Anglian Water has begun looking for a partner to deliver the £100 million treatment works as part of the water transfer resilience scheme to supply 31 million litres of water daily under Ofwat’s Direct Procurement for Customers (DPC) scheme.
The transfer and treatment project, which was approved as part of PR19, will move water from areas of excess to drier parts of the country via a 500km pipeline from north Lincolnshire to East Anglia.
The company has begun the process to find a competitively appointed partner (CAP) to design, build, finance, operate and maintain the works at Elsham, north Lincolnshire over a minimum 25-year contract.
Ofwat introduced DPC at PR19 for infrastructure projects over £100 million with the intention of driving best value for customers by making the process more competitive.
Work is set to begin in 2023 on the scheme that must provide resilience to one in 200-year droughts by March 2025, contribute to the alleviation of forecast supply demand deficits across the region, and allow Anglian to meet its statutory environmental obligations.
Projects that are suitable for delivery by DPC will be designated as a project that must be delivered by these mechanisms and then tendered by the company.
Originally Ofwat said the whole project should be delivered by DPC however Anglian said it would not be able to comply with its environmental obligations without some components being done in-house. The company will therefore be submitting an interim determination application for funding because PR19 only included £9.4 million for project design and tender.
The expected design life of the project is 40 years for the water treatment works and conditioning plant, while the transfer pipeline is projected to have a 120 years life expectancy.
The project is part of Anglian’s Water Resources Management Plan (WRMP), which sets out how to make the east of England resilient to drought over the coming 25-years. The region faces a daily deficit of 30 million litres of water by 2025 if no action is taken.
Chief executive Peter Simpson said: “The construction and operation of a new water treatment facility in Elsham is crucial in ensuring we can keep taps running for our customers, and as importantly, without having a detrimental impact on the environment.
“We’re proud to be one of the first companies to embark on Ofwat’s DPC process to ensure we’re getting the best value for money for our customers while maintaining or industry leading standards of providing them with the best quality drinking water.”
The company is seeking interested parties for pre-market engagement, to gauge capability, interest and to support the development stage of the project.
Last year the company announced the engineering firms forming its Strategic Pipeline Alliance as Costain, Farrans, Jacobs and Mott MacDonald Bentley. The contract worth more than £350 million will deliver the interconnecting pipes to move the water north to south.
Two other projects are currently being developed for delivery by DPC: Welsh Water’s Cwm Taf water treatment works, and United Utilities Haweswater aqueduct resilience programme. Company licence conditions must be modified to deliver the schemes.