Anglian Water embarks on journey to find provider for England’s first £100 million Water Treatment Works

21 June 2021


Utilising Ofwat’s Direct Procurement for Customers (DPC) process the project will secure water supplies across the East of England


Anglian Water is taking the initial steps to find a partner to deliver a new water treatment works to the value of £100 million which will secure future water supplies across the East of England.


As one of the first major infrastructure projects in England to be tendered using Ofwat’s Direct Procurement for Customers (DPC) approach, the water company is looking for a  Competitively Appointed Provider (CAP) to design, build, finance, operate and maintain the new works in Elsham, north Lincolnshire. The contract for the scheme would run for at least 25 years.


The DPC process allows water companies to open up all elements of a major infrastructure project with a value of £100 million or more to the competitive market, in order to drive the best value for money for their customers.


Once built, the new Water Treatment Works in Elsham, Lincolnshire, will need to be capable of supplying up to 31 million litres of drinking water every single day. Ultimately, these works will be critical in supplying water to Anglian’s new network of strategic water mains which will take treated drinking water from North Lincolnshire to the south and east of the region, where it is less readily available.  Construction is likely to begin in 2023, with the works fully operational by the end of 2025.


This strategic project is part of Anglian’s Water Resources Management Plan, which looks 25 years ahead to make the East resilient to drought. Without taking this action, the East of England would face a water deficit of 30 million litres a day by 2025, the equivalent of 4,380 Olympic swimming pools of water, every year.


CEO for Anglian Water, Peter Simpson said:


“The construction and operation of a new water treatment facility in Elsham is crucial in ensuring we can keep taps running for our customers, and as importantly, without having a detrimental impact on the environment.


“We’re proud to be one of the first companies to embark on Ofwat’s DPC process to ensure we’re getting the best value for money for our customers while maintaining or industry leading standards of providing them with the best quality drinking water.”


Anglian Water is now looking for interested parties to get in touch, pre-market engagement, to gauge capability, interest and to support the development stage of the project.


Further information and the full Prior Information Notice can be found here and additional enquiries can be directed to The formal contract notice for tenders is expected to be issued by April 2022.