WfLH) programme will create greater water resilience, especially during dry weather and drought.

Several options for a solution are currently being explored, with a preferred option of using water recycling and water transfer methods being chosen for further development.

Under the DPC model, Southern Water will competitively tender for a CAP and is now in the process of carrying out several market engagement exercises to support the procurement.

Southern Water would also like to obtain market insight on long lead items which are critical to the programme, which include pipeline and pipe requirements.

The Market Engagement activity will take the form of a virtual Launch day on 16th February 2022, followed by a series of virtual one to one meetings between February 2022 and April 2022 via Microsoft Teams and Webex.

Further Market Engagement phases will be held throughout 2022 and 2023.

Click here to access the Periodic Indicative Notice.

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