Six firms bag £1.3bn Anglian Water framework

Six firms, including Balfour Beatty and Skanska, have won a place on Anglian Water’s massive new capital works framework, which is potentially worth up to £9bn over 15 years.

The six contractors appointed to the new Integrated Main Works Capital Alliance framework are: Skanska, Balfour Beatty, Barhale, Grontmij, and MMB (a joint venture between Mott MacDonald and JN Bentley), and MWH.

The framework will run over the AMP6 regulatory period from 2015 to 2020 and is worth £1.3bn over the first five-year period but has the potential to be extended for two further five year periods to 2030, taking its potential value to between £6bn and £9bn.

The six firms have been appointed as part of a team, called One Alliance.

Anglian Water said it expects to recruit three further alliances this year, with all four tasked with delivering Anglian Water’s capital projects, from large water treatment works to repairing small leaks and collecting new properties to the network.

Skanska said the contract would be worth £40m a year to the firm, while Balfour Beatty said it was worth £115m to the firm over the first five year period.

Bill Hocking, Skanska UK executive vice-president, said: “Over the past 10 years the One Alliance has emerged as an exemplar collaborative partnership and we are delighted to have played our part in making it a success.”

Andrew McNaughton, Balfour Beatty chief executive, said: “Long-term alliances help to maximise efficiency through collaborative working, and we are looking forward to helping Anglian Water outperform its AMP6 business plan.”

John Abraham, MWH treatment managing director, said: “The alliance has been an exciting place for MWH to be in over the past 8 years and I am now looking forward to bringing the wider capability of MWH into the new Alliance for AMP6 and beyond.

“Building on the collaborative culture, we will work together with our partners and the whole supply chain to ensure that we provide affordable and sustainable solutions for Anglian Water’s customers.”

Chris Newsome, asset management director, Anglian Water, said: “These partnerships are formed on the principles of making our business as efficient as it can be, and ensuring our customers are completely satisfied with what we do for them.

“Our progressive approach to these partnerships is also fundamental to our ability to keep bills below inflation for the six years through to 2020.”