Member Article

Preferred bidder named for £4.2bn Thames Tideway project

Bazalgette Consortium comprising INPP, Allianz, Amber Infrastructure Group, Dalmore Capital Limited, DIF and Swiss Life Asset Managers has been appointed preferred bidder for the Thames Tideway Tunnel (“TTT”) licence.

The company will invest up to £210m in the £4.2bn plan to build a 25km sewer under the streets of London, with the residual risk capital being funded by the remaining consortium partners.

The Consortium will now work with the stakeholders, including Thames Water, the Department for Environment, Food and Rural Affairs and Ofwat to reach Financial Close/Licence award, which is expected in Summer 2015 and further details of INPP’s investment will be provided at that time.

The TTT is a new part of the sewer network which will carry sewage and storm water discharges from the broader London sewerage system.

Earlier this week, the scheme was faced with controversy as there were two consortiums competing to finance and build the project; the government advises three bidders must battle it out for contracts of this size.

Construction of the estimated £4.2bn project (2011 prices) will be under three main contracts:

The construction Preferred Bidders were announced in February 2015, with BMB JV (Joint Venture of BAM Nuttall Ltd, Morgan Sindall Plc and Balfour Beatty Group Limited) selected for the West contract, FLO JV (Joint Venture of Ferrovial Agroman UK Ltd, Laing O’Rourke Construction) for the Central contract and CVB JV (Joint Venture of Costain Vinci Construction Grands Projects Bachy Soletanche) for the East contract.

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

Rupert Dorey, Chairman of International Public Partnership said: “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.”

This was posted in Bdaily's Members' News section by Ellen Forster .