Bazalgette consortium preferred bidder for 4.2bn Thames tideway tunnel project

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Bazalgette consortium preferred bidder for 4.2bn Thames tideway tunnel project

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Thames Water, the private utility company responsible for the public water supply and waste water treatment in many parts of Greater London, has selected the Bazalgette consortium as the preferred bidder for the £4.2 billion (US$6.5 billion) Thames tideway tunnel (TTT) project.

The consortium is composed of: International Public Partnerships Limited (INPP), Allianz, Amber Infrastructure Group, Dalmore Capital Limited, DIF and Swiss Life Asset Managers. The team beat the competition from a consortium comprising Universities Superannuation Scheme, Borealis, M&G's Infracapital unit, and Innisfree.

The team 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/Licence award, which is expected in Summer 2015.

The TTT is a new part of the sewer network which will carry sewage and storm water discharges from the broader London sewerage system. The tunnel will be approximately 25km long, 7.2m in diameter and will run up to 65 meters below the River Thames. Starting in West London, the main tunnel will follow the route of the Thames to connect with the existing Lee Tunnel, with sewage being transferred to the Beckton Sewage Treatment Works in East London. 

Construction of the project will be under three main contracts. The Preferred Bidders for construction were announced in February 2015, with:

Construction is expected to commence in 2016 and reach completion by 2023. 

Rupert Dorey, Chairman of International Public Partnership stated:

"We are delighted that the Bazalgette Consortium has been appointed preferred bidder on the Thames Tideway Tunnel.  The award is testament to the Company's ability to source primary assets from the market that ultimately provide great value to our investors."

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