Costain Group Regulatory News (COST)

Costain Group PLC

17 July 2023

Costain Announces Key Contract Extension

United Utilities extends contract into next water regulatory cycle

Costain Group PLC ("Costain") announces that it has been appointed by United Utilities to work as its Managed Service Provider (MSP) for a further two years, from May 2024 to May 2026. This contract extension has an option to be extended for a further three years and builds on the original five-year MSP contract awarded in 2019. The award extends into the next regulatory cycle (AMP8 2025-2030).

United Utilities is the UK's largest listed water company and is working to ensure the resilience of its network to the effects of climate change, including improving the quality of its wastewater effluent and providing a reliable drinking water supply to its customers.

Since 2019, Costain has provided management and asset maintenance activities throughout the north-west at 96 water treatment sites, 575 wastewater treatment sites, pumping stations and service reservoirs which serve over seven million people.

The MSP framework consists of two types of work:

· Core contract: This includes maintenance services of very high-volume, short-duration activities to more than 900 sites covering repair, replacement and refurbishment of equipment such as pumps. It also covers core projects which are of a greater scale and complexity, delivered as projects. Since the start of 2022, the MSP has developed solutions to 132 Core Projects including installation of a new mixer system within Wayoh Impounding Reservoir, Lancashire and an upgrade to existing gas holders at Manchester Bio-resource Centre (MBC) at Davyhulme Wastewater Treatment Works in Greater Manchester.

· Non-core contract: This includes the delivery of larger capital projects such as the design and construction of remedial improvements to the Clough Bottom Impounding Reservoir in Lancashire and upgrades to the Audlem Wastewater Treatment Works in Cheshire.

Within the MSP Framework, Costain has delivered a wide range of activities and projects to date and made a significant contribution to United Utilities meeting key regulatory requirements.

Sam White, managing director of Natural Resources, Costain said:

"This is a strategically important contract for Costain. We've already delivered big improvements working together with United Utilities on the MSP Framework, leveraging increased automation of data processing and insights to enhance our service delivery. I'm delighted that we'll be continuing this relationship to help United Utilities ensure a sustainable, resilient and efficient service for its customers."

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Costain helps to improve people's lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. We shape, create and deliver pioneering solutions that transform the performance of the infrastructure ecosystem across the UK's transport, energy, water, and defence markets.

We are organised around our customers anticipating and solving their challenges and helping to improve performance. By bringing together our unique mix of construction, consulting and digital experts we engineer and deliver sustainable, efficient and practical solutions.