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£9bn water supply chain detailed
Heather Church - May 6, 2014

Anglian Water has named its first capital delivery partners in supply chain deals that will be worth between £6 and £9bn 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.

This 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 £44m to protect homes from the risk of flooding;
• Supporting growth in the region, with £192m spent improving and extending the sewerage network;
• Investing 117m on new water treatment works and pipelines, and £225m 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.

These 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.