Veolia Water, Costain and Atkins JV selected as capital delivery partners for Thames Water

Thames Water's alliance model brings together a number of joint ventures

Collectively, the joint ventues will be responsible for the delivery of a programme of work with a total value of £3 billion, making this the largest capex management contract in Europe. The contract is potentially worth up to £450m to Veolia Water over the next five year regulatory cycle.

Lawrence Gosden, Thames Water's Asset Director, said: "We have a significant amount of work to do upgrading our deteriorating infrastructure over the next 25 years and beyond, while keeping customers' bills affordable. If we are to achieve this, a different approach is required.

"That is why we have formed an alliance to deliver our AMP6 programme. This represents a complete transformation in the way we carry out investment. Our focus will be on delivering value, as opposed to just cost-efficiency. We will take a long-term view, as well as making sure we meet out shorter-term goals.

"By forming this early, two years before the start of the next five-year regulatory period, we stand the best possible chance of delivering the safest, most sustainable and most innovative solutions - those which don't necessarily involve simply pouring concrete."

The appointment comes as Thames Water unveiled plans to transform the way it delivers capital investment, which includes joint team working with an integrated supply chain, boosting safety and efficiency, and making sure solutions delivered are sustainable and value for money.

Olivier Bret, Chief Executive Officer for Veolia Water, said: "Veolia's expertise and proven technical and operational capabilities enable us to take a key role in the delivery of this essential capital delivery programme, and meet the high standards that Thames Water demands for its customers."

"This is a strong and balanced partnership which brings together our expertise in water, construction and design to deliver the best possible service though efficiency and innovation."

Andrew Wyllie, Chief Executive of Costain, commented: "We are delighted to have been selected by Thames Water to deliver this major AMP6 contract.

"The award is a consequence of our ability to work collaboratively, deliver sustainable innovative solutions to major infrastructure needs, and provide value for money. It also further reinforces Costain's position as one of the leading UK engineering service providers in the water sector."

Neil Thomas, Group MD, Atkins, Water and Environment, said: "We are looking forward to working closely with our partners and drawing on our combined technical expertise and complementary strengths to support Thames Water with its fresh approach to the planning, design and delivery of this substantial capital programme."