Anglian Water Unveils £10bn AMP8 Plan for Future Water Infrastructure
Anglian Water’s £10bn investment plan for the eighth Asset Management Period, known as AMP8, marks a transformative moment for the UK’s water infrastructure. Running from 2025 to 2030, AMP8 is designed to address critical challenges in water management, including population growth, climate change, and aging infrastructure.
The AMP framework, introduced by the UK’s water regulator Ofwat, structures investment in cycles that allow companies like Anglian Water to adapt to evolving demands. AMP8 builds on this tradition, but with an unprecedented scale of ambition. It emphasizes resilience and sustainability while ensuring value for money for customers. The program also includes the implementation of Direct Procurement for Customers and Specified Infrastructure Projects (SIPR), ensuring a forward-thinking approach to project delivery.
At the heart of Anglian Water’s strategy is its commitment to innovation. Leveraging its 20-year history of alliancing models, the company is evolving its collaborative methods to tackle large-scale initiatives. Andy Alder, Anglian Water’s managing director for major infrastructure delivery, emphasized the importance of working collaboratively across the value chain, a practice that has driven innovation and efficiency in past projects.
The £1bn partnership driving Anglian Water’s investment
Central to AMP8’s success is the role of a Programme Delivery Partner (PDP), which Anglian Water is currently seeking through a £1bn procurement initiative. This strategic partner will be responsible for executing the comprehensive investment strategy, integrating seamlessly with Anglian Water’s internal teams to deliver projects on time and within budget.
The PDP will oversee high-stakes projects, including the construction of two reservoirs in the Fens and Lincolnshire regions. These reservoirs are part of the Strategic Resource Options program, designed to bolster water security for future generations. Beyond delivering infrastructure, the PDP will be expected to manage portfolios within a regulated framework and implement innovative models like SIPR to optimize outcomes.
The partnership extends across a 15-year timeline, with opportunities to reassess and refine the collaboration before AMP9 begins in 2030 and AMP10 in 2035. Anglian Water’s strategic framework encourages a blend of industry expertise and innovation, ensuring the PDP can contribute not only to immediate project delivery but also to the company’s long-term growth and environmental goals.
Ambitious projects to define AMP8 and beyond
The cornerstone of Anglian Water’s £10bn AMP8 strategy lies in its ambitious infrastructure projects, including the construction of two reservoirs in the Fens and Lincolnshire regions. These reservoirs are critical components of the Strategic Resource Options program, aimed at addressing growing water demand while safeguarding future resources.
These flagship projects highlight Anglian Water’s commitment to long-term water resilience. By deploying innovative delivery models such as Direct Procurement for Customers, the company ensures efficiency and customer-focused outcomes. The SIPR approach further supports the delivery of complex undertakings, creating a robust framework for meeting Ofwat’s regulatory expectations.
AMP8 also includes broader investment in upgrading water distribution networks, improving treatment plants, and integrating cutting-edge technology. The focus extends beyond immediate infrastructure needs, emphasizing sustainability, environmental protection, and the efficient use of resources.
How collaboration will shape the future of water infrastructure
Collaboration is at the heart of Anglian Water’s approach to AMP8, with the Programme Delivery Partner playing a pivotal role. This partnership model fosters close cooperation between Anglian Water and its strategic partner, ensuring that expertise and resources are aligned to deliver optimal outcomes.
The PDP will work alongside Anglian Water to expand its project management capabilities, enabling the company to tackle increasingly complex projects. Anglian Water’s history of alliancing serves as a strong foundation for this collaboration. Over the past two decades, the company has leveraged its alliancing model to drive consistent and efficient project delivery.
Andy Alder highlighted the benefits of this approach, noting that working collaboratively across the value chain enhances value for money and supports environmental stewardship. This focus on collaboration extends beyond internal partnerships. Anglian Water is also engaging with other water companies and stakeholders to ensure the success of multi-regional projects like the new reservoirs.
Anglian Water’s search for a PDP is part of a meticulously planned procurement process that aims to attract industry-leading expertise. Interested firms are invited to submit a Request for Interest to join the competitive selection.
The journey to awarding the £1bn contract is set to unfold in several phases. Candidates who pass the initial selection will move on to a full tender phase early in 2025, with the final contract expected to be awarded by summer 2025. The chosen PDP will also have the opportunity to influence the commercial and procurement strategies for major projects under the framework.
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