Thames Water launches £4bn capital investment programmes

Thames Water has set up a collaborative initiative eight2O and infrastructure alliance in the UK to carry out £4bn of capital investment programmes and network and developer services over the next five years.

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."

The eight2O initiative includes two design and build joint ventures, along with a programme manager in MWH and technology innovator IBM, for which Thames Water is both the client and partner.

The joint ventures have been formed with Costain and Atkins, and Skanska, MWH Treatment and Balfour Beatty (SMB).

Both the collaborators will work over the AMP6 period (2015-2020) with investment worth £2bn to £2.5bn. The firms will have the options to extend their contracts till 2025.

The infrastructure alliance is expected to provide nearly £1bn worth of water network and developer services over the AMP6 period. The deal also includes an option to put in a further £0.5bn for network and metering services in the future.

Two more joint ventures are part of this infrastructure alliance – Agility, made up of J Murphy & Sons and Morrison Utility Services, and KCD, involving Kier Services Ltd and Clancy Docwra.

Thames Water wholesale water MD Bob Collington said: "We strongly believe these two alliances will create aligned goals and objectives throughout the supply chain, putting us in the best possible position to deliver customer and stakeholder promises."

Thames Water wastewater MD Lawrence Gosden said: "The water industry since privatisation has come a long way but this is a dramatic change in the level of customer focus. These alliances are founded on what customers have been telling us but the only way to deliver customer satisfaction and deliver affordable bills is to innovate and create an environment where innovation flourishes."

eight2O chief operating officer Graham Keegan said: "We’re totally transforming investment in water infrastructure by combining expertise and best practice from multiple sectors and thinking differently at every level.

"We’re focused on delivering innovative, sustainable solutions which will bring real value to communities both now and in the future."

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Image: Thames Water and partners signed partnership contracts in Gherkin, London, the UK. Photo: courtesy of Thames Water Utilities Limited.