Market Engagement - Hampshire Water Transfer and Water Recycling Project (Phase 3)

For the avoidance of doubt, the purpose of the Periodic Indicative Notice is to conduct a market testing exercise only and act as a Request for Information. This does not formally begin the procurement nor constitute any commitment by Southern Water to undertake any procurement exercise nor form a commercial strategy in a particular form. Any follow-up discussions are solely for information and planning purposes. Southern Water is not liable for any costs, fees or expenses incurred by any party in replying to, participating in, or attending any event in response to the Periodic Indicative Notice. All costs associated with responding to this pre-market consultation will be solely at the interested party's expense. Southern Water is reserving its position as to whether or not to undertake a procurement.

Market Engagement - This is Phase 3 of an ongoing Market Engagement exercise. Southern Water is planning to deliver an industry-leading construction project to provide and future-proof long-term water supply resilience to our region. The project will include tunnelling.

Southern Water will utilise a Competitively Appointed Provider to deliver the Design, Build, Finance, Operate and Maintain project. The project is to be procured using Ofwat’s new Direct Procurement for Customers approach.

We have released two previous indicative notices:

1) An initial Periodic Indicative Notice (2022/S 000-003206) was published in February 2022, inviting market views and setting out our proposed procurement and commercial approach.

2) A second PIN (2022/S 000-031175) was published in November 2022, further inviting the markets views.

Southern Water are keen to update the market on progress as the project matures and are looking to test the market's interest in the project.

Engagement and feedback

Southern Water is providing the “Project Information Pack 2024” as part of this market engagement and has developed a list of questions relating to the information provided. Any answers provided to the Request for Information are valuable and will be used, where necessary, to inform and develop Southern Water’s current understanding of the market and how Southern Water can best deliver value for money to our customers. The deadline for responding to the Request for Information is Friday 22nd November 2024.

We are strongly encouraging the market including potential investors and supply chain organisations to attend the attend the one-to-one/bilateral meetings with their potential partnering organisations as this is a follow up to previous engagements, and given our wish to cover commercial, financial and procurement aspects relating to the Design, Build, Finance, Operation and Maintenance of the project.