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Contracts signed for £4.2bn super sewer

Three consortia of construction firms have signed contracts to work on the £4.2bn Thames Tideway Tunnel after the firm in charge of managing the project received a licence from the regulator.

Bazalgette Tunnel formally appointed the teams that will deliver the three tunnel sections of London’s super sewer.

Costain, Vinci and Bachy Soletanche won the £605M contract for the East works package.

Balfour Beatty, Morgan Sindall and BAM Nuttall were awarded the £416M West works deal.

Ferrovial Agroman and Laing O’Rourke Construction secured the central section.

Amey was awarded a system integration contract, and will be responsible for providing process control, communication equipment and software systems for operation, maintenance and reporting.

The contracts were signed after Ofwat gave Bazalgette – a special purpose vehicle owned by funds managed by Allianz, Amber Infrastructure Group, Dalmore Capital and DIF – a licence to operate as a utilities business separate from Thames Water.

“It’s no exaggeration to say this is a truly momentous day for London and the River Thames. I want to thank everyone who has played a part in getting us this far,” said Thames Water chief executive Martin Baggs.

“It’s a historic achievement and I look forward to supporting Bazalgette Tunnel, ensuring the project is delivered safely, on time and to budget. The strong competition for both construction and financing has driven down costs for our more than 5M bill payers.”

Work is expected to begin next year and complete in 2023.

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