Thu, Oct 29, 2026
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Thursday, 29 October 2026 07:35

£660m Cwm Taf Water Supply Strategy Procurement Scheme - Welsh Water invites suppliers to register for supply chain conference

Dŵr Cymru Welsh Water is inviting interested suppliers to register for a supply chain conference in November as part of the next phase of market engagement for the £660 million Cwm Taf Water Supply Strategy, ahead of the planned procurement launch in Q1 2027.

WELSH WATER Cwm Taf Water Supply Strategy

The Meet The Buyer event - Delivering the next generation of water infrastructure for Wales - will take place on 10 November 2026 at the International Convention Centre Wales (ICC Wales), Coldra Wood Drive, Newport, NP18 1DE. The event is a DCWW wide event and will cover opportunities across DCWW's programmes including a Cwm Taf WSS element, ahead of the project’s planned procurement launch in Q1 2027.

The Cwm Taf WSS element will provide an update on the scheme's progress and its developing procurement approach, together with opportunities for any interested organisation to meet potential partners or future consortium members, DCWW supply-chain organisations and local Welsh businesses. The networking opportunities are intended to support consortium formation and potential supply chain relationships ahead of the procurement launch.

Organisations wishing to attend should register via Business Wales https://wales.business-events.org.uk/en/events/supply-chain-conference-delivering-the-next-generation-of-water-infrastructure-for-wales/. Deadline to register is by 4 November 2026.

From a Cwm Taf WSS perspective, Welsh Water is encouraging participation from:

  • Infrastructure investors and major infrastructure financing bodies
  • Design, construction and engineering firms
  • Contractors and other delivery organisations

 

The water company says it welcomes participation from existing joint ventures and consortia and also encourages the formation of new partnerships where appropriate.

Pre-Procurement Data Room

Welsh Water also intends to make a data room available in November 2026 which will provide interested organisations with access to selected schemes, technical and procurement information to support their assessment of the opportunity in advance of procurement launch.

The information is expected to include:

  • Scheme and technical information,
  • The proposed procurement approach,
  • Market engagement materials, and
  • Key themes arising from market feedback across the targeted investor and lender engagement, and in-person events.

 

Details on how to access the data room will be made available in a future Planned Procurement Notice.

Cwm Taf WSS Procurement Scheme scheme overview

DCWW is seeking to progress a major investment project to design and build new water treatment works and develop an existing water treatment works (the Cwm Taf WSS Procurement Scheme). The Cwm Taf WSS Procurement Scheme has been designated under Ofwat's Direct Procurement for Customers (DPC) programme.

The Cwm Taf WSS Procurement Scheme is intended to be delivered primarily on two separate sites, one located in the vicinity of Merthyr Tydfil, South Wales and one within the boundaries of the Bannau Brycheiniog National Park.

DCWW is looking to appoint a Competitively Appointed Provider (CAP) utilising the DPC model. The Cwm Taf WSS Procurement Scheme is a two-site project - the scheme includes:

The Dan-y-Castell project

the Design, Build and Finance (DBF) of a new water treatment works on agricultural land at Dan-y-Castell Farm, along with a raw water pumping station at Pontsticill - currently with an estimated value of £434.4 million including VAT

The Llwyn-onn project

the Llwyn-onn Water Treatment Works upgrade - currently with an estimated value of £232.8 million including VAT

 

The Cwm Taf WSS Procurement Scheme includes:

  • Water Treatment Works
  • Pumping stations
  • Transfer pipelines
  • Environmental and mitigation measures
  • Treated Water Storage

 

Across its market engagement activities, DCWW has been seeking engagement from organisations capable of supporting the delivery and financing of a secure, sustainable and value-driven solution for customers through this major DPC-designated infrastructure project.

Following a competitive procurement competition, CAP contract award is anticipated to be late 2028. The CAP contract will progress the Scheme through detailed design, construction, testing and commissioning activities, including an anticipated 12 month Reliability and Optimisation Period. The Scheme will then be completed to allow commencement of the DCWW managed operational term. All dates are indicative.

Current estimated start and end contract dates are 30 November 2028 to 29 November 2058

Market engagement activities undertaken to date include a November 2025 market engagement event; targeted engagement with prospective investors and lenders, and market engagement events held in Cardiff on 8 September 2026 and London on 9 September 2026.

DCWW says it may also undertake additional market engagement activities before procurement launch and will notify the market of any additional activities and participation arrangements.

The water company is pointing out that participation in any market engagement activity is not a condition of participation in any future procurement process and that it is not liable for any costs or expenses incurred by any party in responding to the market engagement.

Submission of a response to or participating in any market engagement activity does not guarantee inclusion in any future procurement process.

Welsh Water says it may also use information obtained through its engagement activities to refine its procurement strategy, commercial model, contractual arrangements and procurement documentation.

Yesterday Dŵr Cymru Welsh Water announced that it has submitted the planning applications for the Cwm Taf Water Supply Strategy.

 

 

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