Firm picked to build new tunnel which will pass through Lancaster

This is part of the Haweswater Aqueduct Resilience Programme (HARP), stretching from the Lake District through Lancashire to Greater Manchester.

Following a competitive tender process, United Utilities has announced the consortium identified as its preferred bidder is STRABAG Equitix Consortium.

At an estimated construction cost of around £2.5billion to £2.9billion, HARP is expected to be one of the largest water infrastructure projects undertaken in the north west.

The original Haweswater Aqueduct was completed in the 1950s, but six tunnel sections along the 110km route will be replaced under the new work, United Utilities said.

The route includes sections through parts of the districts of Lancaster, Ribble Valley, Hyndburn, Rossendale and Bury, where local councils have dealt with United Utilities planning applications for their specific areas.

In the Ribble Valley, it includes work in the protected Forest of Bowland area of outstanding natural beauty.

The HARP construction project is being delivered through a model called ‘direct procurement for customers’ which, according to the water industry, aims to provide the best value for customers. It is the first time such a model has been used in the UK water sector.

The preferred bidder procurement process is now in its final stage, with the contract award expected during the first half of 2025, United Utilities said, subject to consent by the water regulator body Ofwat.

Neil Gillespie, transformation and strategic programmes director at United Utilities, said: “This is a significant milestone in our journey to replace the Haweswater Aqueduct tunnels so that we can continue to provide customers in the north west with a reliable supply of quality drinking water into the future. This is the culmination of a lot of hard work from a dedicated team, and we are really pleased to have now established our preferred bidder.”

The new direct procurement for customers arrangements are intended for the provision of major water and waste water infrastructure projects through third party providers.

In a regulatory price review this year, Ofwat identified 30 major projects of which 24 are expected to be delivered using this model.

In the north west, HARP will be delivered using a target cost contract, meaning the competitively appointed provider will be incentivised to outperform the target cost.

The target construction cost is subject to adjustment for events which are usually outside the control of and or not the fault of the contractor, including adjustment for inflation, according to United Utilities.

Previous trade media reports in 2023 named various overseas-based firms as potential shortlisted contractors for HARP work.

They included STRABAG Equitix along with other firms linked to Spain, Canada, Italy and Germany.