News Release Page Title

12 March 2007

CAIRNS AWARDS £122M CONTRACT FOR WASTEWATER TREATMENT

Regional Development Minister, David Cairns, announced that Glen Water has been awarded a £122 million contract for waste water treatment.

The Omega Public Private Partnerships (PPP) Project will upgrade wastewater treatment facilities responsible for around 20% of Northern Ireland’s wastewater treatment capacity and 100% of sludge disposal. It represents savings in excess of 17% from Water Service’s initial estimates.

The Minister said: “This contract will allow much needed wastewater projects to proceed at an accelerated rate. Water Service discharge standards have improved significantly over the past five years but there is still some way to go before Northern Ireland achieves the 95% compliance reached in England and Wales.

“The people of Northern Ireland expect and deserve to have modern infrastructure to support increased growth and industrial development, while protecting public health, ensuring cleaner beaches and safeguarding our environment.

“The introduction of water and sewerage charges will allow us to finance the continued, sustained investment required to reach the European compliance levels achieved in the rest of the UK.”

Katharine Bryan, Chief Executive of Water Service welcomed the award of this contract commenting: "Water Service is looking forward to working in partnership with Glen Water to deliver these much needed improvements as quickly as possible. The partnership with Glen Water is an important part of the Water Service’s capital investment programme which has been designed to accelerate the Water Service’s programme of European compliance to increase capacity within the timeframe needed, while ensuring value for money.”

The existing Wastewater Treatment facilities included in the Omega PPP Project are located at Ballynacor, Bullay's Hill; Seagoe; Armagh; Richhill and Ballyrickard. Already underway through an advance works contract is the construction of the new North Down / Ards wastewater treatment facility which will be one of the most modern and advanced facilities in the country. Construction of a second incinerator at Duncrue Street in Belfast for the safe treatment and disposal of sewage sludge is scheduled to begin shortly.

Water Service’s PPP Programme is co-sponsored by the Strategic Investment Board (SIB) Limited. Mr David Gavaghan, Chief Executive, said: “The Omega Project demonstrates a new confidence in Northern Ireland’s ability to deliver large and complex infrastructure projects.

“This extensive procurement attracted high quality interest from leading specialists in the national and international utility sector, as well as providing new opportunities for indigenous companies in Northern Ireland.”

NOTES TO EDITORS:

  1. The Wastewater Treatment and Sludge Disposal PPP Project (Omega) will involve the design, construction (or upgrading), operation and maintenance of existing works and associated infrastructure at wastewater treatment and sludge disposal sites across Northern Ireland. The Glen Water consortium comprises Thames Water; Laing O’Rourke; Dawson WAM; BSG Civil Engineering; Williams Industrial Services Ltd and Hyder Consulting (UK) Ltd.

  2. The effective start date for this contract is 6 March 2007.

  3. The saving in excess of 17% from Water Service’s preliminary capital estimates of £154m have been achieved through:
    • Strong competition throughout the bid process

    • High degree of contractor innovation encouraged through the performance output approach of Public Private Partnerships.

  4. Glen Water will be responsible for operating and maintaining the wastewater treatment facilities for a period in the region of 25 years (including construction).

  5. A specialist Water Service team, led by a Director and Project Sponsors was supported by a team of advisers. The Northern Ireland Water Service was advised by a consortium led by PricewaterhouseCoopers LLP and included Mott MacDonald Ltd and Dundas & Wilson CS LLP.

  6. Strategic Investment Board Limited (SIB), an agency of the Office of the First Minister & the Deputy First Minister, was established as a company under the Reinvestment and Reform Initiative in 2003. It has three main roles: to help deliver key investment programmes and projects; to support reform of public services; and to build a 10 year investment strategy for Northern Ireland.

  7. For further media queries contact Anne Armstrong DRD Information Office, 028 9054 0004.

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