Anglian Water is today launching the procurement process for a Programme Delivery Partner (PDP) to support its capital investment delivery over the next fifteen years. This will begin with the water company’s biggest ever business plan for Asset Management Period 8 (AMP8) between 2025 and 2030 which, if signed off by Ofwat in December, will be worth £10 billion.
The £1 billion agreement, which is set to last for 15 years until the end of AMP10 in 2040, will see a partnership with Anglian Water across its entire investment programme to drive frontier delivery for its customers and the environment. It will include major projects such as its two new reservoirs, in the Fens and Lincolnshire, and all capital delivery proposed as part of its next business plan.
Anglian Water's PR24 business plan shows a considerable ramping up of capital expenditure over AMP8 and AMP9 before levelling off in AMP10 (years 2025 to 2040). The water company said the increase in scale is to be achieved by delivering bigger more complex projects in greater numbers, with a significant volume through new delivery mechanisms such as Direct Procurement for Customers (DPC) and Specified Infrastructure Projects (SIPR).
Delivering that increase in volume and complexity will require the PDP and Anglian Water to operate in a fully integrated team with Anglian Water relying on the PDP to provide the necessary capacity while also supporting the development of Anglian Water's management capabilities. Anglian Water is pointing out that the PDP will therefore have a critical role in the successful navigation of this transitional period and any change in partner midway through the 15 years would cause disruption and introduce an avoidable risk.
This is one of the largest contracts of its type offered to date in the water industry, presenting a unique opportunity for a strategic partner to work across Anglian Water’s entire, wide-ranging capital investment programme. The PDP will work in a fully integrated and collaborative way with Anglian Water to deliver this programme, as well as its subsequent business plans for the following decade.
Andy Alder, Managing Director for Major Infrastructure Delivery said:
“We’ve put collaboration at the heart of our delivery strategy for more than twenty years, through our industry-leading alliancing models, and we’re excited to take it to the next level with this new strategic partnership.
“We already know that working collaboratively across the value chain helps drive consistency, efficiency and innovation so that we can deliver the best value for money for our customers and protect the environment that we work in.
“This Programme Delivery Partner will help us roll out this approach across our whole capital programme, which is vital to help us deliver what’s set to be our biggest investment ever into our region.”
The company is launching its full call for competition today, with shortlisted candidates expected to continue into the full tender phase early next year, and the contract awarded in summer 2025.
Click here to access the tender documentation.
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