Table of Contents
- Wessex Water plans to spend £3.7bn on improvements between 2025 and 2030
- Galliford Try hopes to raise at least £400m by working with Wessex
Galliford Try has secured another contract to carry out infrastructure improvements on behalf of a UK water company.
The construction company said it would work on the “design and build” aspects, and as mechanical and electrical contractor, for the Wessex Water capital delivery framework, a planned £3.7 billion programme of improvements in south-west England.
Between 2025 and 2030, Wessex Water aims to spend £445m on reducing stormwater runoff and more than £1.1bn on improving water quality by removing 1,550 tonnes of nutrients from waterways.
Construction woes: Over the course of several years leading up to the pandemic, several companies in the nonresidential construction industry issued profit warnings with alarming reliability.
This is part of the wider AMP8 scheme, an agreement between regulator Ofwat and water companies that sets out how the latter manage their assets, provide services to customers and invest in infrastructure.
Galliford hopes to raise at least £400m by working on Wessex Water’s asset management plan.
Consultancy Aecom and civil engineering firms Kier Group, Morgan Sindall and Mott MacDonald Bentley are among the other names working on the project.
Bill Hocking, Chief Executive of Galliford Try, said: ‘We are delighted to be working with our partners at Wessex Water to help them implement their plans for AMP8.
‘The significant increase in activity anticipated in the water sector is a key part of our sustainable growth strategy and we look forward to delivering for Wessex Water’s customers and stakeholders.’
Galliford’s latest contract win comes about a month after Southern Water appointed the company to work on its planned £3.1bn infrastructure upgrades.
The London-based company said the deal with Southern Water could be worth more than £500m over seven years.
Southern Water, majority-owned by Australian investment bank Macquarie Group, serves 4.7 million customers in Kent, Hampshire, Sussex and the Isle of Wight.
Britain’s water industry has faced considerable criticism from politicians and environmental activists in recent years over the high volume of sewage spills affecting British waterways.
Wastewater discharges into England’s rivers and seas by water companies more than doubled from 1.75 million hours in 2022 to 3.6 million hours last year, according to the Environment Agency.
Water UK, the country’s water sector trade association, called the rise “unacceptable” but attributed it to increased rainfall, a major cause of storm surges.
Galliford Try Actions rose 2.8 percent to 299 pence by early Monday afternoon, taking their gains since the start of the year to around 34 percent.
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