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United Utilities inks deal for £3 billion water tunnel repair scheme

ALN

United Utilities Group PLC on Thursday reported signing on to refurbish a ‘crucial’ aqueduct serving the north of England, with an estimated construction cost of £3 billion.

The Warrington, England-based water company described this as the first project in the sector delivered through a ‘direct procurement for customers’ model, which covers design, construction, maintenance and financing.

UK regulator Ofwat said the project, known as the Haweswater Aqueduct Resilience Programme, is ’‘the first of its kind’ to be green-lit by the water authority.

The Cascade Infrastructure consortium will deliver HARP, aided by what United Utilities called ‘a strong track record’ of tunnelling in Europe.

Haweswater carries an estimated 570 million litres of water per day to Greater Manchester and Lancashire from Cumbria. The tunnel supplies just under 5 per cent of England’s population, and its original 110-kilometre pipeline is 70 years old.

HARP aims to replace six tunnel sections, with construction expected to begin in 2026. At its peak, around 1,200 people will work on the project, which includes apprenticeships, according to United Utilities.

The water company’s shares rose 0.3% to 1,163.50 pence on Thursday morning in London.

‘Today marks a significant step to ensure we have the right infrastructure to provide a resilient water supply to communities right across the region for decades to come and, at the same time, creating hundreds of great quality jobs ’ commented Chief Executive Louis Beardmore.

Manchester Mayor Andy Burnham added: ‘The Haweswater aqueduct has served our region well for decades. This landmark investment ensures it will continue to do so for generations to come. It’s not just about securing the water supplies we need for our city region to grow - it’s also about creating jobs, building skills, and delivering long-term value for our communities.’

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