Southern Water has launched a market engagement exercise seeking supply chain interest in its £1.3 billion Hampshire Water Transfer and Water Recycling Project (Phase 3). The water company is “strongly encouraging” market involvement including potential investors and supply chain organisations.
The water company has issued a Periodic Indicative Notice (PIN) to conduct the market testing exercise and act as a Request for Information (RFI). This is Phase 3 of an ongoing Market Engagement exercise. Southern Water is planning to deliver an industry-leading construction project to provide and futureproof long-term water supply resilience in its region.
There will be opportunities for organisations to ask questions both within the RFI and bilateral sessions.
The RFI will be followed by a series of virtual bilateral (one-to-one) sessions in November 2024 and early 2025 via Microsoft Teams. Southern Water said:
“We are strongly encouraging the market including potential investors and supply chain organisations to attend the attend the one-to-one/bilateral meetings with their potential partnering organisations.”
The Hampshire Water Transfer and Water Recycling Project (HWTWRP) is the Strategic Resource Option of Southern Water's Water for Life Hampshire programme. The project will create a greater water resilience, to support with drought resilience, population growth, climate change, and Environmental protection and improvement. The current preferred route uses Water Recycling and Water Transfer methods which will include an element of tunnelling.
Image source Southern Water
The HWTWRP consists of:
- a Water Recycling Plant, Tunnel & Pipeline between the Water Recycling Plant, and Bedhampton & Havant Springs
- a High Lift Pumping Station, and
- a Tunnel & Pipeline between the High Lift Pumping Station and Otterbourne Water Supply Works (approx. 42km).
Southern Water will utilise a Competitively Appointed Provider to deliver the Design, Build, Finance, Operate and Maintain project. The project is to be procured using Ofwat’s new Direct Procurement for Customers approach.
Under the Direct Procurement for Customers model, Southern Water plan to openly tender for a competitively appointed provider. Southern Water is carrying out several market engagement exercises to support the procurement.
Southern Water would like to gain market insight on a range of topics which are critical to the programme, including but not limited to:
- Fixed Price Plus
- Indexation during Construction
- Indexation during Operations
- Competitively Appointed Provider Revenues
- Payment Mechanism
- Energy Costs
- Lender Specific Questions
Southern Water are keen to update the market on progress as the project matures and are looking to test the market's interest in the HWTRTP.
The water company is providing a Project Information Pack 2024 as part of the market engagement and has developed a list of questions relating to the information provided.
Southern Water says the RFI does not constitute any commitment to undertake any procurement exercise nor form a commercial strategy in a particular form and is reserving its position as to whether or not to undertake a procurement.
Further Market Engagement phases will be held in 2025.
The estimated date of publication of a formal contract notice is 30 September 2026
Deadline for responding to the Request for Information is Friday 22nd November 2024 - click here to access the PIN documentation.
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