Projects related to the supply of clean water will be carried out by Caledonia Water Alliance, a partnership of Morrison Utility Services and Aecom under a contract valued at £360m over the six years.
Waste water infrastructure services will be delivered by BBV Alliance, a partnership of Black & Veatch and Byzak (part of Amey). This contract is valued at around £340m for the term.
An element of the alliances’ programme of work will be self-delivered and the remainder delivered through contract partners.
The alliances are now working with Scottish Water to procure Tier One suppliers – contractors who will work with the alliances – to help deliver the programme.
Scottish Water director of asset management Geoff Aitkenhead said: “We had a large number of interested parties keen to work with Scottish Water on our next investment programme. Following a diligent and extensive procurement process the Board of Scottish Water has selected two alliance partners.
“This is the first stage of ensuring we have the right partners, with the right skills, to help us deliver the next stage of our continuing investment which is delivering real benefits to our customers while supporting the economy and jobs in Scotland.
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 estimated to be around £500m over the six years.
Mr Aitkenhead added: “We are building strong relationships with our alliance partners which I believe will last beyond 2021. This is good news for our customers as these infrastructure partners will help us deliver the benefits to Scotland in an economical and efficient way, while supporting jobs, in particular giving great opportunities to young people through apprenticeships and graduate programmes.”
Amey chief executive Mel Ewell said: “We are delighted to build on the services that we deliver for Scottish Water, by combining Black & Veatch’s global water sector experience with our design and delivery expertise. Working collaboratively we can support Scottish Water through their investment programme delivering vital services and tangible benefits to communities across Scotland.”
Black & Veatch director Steve Canney, who is chief operating officer for the JV, added: “The services this joint venture provides will make a real difference; creating environmental and health benefits for communities across Scotland. We have been involved in some of Scottish Water’s largest projects and look forward to take this successful relationship forward.”
Morrison Utility Services chief executive Charles Morrison said: “We are delighted that the Caledonia Water Alliance has been chosen as preferred bidder by Scottish Water to support the delivery of the water infrastructure element of its capital investment programme. This joint venture with Aecom will provide Scottish Water with a fully integrated business model which is ideally structured to support Scottish Water’s relentless focus on driving up standards in safety, customer service, efficiency and innovation.”
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