Appointment adds to Costain’s wins in the new water regulatory cycle

Costain, the infrastructure solutions company, has been appointed by Northumbrian Water (NWG) to help shape and deliver its strategic infrastructure upgrade programme. The framework will see contracts awarded with the potential value of up to £670m to Costain over the 12-year period and builds on significant recent wins in the water sector for the company.

The framework contract will see Costain work with the water company and its partners to shape, create and deliver solutions to meet the strategic needs of NWG’s business plan during Asset Management Period 8 (AMP8). The contract starts immediately and will run for a seven-year initial term with an option for a further five-year extension. 

The framework is the Living Water Enterprise, the innovative vehicle developed to deliver NWG’s complex long cycle programmes in AMP8, comprising 12 partners and the water company. The work will involve:

• The design and construction of new water and wastewater treatment programmes and projects, including improving existing facilities and assets. Costain will deliver social value by enhancing the natural environment, a key outcome for AMP8, while also ensuring that customers continue to have access to high quality drinking water throughout the region.
• Programmes will also cover investigations, solution development and delivery to drive asset improvements. Costain will perform a pivotal role in helping Northumbrian Water meet commitments including the Water Industry National Environment Programme (WINEP) and the Government’s storm overflows discharge reduction plan.

AMP8 will see the biggest investment in the water industry for decades. In 2023, Costain extended into AMP8 its Managed Service Provider contract with United Utilities and its consultancy work with Yorkshire Water. Costain has also won funding from Ofwat to support innovation projects.

Alex Vaughan, CEO, Costain, said:

“Costain is a leading business partner to the water industry, ensuring that water companies achieve value for money as they meet the needs of their customers and the regulator during this crucial period for water investment. We’re looking forward to supporting Northumbrian Water in this new working relationship, upgrading both its wastewater and water treatment infrastructure to improve people’s lives and safeguard the environment. At Costain, we develop solutions by building collaborative and sustainable relationships with our customers, and we’re excited to begin this vital work. 

“This contract win not only reflects our continued growth in the water sector, but it also reinforces our commitment to improving critical infrastructure in the North-East of England. This includes major upgrades to the region’s highways and our carbon capture work in Teesside as part of the East Coast Cluster, generating opportunities for regional suppliers and employment for local people.”

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