The new deal to look after water bills for Scotland’s schools, hospitals and other public buildings will see millions poured back into public services. The Scottish government said it expects to see savings of up to £40 million over the next four years.
Cabinet secretary for Infrastructure, Investment and Cities Keith Brown said: “This is the best deal for Scotland under the rules that bind us, and this contract will save public bodies up to £10 million annually for the initial three-year period of the contract with the option to extend for a further 12 months.”
AWB will manage the contract from its Edinburgh office, with Scottish Water continuing to provide the water for the 96.5 per cent of Scotland’s population it currently supplies.
The existing contract with Scottish Water subsidiary Business Stream was due to expire on March 31 but will continue until December 31 to allow for a seamless transition to the new management.
Business Stream chief executive Johanna Dow said: “We are very disappointed by the outcome, having lost by the narrowest of margins. We have a proven track record of delivering excellent results working in partnership with Scotland’s public sector over the past seven years, with savings of more than £36 million delivered over the term of the existing contract. It’s worth noting that this is a framework and regardless of the decision, several public sector agencies have already indicated their preference to remain customers of Business Stream.
“Our focus is firmly on the future. We remain the leading supplier in Scotland, and we’ll be looking to build on that position whilst acquiring more customers in England, ahead of the market opening up to competition in 2017. By continuing to offer innovative services and maintaining high standards of customer service and competitive pricing, Business Stream is ideally placed to take advantage of these opportunities.”
The contract was originally due to be awarded in February this year. AWB, with its competitive bid, has been hotly tipped to be awarded the deal but it is thought the Scottish government was urged to rethink the award because of political pressure.
This article originally appeared in WWT online.