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CHEDDAR 2 RESERVOIR
AI Summary
South West Water is preparing to commission a new earth‑embankment reservoir in the Cheddar Valley, referred to as Cheddar 2 Reservoir, to supplement its existing reservoir. The project encompasses the design, construction, financing, operation and maintenance of the reservoir, which is planned to hold 8,200 ML of water, as well as associated works including a raw‑water transfer link to an adjacent water treatment facility. In addition, the scheme will involve the installation of a potable water pipeline approximately 75 km in length from the Bristol service area to customers in Devon, providing a comprehensive water supply and distribution network under a Direct Procurement for Customers model.
The procurement will establish a Competitively Appointed Provider to deliver the entire project in a single integrated contract. The provider will be responsible for delivering the earth-embankment reservoir, the raw‑water transfer system to the new treatment works, and the long‑reach potable water pipeline, while also overseeing the operation and maintenance of the completed infrastructure. South West Water is actively engaging the market through industry briefings and launch events to identify potential investors and contractors who can collaborate on this large‑scale, multi‑party procurement.
The reservoir shall be an earth embankment with a usable capacity of 8,200 ML, and the potable water pipeline shall extend approximately 75 km.
Description
This Planned Procurement Notice is being issued to provide advance information to the market of South West Water's intent to procure a Competitively Appointed Provider (CAP) to design, build, finance, and where appropriate, operate and maintain a new reservoir (Cheddar 2 Reservoir), water treatment and transfer scheme under the Direct Procurement for Customers (DPC) model. Please note that this Notice is not a call for competition.
At this stage, it is intended that the Project scope comprises a new earth embankment reservoir with a useable capacity of 8,200Ml, adjacent to the existing Cheddar Reservoir. The Project also comprises associated ancillary works, including a raw water transfer to a new Water Treatment Works, and approximately 75km of potable water transfer pipeline from South West Water's Bristol area to its customers in Devon. The estimated capital value of the work is approximately £750 million (excluding VAT), and the estimated total expenditure (inclusive of operating and maintenance costs) is c. £1 billion (excluding VAT).
South West Water is planning a programme of market engagement for the Cheddar 2 Reservoir Project, and to this end potential investors and contractors are invited to express their interest in participating in a series of engagement activities, commencing with an initial spring industry briefing and launch event scheduled for Tuesday 9th September 2025, to be held at a central London venue.
The programme of engagement is proposed to help develop a wider understanding of the delivery of the Project from both a construction and investment perspective, and presents an opportunity for South West Water to engage and collaborate with the market in refining its delivery and commercial model, procurement approach and contracting terms.
Additionally, the programme of market engagement seeks to encourage multi-party discussions that will align the Project's development and presentation to market with market trends, taking into account the perspectives of both Investors and Main Works Contractors who it is envisaged would form and comprise the CAP.
To express your interest in attending the initial planned launch event for the Cheddar 2 Reservoir Project, please respond by accessing the link below:
https://www.smartsurvey.co.uk/s/Cheddar2/
Estimated date of publication of contract notice: 2027-07-30T23:59:59+01:00
Contract location: UKK
Deadline for requests to participate: 2027-11-26T23:59:59Z
Tenders may be submitted electronically: allowed
Award decision date (estimated): 2029-05-01T23:59:59+01:00
Lot: 1
Lot value (estimated)
1.000.000.000,00 GBP excluding VAT
1.200.000.000,00 GBP including VAT
Languages in which tenders or requests to participate may be submitted: En