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Thames Water seeks partner for £2bn Thames Tunnel

Thames Water has begun the search for a delivery partner for the £2 billion Thames Tunnel project – the second part of the London Tideway Tunnels scheme.

The project will consist of a 30km-long 7 m diameter interceptor sewer along with 35 combined sewer outfall shafts.

Thames Water is currently planning the implementation of the scheme and design work has begun and is now looking for an Infrastructure Services Provider – similar to PFI or PPP partner – to join the project.

This model will be developed in two phases:

  • Phase 1 – to understand the legislation, assess market interest/capacity and to develop a detailed approach for delivering the project through an ISP, including structuring the necessary financial and contractual arrangements.
  • Phase 2 – development of the ISP procurement documentation, issue of invitation to tender (ITT), receipt of tenders, tender assessment, selection of preferred bidder, negotiation and contracting with the preferred ISP bidder.

Thames Water will set up a qualification system that will form the basis for the award of contracts or framework agreements under two lots, which will run for up to five years.

Lot one is for the provision of legal and regulatory advice including the development of an ISP.

Lot two is for the provision of general financial and commercial advice, in particular the allocation of risk.

Bids for these initial contracts will be invited in this month or next. Firms who want to be considered for these contracts should respond to Thames Water by 15 September.