Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBOM Partially Public Finance
# of Projects: 1
100% of the Results

Background informationProject Created: December 20, 2018

Project Name: Tideway (Thames R London) Super Sewer
Year in Operation: 2024
Sector: Water & Waste
Subsector: Wastewater
Status: Design / Construction
Type: New Facility
Description: 25 km system of large bore wastewater tunnel along the Thames River in London, beginning upriver at Acton (above Richmond Upon Thames) leading to Abbey Mills (below Chambers Wharf) for a further connection alng the Lee Tunnel to a new Beckton Treatment Plant near the East side of Newham (below Greenwich). Tunnel diameter varies between 6.5 and 7.2 meters, and slopes downward at a 1:800 incline reaching 65m below ground at Abbey Mills. The tunnel will divert discharges from 34 combined sewer overflow (CSO) points. This will capture more than 90% of the annual amount of raw sewage that enters the Thames each year.
Delivery Method as described in the country where it's located: Concession
Is the project still active: Yes
Comments: The project was procured by Thames Water, one of the large concessionaires operating water and wastewater in the UK. Thames also procured a private consortium of financial companies and funds to own the project - Bazalgette Tunnel Ltd., and transfer the design build contractors it had procured to the tunnel company.

Project Locations

Address:
City: London
State:
Country: United Kingdom of Great Britain & Northern Ireland

Souces of Project Support (Non-monetary)

Checkbox Checked Land: Much of the project is under public land in the Thames. The project will connect (and capture combined sewer outflows) from a very large network of egg-shaped sewer tunnels built in the 1860's by the Metropolitan Board of Works, led by Joseph Bazalgette. The estimate cost of the project has nearly doubled between 2007 ($2.8 billion) and 2016 ($5.4 billion).
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Government agreed to a supporting financial package that includes equity investment to cover cost overruns, insurance indemnities, and compensation in the event of a project termination. Thames Water's customers will fund repayment of cost of the project through increased rates.
Checkbox Checked Environmental Clearance: From Government.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The European Investment Bank committed an $890-million 35 year loan to the project.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: Bazalgette Tunnel Ltd is the "owner" of the project, a consortium of financial companies and funds. It raised capital for the project through bonds and commercial debt.

Checkbox Checked

From Producers as Equity: Bazalgette Tunnel Ltd is the "owner" of the project, a cosortium of financial companies and funds. It committed substantial equity to the project.

Project Delivery & Finance Method

Project Delivery:
Design Build Operate Maintain (Partially Public Finance). Public Sponsor contracts for initial design, construction, and for long term operations and maintenance with a single entity. At the end of the term, Public Sponsor regains control of the facility.
Is there an independant checking engineer? Yes
Project Finance Method: All or Partially By Public Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals
Design Build Operate and Maintain
X
X
Project Component
Yes
No
Is Negotiation of the Price Permitted After Selection of the Winner?
X
Is Negotiation of the Scope of Services Permitted After Selection of the Winner?
X
Are the fees (tolls) to be charged to users over the term an evaluation factor user in Selection of the Winner?
X

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
0
0
Forms
Description
Don't Know
 

Project Value (If and As Known)

Date of Estimated Project Value: December 3, 2018
Project Value
Hard Cost
Hard & Soft Costs
Pre-Feasibility (Public Sponsor Expense)
(none)
> $50 Million US
Construction
> $5 Billion US
> $5 Billion US
Total
$2-10 Billion US
$2-10 Billion US

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