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Contracts worth more than £200 million have been awarded by Portsmouth Water for the construction of the Havant Thicket Reservoir and connecting pipelines.
Following budget approval by Ofwat, the company has appointed Future Water, a joint venture between civil engineering contractors Mackley and Jones Bros, with a contract worth £167 million to build the Hampshire reservoir.
Tunnelled pipeline connecting the reservoir to the network will be installed by Ward & Burke Construction, which won a £41 million contract.
Bob Taylor, chief executive at Portsmouth said proposals by both companies had “highly impressed” the company on their expertise as well as environmental direction.
Future Water director John Dielhof said: “It’s a project that we can’t wait to get started on because we know how much of a positive impact it will have on the region.
“The scheme will safeguard dozens of jobs for our skilled workforce, as well as create opportunities for apprentices and trainees to kickstart their civil engineering career with us. In addition, we are excited to see the impact this has on the local economy, through supply chain opportunities and spend in the local area.”
The 8.7 billion litre reservoir will be the first built in 30 years in England. It will bolster water supplies for the south east of England where essential reductions to abstraction licenses to protect chalk streams will leave the area with diminished resources.
Planning permission was approved in 2021 and early works started this year with clay being dug out and an embankment beginning to take shape. The project is anticipated to be completed in 2029 to come online by the end of the decade.
“The innovative regulatory and commercial approach that’s being taken has enabled us to deliver cost-effective local solutions to regional water resources challenges,” Taylor said, and praised the collaborative work between Ofwat and Southern Water together with Portsmouth.
Havant Thicket will be financed through a combination of £150 million of equity funding, provided by investors in Portsmouth’s owner Ancala Partners, as well as loans. This year, £120 million of the equity funding will be used and a further £30 million in early 2024.
The project will ultimately be paid for by Southern Water, which will benefit from the resource via a bulk supply agreement with neighbouring Portsmouth.
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