Thames Tideway selects investment partner

The Thames Tideway Tunnel has announced infrastructure investment consortium Bazalgette as the preferred bidder for the £4.2bn project’s infrastructure licence.

The consortium comprising of INPP, Allianz, Amber Infrastructure Group, Dalmore Capital Limited, DIF and Swiss Life Asset Managers has been appointed preferred bidder for the licence, with details of the investment expected to be revealed in the coming months.

The consortium is expected to invest around £1bn in the project.

The consortium will now work with the stakeholders, including Thames Water, the Department for Environment, Food and Rural Affairs and Ofwat (the UK regulator for water and sewage companies) to reach financial close, which is expected by the end of this summer.

The main construction work packages for the ‘super-sewer’ have already been allocated, and are split into three geographic sections of west, central, and east.

The west section, worth between £300m-£500m, has been won by BMB JV, a consortium between BAM Nuttall, Morgan Sindall and Balfour Beatty.

The central section, worth between £600m-£950m, has been won by FLO JV, a consortium between Ferrovial Agroman and Laing O’Rourke.

The east section, worth between £500m-£800m, has been won by CVB, a consortium between Costain, Vinci Grands Projets and Bachy Soletanche.