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Thames Water Alliances Sign Biggest Contracts In Water Industry History

30 January 2015

* eight₂O and infrastructure alliance to deliver billions of pounds of work and services for Thames Water
* Partnerships feature some of Britain’s biggest companies
* Ceremony in London today sets seal on largest contracts ever signed in UK water industry

Two major new alliances set to deliver billions of pounds worth of work and services for Thames Water signed long-term delivery contracts at a ceremony in London today (January 30).

Thames Water chief executive Martin Baggs and the CEOs and senior leaders of the partner companies, including Costain, gathered at the Gherkin, in the heart of the capital’s financial district, to set the seal on the largest contracts ever signed in the UK water industry.

In a move designed to transform the way Thames Water does business, it has established eight₂O and the infrastructure alliance to handle up to £4bn of capital investment programmes and network and developer services over the next five years, with an option to include other major scope in the future.

Immediately before today’s signing ceremony, Thames Water chief executive Martin Baggs hosted a meeting of all the CEOs involved in the two alliances.

He hailed the new partnerships as a fantastic opportunity, stressing all involved should be proud of the work that has been done to bring companies and joint ventures together in what he said heralded a “whole new era” for the water industry.

He said: “The alliances will change the way we work and change the mindset, but it’s fantastic to have a team that’s all working together, focusing on our priorities of health and safety and customer service. Problems will be problems for all of us but we’ll share the benefits as well.”

Using the alliance model, Thames Water aims to achieve greater efficiency in the delivery of its business plan, with a greater emphasis on collaborative teamwork, innovation, health and safety, sustainability and an integrated supply community, giving long-term value to the company and its customers.

eight₂O comprises two design and build joint ventures – Costain and Atkins, and Skanska, MWH Treatment and Balfour Beatty (SMB) – as well as a programme manager in MWH and technology innovator IBM, with Thames Water acting as both client and partner. Together, they will carry out between £2bn and £2.5bn of work over the AMP6 period (2015-2020), with potential to extend contracts beyond this to 2025.

Andrew Wyllie, Costain Group CEO, said: “We are delighted to be part of this alliance. This asset management contract brings together strong partners through a collaborative model which puts the end customer first and incentivises all involved to deliver innovative, sustainable solutions which provide value for money.”

eight₂O chief operating officer, Graham Keegan, said: “We're totally transforming investment in water infrastructure by combining expertise and best practice from multiple sectors and thinking differently at every level. We’re focused on delivering innovative, sustainable solutions which will bring real value to communities both now and in the future. Today marks a fantastic milestone and we look forward to working together to achieve our goals.”


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