All systems go for £4.2bn London super sewer

Aaron Morby 3 years ago
Share

Contractors have started mobilising after mega contracts for the three main tunnel drives on the Thames Tideway project were signed off today.

Construction can now start next year following the confirmation of both the independent investors to finance and deliver the scheme and contract agreements on the 24km tunnel drive under London.

The deals signed with Bazalgette Tunnel Limited, the consortium of investors that holds the concession for the project, paves the way for project to start.

Thames Water also announced that strong competition for both construction and financing has driven down costs for five million London bill payers.

At the peak of construction Thames Tideway will create more than 9,000 direct and indirect jobs around 24 sites in the capital.

For the East works package the Costain, VINCI Construction Grands Projets and Bachy Soletanche joint venture has signed off the contract at £605m, towards the lower end of the £500m-£800m estimate for this section.

Another three-way consortium consisting of Balfour Beatty, BAM Nuttall and Morgan Sindall has signed off the shorter western tunnel drive at a price of £416m, in the middlle of the £300m-£500m estimate.

A Ferrovial Agroman and Laing O’Rourke joint venture secured the largest central section drive for £746m, against a £600m-£900m estimate.

Thames Tideway

This morning Balfour Beatty said it would start mobilisation work for the 6km West tunnel project next month, with completion scheduled for 2022.

Leo Quinn, Balfour Beatty group chief executive said: “The award of this unique infrastructure project, which is part of the largest ever undertaken by the UK water industry, is another example of the part we are playing in 21st Century engineering.”

Thames tideway

The trio of winning consortia will drive the 7.2m diameter tunnel under much of the route of the Thames from Acton in West London to Abbey Mills in the east.

Innovative engineering in the design phase has already reduced the tunnel from the initial 32km proposed, and reduced the number of construction sites needed from 45 to 24.

The tunnels will be dug with a gently sloping gradient, falling 1m for every 790m it travels at a depth up to 60m below the surface.

Thames Tideway(Click map to enlarge)

Thames Water also announced a much lower than predicted cost of the project to customers today.

The company’s current average household bill for water and wastewater of around £370 per year is now expected to remain at that level, before inflation, until at least 2020.

Martin Baggs, CEO of Thames Water, said: “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.

“It’s a historic achievement and I look forward to supporting Bazalgette Tunnel Limited in 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 five million bill payers.

“Our current annual bills already include £7 for the tunnel and this will eventually rise to a total of £20 to £25, before inflation.

He added: “This is sharply down from the original maximum estimate of £70 to £80 set four years ago.

“The really good news is that cheaper finance and other efficiencies mean that this hugely important piece of national infrastructure can be built while keeping our bills at or around their current level, before inflation, for at least the next five years.”

Latest news

Laing O’Rourke director killed in car crash on way to work

Tributes to Caroline Blackman who died early on Wednesday morning en route to Hinkley
3 days ago

Kier cutting jobs on Highways England contract

More than 100 workers facing redundancy across Midlands Area 9
3 days ago

Buckingham confirmed for £120m Swansea arena

Six months of pre-construction work to now get underway
3 days ago

Two North West smart motorway projects delayed

Costain and Galliford Try jobs put back by more than a year
3 days ago

Lendlease wins £8bn Thamesmead development

Morgan Sindall beaten in race for 11,500 home site
3 days ago

Government pledges £80m for Dawlish sea wall project

South Devon railway sea wall will be rebuilt and increased in height by 2.5m
3 days ago

30 jobs lost as Yorkshire precast firm collapses

Rippon-based Ebor Concretes placed in administration
3 days ago

Go-ahead for 200-home Cardiff build-to-rent scheme

Work to start on central Cardiff scheme this summer
4 days ago

Balfour renews £220m London Tube track upkeep

Four-year term will start in April with option to extend by six years
4 days ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
10 months ago

Bouygues paid £21m not to build Garden Bridge

Transport for London documents detail £53.5m wasted on doomed crossing
5 days ago

Government signs off £250m for major housing projects

Deal to release £157m for housing infrastructure in Cumbria and Devon
4 days ago

Beetham Tower owner faces £4m reclad bill

Owner will have to foot remedial facade works bill in wake of Carillion collapse
4 days ago

WYG profit warning sees share price crash 40%

Consultant back in talks with lenders over breaching banking covenants
5 days ago

United Living hires former Wates business director

Michael Holling takes role as northern and Midlands operations director after 24 years at Wates
4 days ago

Union demands death benefits for all construction workers

Unite says lack of employer-paid cover should be as unacceptable as not wearing a hard hat on site
5 days ago

Scaffold collapse on school misses kids by metres

Court hears how untied scaffold fell into Welsh school
5 days ago

Galliford Try construction hit by more Aberdeen bypass losses

Another £26m hit on bypass plunges construction into red in first half
5 days ago

Council terminates Lakehouse school contract

Willmott Dixon takes over site hit by "performance and project delays"
5 days ago

Government infrastructure pipeline needs reality check

Call for Treasury to drop project 'wishlist' for certain Pledged Projects List
5 days ago

Council seeks partner for Birmingham Ladywood Estate

Major regeneration plans at Ladywood and Perry Bar to boost city's housing stock
5 days ago

Willmott Dixon wins £21m Wakefield swimming pool

Work to start next month on Pontefract Park leisure centre
5 days ago

Weston and Tesco plan to turn store site into 1,400 homes

Application set to go in for major mixed-use development in east London
5 days ago

Network Rail unveils major operational shake-up

Devolved operating model moves from eight to 13 routes
6 days ago

Subcontractors wanted across Nottingham

Big name contractors and clients looking to boost supply chains: Register now for Meet the Buyer event
5 days ago

Bidding starts for £18m Helensburgh leisure centre

Argyll and Bute Council hopes to start work on seafront leisure centre and swimming pool this year
6 days ago

Interserve ‘fit for growth’ director exits

Dougie Sutherland merged UK and International construction businesses
6 days ago

Rail minister says HS2 doubts are “complete nonsense”

Government says its commitment to construction of the full route is "undiminished"
6 days ago

Go-ahead for Manchester Airport beauty group hub

Three contractors chase £31m deal for The Hut Group studio
7 days ago

Drink driver careers through roadworks

Jailed driver was three times over the limit when he crashed into a construction vehicle
6 days ago

Contractor services