Strabag reaches financial close on £3bn drinking water project

Stefan Kratochwill (Image: Strabag)

The construction firm has formed Cascade Infrastructure Limited alongside Equitix and GLIL Infrastructure to deliver the Haweswater Aqueduct Resilience Programme (HARP) for United Utilities.

Originally constructed between 1933 and 1955, the 110km-long pipeline (68.4 miles) needs essential upgrade works that will see the replacement of six existing tunnel sections.

The overall estimated project construction costs will be in the region of £3 billion.

The programme will be the first in the UK water sector approved by water industry watchdog Ofwat to be delivered through a direct procurement for customers (DPC) model. DPC involves water or wastewater companies competitively tendering for services in relation to the delivery of major infrastructure projects, leading to the selection of a third-part provider that will design, build, finance and sometimes operate or maintain the infrastructure.

The project is expected to take nine years to complete, followed by a further 25 years of maintenance.

Map showing the route of the 110km pipeline (Image: United Utilities)

Strabag CEO, Stefan Kratochwill said, “Expanding our presence in the UK and investing in critical water infrastructure is a clear step in delivering on our Strategy 2030. With HARP, we are not only contributing to the long-term resilience of critical infrastructure, but also strengthening our market position in the UK.”

Strabag UK managing director, Simon Wild, added, “The award of the HARP design and construction contract to STRABAG UK Limited recognises the capability and depth of competence we have built up over the past years. We will deliver this critical national infrastructure focussing always on best value, working closely with local communities and creating high quality opportunities for skills development and long-term employment in the North of England.

“We are immensely proud of the way our teams have collaborated to achieve financial close and look forward to continuing this partnership for years to come on such a significant project.”

The Haweswater Aqueduct was originally constructed between the 1930s and 1950s (Image courtesy of Strabag UK)