The North West’s 110km Haweswater aqueduct upgrade is the the UK’s first major water scheme procured under Ofwat’s Direct Procurement for Customers model.

Strabag and partners Equitix and GLIL Infrastructure have formed a new firm Cascade Infrastructure Limited to deliver the nine-year upgrade to the near 70-year-old aqueduct which carries carries 570m litres of water a day by gravity from the Lake District to 2.5m people across Cumbria, Lancashire and Greater Manchester.

Under the deal Cascade will finance, design, construct and maintain the asset for 25 years.

Strabag UK will lead the design and construction, with works expected to start in 2026.

Project governance has also firmed up around the DPC model, with Turner & Townsend named independent technical adviser to support delivery assurance through the construction and operations phases.

Six critical tunnel sections will be replaced using advanced tunnelling techniques.

Supply chain opportunities will be prioritised for local firms, with significant demand expected for civil, mechanical and electrical engineering specialists.

At peak, the scheme will support around 1,200 jobs, including a major apprenticeship programme, while securing long-term water resilience for one of the fastest-growing regions in the country.

United Utilities chief executive Louise Beardmore said the deal marked a “significant step to ensure resilient water supply for decades to come while creating hundreds of quality jobs”.

Strabag chief executive Stefan Kratochwill added that the deal underlined the group’s Strategy 2030, strengthening its UK presence and expanding its portfolio of PPP, DPC and concession models across Europe, now exceeding €600m equity invested.

The project has also secured £300m credit-enhancement backing from the UK’s new National Wealth Fund, ensuring value for money for customers and confidence in the financing structure.