Thames Water signs £4bn AMP6 contracts

The water company has signed deals with the eight2O and infrastructure alliance groups to deliver capital investment programmes, and network and developer services between 2015 and 2020.

The eight2O venture comprises two design and build joint ventures – Costain and Atkins; and Skanska, MWH Treatment and Balfour Beatty (SMB) – as well as a programme manager in MWH and technology innovator IBM. This will deliver between £2 billion and £2.5 billion of work over the AMP6 period with the potential to extend this to 2025.

The infrastructure alliance is made up of two joint ventures: Agility, made up of J Murphy and Sons, and Morrison Utility services; and KCD, involving Kier Services and Clancy Docwra.

This arrangement is set to deliver £1 billion worth of water network and developer services between 2015 and 2020, with an option for a further £500 million in additional network and metering services.

Thames Water chief executive Martin Baggs said: “The alliances will change the way we work and change the mindset, but it’s fantastic to have a team that’s all working together, focusing on our priorities of health and safety and customer service. Problems will be problems for all of us but we’ll share the benefits as well.”