WET News

COMMENT "Direct Procurement could be a breath of fresh air for the sector" James Brockett, Editor, WET News MAY "Companies fully support the need to resolve concerns about financing and governance arrangements" Water UK chief executive Michael Roberts on Ofwat's reform programme "This project is a fantastic example of how much can be achieved by working together to reduce the risk of flooding in an innovative and sustainable way" Northumbrian Water's Lynn Preston after diverting a river in North Tyneside as part of a £6 million scheme to reduce fl ood risk 12 Thames Water has quadrupled its above-ground fatberg • ghting team to 12 to slash the num- ber of sewer blockages caused by res- taurants and takeaways £100M The minimum value of projects acceptable for DPC under current guidelines "Water companies are responsible for at least one serious pollution incident every week. Courts need to make nes for pollution incidents proportionate to the turnover of companies" Environment Agency chair Emma Howard Boyd responds to Ofwat's agenda for water companies £3.4M Scottish Water has announced that alliance partner ESD has started work on a project to upgrade drinking water storage facilities for Nairn and Auldearn O ne of the features of the coming 2020-25 AMP7 delivery period will be Direct Procurement for Customers (DPC), the new approach being ushered in by regulator Ofwat as part of the PR19 price review process. DPC will allow water companies in England and Wales to competitively tender for a third party to design, build, † nance operate and maintain infrastructure that would otherwise be delivered by the incumbent water company. It's an approach that has so far proved e‰ ective in the † nancing and delivery of the £4.2 billion Thames Tideway Tunnel, and while DPC is initially being pushed only for the largest projects worth £100 million or more, the intention is to extend it further in future. Since it is only one of a number of ways in which competition is being opened up within the water sector, it's easy to overlook the signi† cant e‰ ects that DPC might have, and its potential for making capital delivery more e" cient. Project † nancing is clearly one area where the reform might result in a better deal for customers; but in many other respects, the approach may prove a breath of fresh air for the sector. Freed from the constraints of the framework contracts and processes related to the related water company, project teams should be able to make better calls on the companies, expertise and partners they need to deliver their work; and contractors will have more to gain by bringing forward innovative approaches. DPC should provide a vehicle that makes it easier to deliver large projects with multiple bene† ciaries, whilst retaining the con† dence of water customers and investors alike. The reform will have its nay- sayers, both among water companies who would rather retain control of major work and from contractors who have contracts and good existing relationships with the incumbent water companies and may fear losing out on work if made to deal with a new entity. However, in comparison with some other reforms, it would be fair to say that Ofwat is taking a so˜ ly-so˜ ly approach to rolling out DPC: water companies will merely need to show that they have considered the possibility of direct procurement and assessed its potential bene† ts for their larger projects, rather than being obliged to adopt it; furthermore, £100 million is a fairly high bar to meet before even this requirement kicks in. Nevertheless, there will certainly be enough high-value projects in business plans for AMP7 to test out the model and, since the water sector is not the † rst sector to go down this road, there is plenty of opportunity to take on board learning from other infrastructure-led industries. A key measure to watch will be how much † nancial investment direct procurement projects attract, which will reveal whether the £100 million threshold has been judged correctly. It is to be hoped that all the parties involved get behind the new approach and make it a success. IN A NUTSHELL S tantec has moved to boost its UK-based environmental consulting capabilities with the acquisition of ESI Consulting. With more than 50 team mem- bers, ESI has three o" ces in Eng- land and Wales, including Shrewsbury, Reading and Cardi‰ . "ESI brings the experience and highly respected project work that complements the long- standing presence we've held throughout the United King- dom," Cath Schefer, Stantec Europe-Africa & RNet/India man- aging director, said. "Our combined teams will provide creative solutions, lead- ing-edge analysis and proven value for our clients across a wide range of industries." ESI, which has more than 20 years of history in the market- place, is an independent scien- ti† c environmental consulting † rms with capabilities in ground- water, land and sustainable development. Supporting a diverse spec- trum of clients in the private and public sector, the † rm maintains a portfolio of projects in the water resources, transport and infra- structure, minerals and waste, and property industries. Among the † rm's notable pro- jects include the development of a groundwater model to assess ¢ Global design • rm, which recently integrated MWH UK and MWH Treatment, acquires Shrewsbury-based company Stantec announces ESI Consulting acquisition e‰ ects on groundwater of Sirius Minerals' Woodsmith Potash Mine, near Whitby, in the North York Moors National Park, plus support to gain planning appr oval. Additionally, as part of the £1.5 billion Highways Eng- land project to upgrade 21 miles of the A14 between Cambridge and Huntingdon, ESI developed a groundwater ¤ ow model of the shallow groundwater system to assess the e‰ ect on key receptors of dewatering using the proposed borrow pit and recharge lagoon system. The † rm is also leading an alliance of expert teams to man- age water resources, hydrology, and hydrogeology projects for Severn Trent Water's framework for AMP6. "Just like Stantec, we have a commitment to the communities we serve throughout the UK and we look forward to connecting to a larger network of technical sup- port to expand our reach throughout the region and beyond," ESI managing director Jon Cooke said. "We also appreciate that our talented team members will be exposed to a global portfolio of projects and career opportunities as we integrate into the Stantec company community." From its base of more than 22,000 team members world- wide, Stantec currently has more than 2,400 currently based across the UK. 2 WET NEWS MAY 2018 | wwtonline.co.uk £5M Order book for Stortec, a Lancashire- based biogas and liquid engineering company founded in February Procurement could be a breath Stantec's Cath Schefer One of the keys to maximising the benets of anaerobic digestion is the process of in-tank mixing. Rotamix from System Mix is the proven and highly eective mixing system which is helping AD operators to achieve excellent results at numerous municipal and commercial installations across the UK. Take a closer look at the benets of Rotamix from System Mix ... ...secure the ADVANTAGE for your AD Biogas Process. Take a closer look at the benets of Rotamix from System Mix ... AB17-1030 System Mix Ltd. Sawtry Court, Brookside Industrial Estate, Sawtry Huntingdon Tel: + 44 (0) 1487 830123 sales@pumpmix.co.uk www.pumpmix.co.uk

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