Preferred bidder selected for Project Aquatrine

The Ministry of Defence (MoD) has appointed a preferred bidder for the first package of Project Aquatrine, with a reserved bidder also in place.

Brey Utilities, comprising Yorkshire Water Services, Tyco Tech, and Halliburton Brown & Root, has been selected as preferred bidder for the first package of Project Aquatrine, which covers work in the Midlands, Wales, and south-west England, while C2C, comprising Severn Trent, Costain and Ove Arup & Partners International, has been named as the reserve bidder.

Four consortia were originally invited to negotiate. The other two were Diamond Alliance(Vivendi Water UK/AWG/Mowlem) and Thames Water.

Project Aquatrine is the MoD's water and wastewater PPP project. It allows the MoD to exit the provision of water and wastewater services to enable it to focus on its core business of managing defence needs.

"Project Aquatrine will ensure the transfer of environmental and operational issues to those in the private sector who are best placed to manage it. This 25-year contract will enable the MoD to concentrate its efforts on delivering military capability," said defence minister Dr Lewis Moonie.

The contract for the first package of work is expected to be signed in March 2003, following a three-month negotiation period, with the contract expected to go live in December 2003.

The two remaining packages are Package B, covering Scotland, and Package C, covering the North and eastern England. Three consortia have been invited to negotiate for Package B: Brey Utlities; United Utilities/Morgan Est/Babtie; and Nevis Water (Thames Water/Scottish Water). Five consortia will negotiate for Package C: Brey Utilities; C2C; United Utilities; Diamond Alliance; and Thames Water.