Welsh Water seeks private partner for £667m Cwm Taf Scheme

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Dŵr Cymru Welsh Water has launched early market engagement for a £667.2m water infrastructure programme across two sites in South Wales.

The Cwm Taf Scheme, part of the water company’s long-term supply strategy, will involve building a new treatment works on a brownfield site at Dan-y-Castell Farm in Merthyr Tydfil, and upgrading the existing facility at Llwyn-onn in the Bannau Brycheiniog National Park.

Water regulator Ofwat has designated the project for direct procurement.

The company is seeking a private-sector partner to deliver the works through a design-build-finance contract. The successful bidder will also be responsible for funding the works and maintaining them over a 25-year term.

The Dan-y-Castell job is valued at £362m, while the Llwyn-onn upgrade is expected to cost £194m, with both figures excluding VAT.

Planning for both sites is underway following statutory consultation.

Works include construction of pumping stations, transfer pipelines, treated water storage and environmental mitigation measures.

Welsh Water is inviting responses to a market questionnaire by 22 September. It plans to follow up with further engagement, including a briefing event and potential one-to-one meetings.

Contract award is scheduled for August 2028, with regulatory completion by March 2032, followed by a 12-month testing phase.

The project forms part of Welsh Water’s long-term commitment to secure drinking water supplies for more than three million customers and aligns with Welsh Government objectives under the Well-being of Future Generations (Wales) Act 2015.

Source: Gov.uk Find a Tender

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Ben Vogel

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