The deal marks the first stage in its bidding programme, that will also see contractors signed up to support the chosen alliance partners and local firms enlisted for a regional maintenance programme.

Caledonia Water Alliance – a Morrison Utility Services and Aecom – will be the water infrastructure alliance partner for £360m of spend over the six years.

BBV Alliance – Black and Veatch and Byzak (part of Amey) – will cover a £340m spend on waste water infrastructure.

Part of the work programme will be delivered by alliance partners with the remainder delivered by contractors.

The alliances will now work with Scottish Water  to procure tier one contractors to support the work pipeline.

Geoff Aitkenhead, Scottish Water’s Director of Asset Management, said:“Caledonia Water Alliance and BBV Alliance have committed to employing apprentices and graduates through the programme.

“Caledonia Alliance has committed to 20 modern apprentices and seven graduates, and BBV Alliance has committed to 30 modern apprentices and 18 graduates.”

Scottish Water’s Business Plan for 2015-21 is still being finalised with regulators, but seeks to invest £500m a year.

In addition to the tier one procurement process, Scottish Water is also holding market days across Scotland to identify delivery partners to support the water and waste water alliances.

These rural framework market days will help identify contract partners who can be part of a capital maintenance programme expected to reach £500m over the six years.

Market days are confirmed for Sumburgh, Kirkwall and Inverness to take place next week.

Plans are also in place for market days in Stornoway, Pitlochry, Dumfries & Galloway and the Scottish Borders for late February and early March.