Consortium of STRABAG and Equitix is preferred bidder for United Utilities' water project in the UK
3 January 2025
-
- STRABAG-Equitix consortium identified as the preferred bidder by United Utilities (UU) to deliver the Haweswater Aqueduct Resilience Programme (HARP)
- Concession project in order to upgrade 110 km water pipeline system in North West of England
- Contract award planned for the first half of 2025
- STRABAG UK Limited will be responsible for the design and construction
The STRABAG-Equitix consortium is delighted to announce today that it has been identified as the preferred bidder by United Utilities (UU) for the Haweswater Aqueduct Resilience Programme, otherwise known as HARP. The focus is now on the contract award, which is planned for the first half of 2025.
HARP is a major scheme to maintain drinking water supplies across Cumbria, Lancashire and Greater Manchester for future generations. The Haweswater Aqueduct is a 110km pipeline which runs from the Lake District, through Lancashire and into Greater Manchester. Originally constructed in the 1950s, the pipeline needs essential upgrade work and will see the replacement of the existing tunnel sections to ensure it can continue to supply customers for generations to come.
STRABAG and Equitix have participated as joint partners in the tendering process for the selection of a Competitively Appointed Provider (CAP). The project company is responsible for the concession agreement with the client, United Utilities, who is responsible for water and wastewater services in the North West of England.
STRABAG CEO, Klemens Haselsteiner, said: “We are delighted to have been appointed preferred bidder on such a regionally important programme in the North-West and are looking forward to working with United Utilities. This is an exciting programme which will provide a huge amount of benefit to the region. In recent years, STRABAG UK has reached several impressive milestones on major projects and has seen consistent growth. This is an important step in our expansion plans for the UK division of STRABAG and is further recognition of our industry leading expertise.”
Equitix’s CEO, Hugh Crossley, added: “Equitix is delighted to be selected as preferred bidder with our consortium partner STRABAG, to deliver this strategically important project for United Utilities and Ofwat. Our strong track record in delivering greenfield projects, coupled with our approach to partnerships will lead to the successful delivery of this significant project that will benefit communities in the North West for generations.”
The contract includes design and construction, finance and maintenance of six tunnel sections of the pipeline. The construction phase is planned to run over eight years followed by a further 25 years of maintenance. STRABAG UK Limited will be responsible for the full design & construction scope of the project, while the financing will be provided by Equitix and the STRABAG Group. The estimated construction cost will be in the region of £2.5bn to £2.9bn.
The coming together of UK core infra leader Equitix and global construction leader, STRABAG, will see their respective skillsets and expertise creating this winning new partnership. The new contract builds on the ongoing success of STRABAG in the UK, replicating the Group’s extensive international experience in providing end-to-end capability services (finance, design, construction, and fit-out) in the built environment.
Additional Information
In its price review PR19, the British Water Services Regulation Authority Ofwat developed the DPC approach (Direct Procurement for Customers) building on the success of Thames Tideway Tunnel. DPC involves a water or wastewater company competitively tendering for services in relation to the delivery of certain major infrastructure projects, resulting in the selection of a third-party competitively appointed provider or 'CAP' who will design, build, finance, and in some circumstances operate and/or maintain the relevant infrastructure. DPC will result in water companies competitively procuring more aspects of an infrastructure project, including financing for the project.
HARP is a major scheme to maintain drinking water supplies across Cumbria, Lancashire and Greater Manchester for future generations. The Haweswater Aqueduct is a 110km pipeline which runs from the Lake District, through Lancashire and into Greater Manchester. Originally constructed in the 1950s, the pipeline needs essential upgrade work and will see the replacement of the existing tunnel sections to ensure it can continue to supply customers for generations to come.
STRABAG and Equitix have participated as joint partners in the tendering process for the selection of a Competitively Appointed Provider (CAP). The project company is responsible for the concession agreement with the client, United Utilities, who is responsible for water and wastewater services in the North West of England.
STRABAG CEO, Klemens Haselsteiner, said: “We are delighted to have been appointed preferred bidder on such a regionally important programme in the North-West and are looking forward to working with United Utilities. This is an exciting programme which will provide a huge amount of benefit to the region. In recent years, STRABAG UK has reached several impressive milestones on major projects and has seen consistent growth. This is an important step in our expansion plans for the UK division of STRABAG and is further recognition of our industry leading expertise.”
Equitix’s CEO, Hugh Crossley, added: “Equitix is delighted to be selected as preferred bidder with our consortium partner STRABAG, to deliver this strategically important project for United Utilities and Ofwat. Our strong track record in delivering greenfield projects, coupled with our approach to partnerships will lead to the successful delivery of this significant project that will benefit communities in the North West for generations.”
The contract includes design and construction, finance and maintenance of six tunnel sections of the pipeline. The construction phase is planned to run over eight years followed by a further 25 years of maintenance. STRABAG UK Limited will be responsible for the full design & construction scope of the project, while the financing will be provided by Equitix and the STRABAG Group. The estimated construction cost will be in the region of £2.5bn to £2.9bn.
The coming together of UK core infra leader Equitix and global construction leader, STRABAG, will see their respective skillsets and expertise creating this winning new partnership. The new contract builds on the ongoing success of STRABAG in the UK, replicating the Group’s extensive international experience in providing end-to-end capability services (finance, design, construction, and fit-out) in the built environment.
Additional Information
In its price review PR19, the British Water Services Regulation Authority Ofwat developed the DPC approach (Direct Procurement for Customers) building on the success of Thames Tideway Tunnel. DPC involves a water or wastewater company competitively tendering for services in relation to the delivery of certain major infrastructure projects, resulting in the selection of a third-party competitively appointed provider or 'CAP' who will design, build, finance, and in some circumstances operate and/or maintain the relevant infrastructure. DPC will result in water companies competitively procuring more aspects of an infrastructure project, including financing for the project.
