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Costain joint venture selected by Southern Water as AMP7 partner



16 October 2019

Costain, the smart infrastructure solutions company, and its existing joint venture partner MWH Treatment, have been selected by Southern Water to extend the AMP6 contract as part of the water company’s AMP7 investment programme.

Under the extended contract the joint venture will bring together its consultancy, design, digital, construction and commissioning expertise to develop and deliver a range of solutions to maintain and improve Southern Water’s water supply and wastewater treatment in meeting their outcome commitments.

This builds on work undertaken in AMP6 and will see Costain and MWH Treatment deliver their element of the forthcoming AMP7 regulatory investment programme as part of Southern Water’s multibillion-pound Business Plan 2020-2025.

The AMP 7 contract will begin in April 2020 and will see Costain collaborating with Southern Water ensuring they optimise innovation and efficiency throughout AMP7 delivery. Pending final determination of Southern Water’s ‘Water for Life’ Business Plan, this initial contract is worth approximately c. £325 million to the joint venture in an equal share over the five-year period.

Against a backdrop of rising regulatory requirements across the UK water sector, companies have pledged to provide value for money for their customers, while adding value to communities and the environment. This will be achieved through long-term stewardship of the environment, assets and relationships with customers.

Costain continues to operate across the water sector, which is evolving at pace to meet the demands of population growth, climate change, environmental protection, and improving customer service. These result in the need for the Group’s clients to evolve their business strategies and investment priorities. Costain’s ‘Leading Edge’ strategy closely aligns its services to meet these changing needs.

Alex Vaughan, chief executive officer of Costain, commented: “Having now worked with Southern Water through the previous four regulatory AMP cycles, this contract extension is further testimony to the value of our long-term, strategic relationship. Together with our joint venture partner MWH Treatment, we will use our full range of integrated services to continue to deliver innovative efficient solutions to Southern Water to ensure we support them in meeting their regulatory obligations and the provision of excellent service to its customers whilst adding value to the communities and environment it operates in.”

Neil Colman, director of engineering and construction, Southern Water commented: "We are delighted to continue our close relationship with Costain and MWH Treatment to deliver our hugely ambitious plans for the next AMP. We fully expect the delivery of our PR19 programme to be challenging and require large efficiency gains. Only with partners as committed as we are to delivering smart solutions can we be sure of securing a resilient water future for the South East."