The £4bn Thames Tideway project to build a super sewer under London has received a major boost with the selection of an investment consortium to finance and manage the mammoth scheme.
Utility giant Thames Water today named special purpose company Bazalgette Tunnel as preferred bidder for the infrastructure provider role on the Thames Tideway Tunnel.
Bazalgette Tunnel is owned by funds managed by Allianz, Amber Infrastructure Group, Dalmore Capital and DIF. Its formal appointment as infrastructure provider is subject to licensing by regulator Ofwat.
Selection of an infrastructure provider – originally scheduled for May this year – marks a major step forward for the controversial project. Once formally appointed, Bazalgette Tunnel is likely to sign the main construction contracts for the super sewer.
Eight major contractors forming three consortiums were announced as preferred bidders for the main contracts earlier this year.
The tunnel will stretch 25km from Acton in the west to Abbey Mills near Stratford in the east. There it will join up with Thames Water’s Lee Tunnel, which is currently under construction. The system is aimed at reducing sewage spills into the Thames.
Work could start on site next year, with completion by 2023.
The infrastructure provider will be chaired by Sir Neville Simms, with former Crossrail programme director Andy Mitchell as chief executive.