Dual-Contract Approach Announced for £2.2bn Oxfordshire Reservoir Project
Thames Water is inviting contractors to participate in discussions regarding two key contracts for the development of a £2.2bn reservoir planned for Oxfordshire.
The utility company has issued a formal notice initiating market engagement for the South East Strategic Reservoir Option (SESRO) project, a significant infrastructure endeavour that aims to bolster water supply resilience in southern England.
Spanning an area of 7 square kilometres and with a storage capacity of up to 150 million cubic metres, the proposed Abingdon reservoir is designed to provide water for up to 15 million people.
Designated as a Nationally Significant Infrastructure Project, the reservoir is expected to be fully operational by 2040.
According to the Planning Inspectorate, the planning application for the scheme is anticipated between September and November 2026.
Thames Water plans to outline its dual-contract strategy through a series of market engagement events. One contract will appoint an infrastructure provider responsible for the design, construction, and financing of most assets within the SESRO project.
The other will involve a main works contractor tasked with building and commissioning the infrastructure under a target-price contract, working collaboratively with the infrastructure provider.
Although formal procurement is scheduled to begin in October, Thames Water is seeking early engagement and input from potential contractors and investors. A key engagement event is planned in central London on 17 March, with registration open until 24 January.
“This engagement presents an opportunity for Thames Water to collaborate with the market in refining its procurement approach and contracting terms,” said yesterday’s notice.
“Additionally, it aims to encourage cross-party discussions that align the project’s development with market trends, taking into account the perspectives of both main works contractors and investors.”
The Abingdon Reservoir will play a crucial role in ensuring a reliable water supply during droughts and addressing the challenges posed by climate change and population growth.
Thames Water, Southern Water, and Affinity Water will all benefit from its capacity to secure future water needs.
Mohit Farmah, Thames Water’s head of procurement and supply chain, expressed enthusiasm about the upcoming phase of market engagement. “We are excited to kick-start the year by getting the next stage of market engagement for our proposed reservoir underway. Contractors and investors have a crucial role to play in informing our approach and helping drive this vital project forward. We have been encouraged by the level of interest the market has shown to date.” he said.
Farmah also highlighted the importance of the spring market engagement event: “I encourage all interested parties to register their interest to engage with us and shape the future of this vital project, including our spring market engagement event on 17 March.”
Alongside SESRO, three additional reservoir schemes are progressing in the UK. At Havant Thicket, earthworks and ground improvements are underway, with above-ground construction scheduled to begin next year. Meanwhile, the £5bn Fens and Lincoln project includes plans for two reservoirs, with a contract award expected in 2027.
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