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Wed November 20 2019

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Southern Water renews Costain MWH framework

16 Oct Southern Water has extended the terms of its framework contract with Costain MWH joint venture for another five years.

Costain MWH joins Galliford Try in staying with Southern Water from asset management period six (AMP6) to AMP7, which runs from 2020 to 2025.

The AMP7 contract will begin in April 2020 and will see Costain and MWH Treatment provide Southern Water with clean water supply services and wastewater treatment.

Pending final determination of Southern Water’s business plan, the contract is worth approximately £325m to the joint venture, called CMDP, in an equal share over the five-year period.

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Last week Galliford Try announced that it had been re-signed by Southern Water, in a deal that it expects to be worth £240m in revenue. This week it is Costain’s turn.

Costain chief executive Alex Vaughan said: "Having now worked with Southern Water through the previous four regulatory AMP cycles, this contract extension is further testimony to the value of our long-term, strategic relationship. Together with our joint venture partner MWH Treatment, we will use our full range of integrated services to continue to deliver innovative efficient solutions to Southern Water to ensure we support them in meeting their regulatory obligations and the provision of excellent service to its customers whilst adding value to the communities and environment it operates in."

Neil Colman, Southern Water director of engineering and construction, added: "We are delighted to continue our close relationship with Costain and MWH Treatment to deliver our hugely ambitious plans for the next AMP. We fully expect the delivery of our PR19 programme to be challenging and require large efficiency gains. Only with partners as committed as we are to delivering smart solutions can we be sure of securing a resilient water future for the southeast."

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