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(Alliance News) - Costain Group PLC and Galliford Try Holdings PLC on Friday said they have been selected by Southern Water Ltd to take part in the utility's GBP3.1 billion framework for wastewater treatment projects.
Worthing-based Southern Water provides water and wastewater collection and treatment in the southern part of England, including Hampshire, the Isle of Wight, East and West Sussex, and Kent.
UK water companies have been under public pressure in recent months over the excessive release of sewage into waterways. Southern Water made 108 permit breaches in 2023, according to a freedom of information request by political party the Liberal Democrats, the second most after Severn Trent PLC with 132.
Southern Water said the total value of the frameworks, including two earlier awards, is GBP3.7 billion over the initial contract terms of seven and five years. The contracts include options to extend for up to five years.
The utility said Costain and Galliford Try will be part of the 'strategic delivery partner' framework. This will be responsible for major infrastructure projects, such as constructing new pipelines and pumping stations, or non-infrastructure schemes, such as upgrades to water supply works or wastewater treatment works.
"This announcement marks an important milestone in our preparation for the next regulatory investment period 2025-30 and beyond. Southern plans to more than double its investment over the next five years to meet the needs of customers and the environment," said Southern Water Chief Financial Officer Stuart Ledger.
The award is worth at least GBP500 million to Costain over the initial seven years, the London-based infrastructure construction company said.
Galliford Try, which is based in Uxbridge, London, didn't provide a value for its portion, though it said the framework is a "key strategic appointment for our business".
Costain shares were up 2.6% to 91.33 pence early Friday in London. Galliford Try shares were up 1.2% to 304.60p.
By Tom Waite, Alliance News editor
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