Strabag-Equitix JV named as preferred bidder for £2.9bn Haweswater Aqueduct project

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This significant initiative aimed at enhancing drinking water supplies across Cumbria, Lancashire, and Greater Manchester is now expected to cost between £2.5bn to £2.9bn. The formal award of the contract is expected in the first half of 2025.

The Haweswater Aqueduct, which spans approximately 110km from the Lake District through Lancashire to Greater Manchester, requires crucial upgrades to ensure its sustainability. Originally completed in the 1950s, the aqueduct is set for a major overhaul that will involve the replacement of several existing tunnel sections.

In 2022, NCE spoke to United Utilities’ head of strategic project engineering about the technical challenges of the project and what work has been done in advance to facilitate it.

Overview of the Harp project (NB: graphic from 2022)

The Strabag Equitix Consortium was picked over the other shortlisted bidders Harp Community Connectors (Acciona, Dragados and Iridium) and More Water (FCC Construcción, SNC-Lavalin, FCC Aqualia, Webuild and BeMo Tunnelling).

Under the terms of the deal, Strabag and Equitix will form what is known as a Competitively Appointed Provider (CAP), responsible for the project and its concession agreement with United Utilities. This structure allows United Utilities, the water and wastewater services provider for the North West of England, to collaborate with external entities for critical infrastructure enhancement.

The contract encompasses design, construction, financing and maintenance of six key tunnel sections of the aqueduct, with the construction phase projected to extend over eight years, followed by a maintenance period lasting 25 years. Strabag UK will undertake the complete design and construction duties while Equitix and the Strabag Group will manage the financial aspects of the project.

This partnership aims to leverage the combined expertise of Equitix, prominent in UK infrastructure, and Strabag, a global construction leader, to replicate their past successes on a broader scale.

The project will utilise the Direct Procurement for Customers (DPC) model, introduced by regulator Ofwat to streamline the procurement process for major infrastructure developments. This approach is designed to foster competition among service providers, encouraging bids for the delivery of essential projects, something Ofwat has made mandatory for significant water infrastructure initiatives in its PR24 guidelines.

The Harp initiative represents a vital step in ensuring that future generations have access to a reliable drinking water supply, alongside the ongoing need to upgrade and maintain ageing infrastructure across the region.

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 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.”

United Utilities transformation and strategic programmes director Neil Gillespie said: “This is a significant milestone in our journey to replace the Haweswater Aqueduct tunnels so that we can continue to provide customers in the North West with a reliable supply of quality drinking water into the future. This is the culmination of a lot of hard work from a dedicated team, and we are really pleased to have now established our preferred bidder.”

Last summer United Utilities shortlisted FR JV and partners (Fluor and Ramboll), Jacobs and Turner & Townsend Infrastructure for the role of technical advisor on the Harp project.

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