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Scottish Water starts search for two partners in £780m deals

Scottish Water is seeking to appoint two alliance partners to a water infrastructure programme worth around £780 million over six years.

The water provider has issued a contract notice to support its future Quality & Standards IV capital investment programme for the regulatory period starting 2015.

The programme will be divided into two lots: waste water infrastructure and water infrastructure. Each lot is estimated to be worth up to £65m annually with an estimated spend of £390m in each lot between 2015 and 2021.

Scottish Water said alliance partners can be a single entity or a delivery consortium made up of an individual or multiple contractors and/or design consultants.

It is envisaged that up top six applicants will be invited to tender for each lot. Successful contractors could be kept in place for the next two regulatory periods under a 12-year contract.

A bidders’ day will be held on 19 February for those who submit expressions of interest, with a venue still to be confirmed.

For its wastewater infrastructure alliance lot, Scottish Water will procure one alliance partner with design-and-build capabilities to support the programme.

The client expects between 40 and 60 per cent of the work under this lot to be carried out directly by the contractor, with the remaining work to be procured through wider supply chain delivery.

The lot is estimated to be worth about £60m annually over both the initial six-year period and the option extension period, giving a total value of £720m over 12 years including the regulatory period from 2021 to 2027.

Works will include construction of new assets, renewals, modification, maintenance and refurbishment of sewerage networks and pumping stations.

Scottish Water said a significant proportion of the work will involve removing properties from the flood register by addressing flooding that results from overloaded sewers, and to address unsatisfactory intermittent discharges from the sewer network.

For its water infrastructure alliance lot, Scottish Water expects between 50 per cent and 70 per cent of work to be carried out directly by the alliance partner.

The lot is estimated to be worth £62.5m annually, with a total spend in each regulatory period of around £375m.

The scope of this work will include investigations and interventions on raw water, trunk and distribution mains including service reservoirs.

Scottish Water will develop and monitor a suite of key performance indicators to assess partners on areas including health and safety, timely completion of projects, community benefit and carbon reduction.

Expressions of interest must be submitted by email to by 25 January at 12pm.

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