Last week’s announcement of Anglian Water’s first capital delivery partners has flagged up supply chain deals that will be worth between £6 and £9 billion over 15 years, and support upwards of 10,000 jobs across the region.
Balfour Beatty, Barhale, Grontmij, MMB (a joint venture of Mott MacDonald and JN Bentley), MWH and Skanska are the first partners to be confirmed. They will deliver around half of the total investment programme. Black and Veatch has also signed as a reserve partner.
The group of companies make up the first of four alliances to be announced by the water company this year. These alliances will collectively deliver every kind of work for Anglian Water, ranging from building large new water treatment works to repairing small leaks and connecting new properties to the network.
The supply chain contracts begin in 2015 and are expected to run until 2030, with a review every five years.
Over 10,000 jobs, many of them skilled, will be supported by the contracts. Schemes that they will work on over the next five years will include:
- Investing £44 million to protect homes from the risk of flooding.
- Supporting growth in the region, with £192 million spent improving and extending the sewerage network.
- Investing 117m on new water treatment works and pipelines, and £225 million on maintaining existing water pipes and treatment works, securing supplies and helping move water around the region.
- Connecting hundreds more homes to the mains sewerage network for the first time for an investment of around £71m.
The partners have committed to supporting Anglian Water’s 10 business plan outcomes which include satisfied customers and a smaller carbon footprint.
The outcomes were approved by Anglian Water’s largest ever customer consultation involving around 50,000 people, which allowed the company to make plans on the basis of customers’ priorities.
As a result the new partners will work on a ‘total outperformance’ basis – they will only recover head office costs and earn profit when they outperform Anglian Water’s business plan.
Chris Newsome, Asset Management Director, Anglian Water, said:
“These partnerships are formed on the principles of making our business as efficient as it can be, and ensuring our customers are completely satisfied with what we do for them. Our progressive approach to these partnerships is also fundamental to our ability to keep bills below inflation for the six years through to 2020.”
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