Ancala Partners is investing a further £150m (€170m) in UK utility Portsmouth Water to help build a reservoir in western South East England.
Ancala’s portfolio company Portsmouth Water has awarded a £167m contract to Future Water MJJV to build the Havant Thicket Reservoir and a £41 million contract to Ward & Burke Construction for a tunnelled pipeline in the water-stressed region of southern Hampshire.
Ancala said it has helped Portsmouth Water to secure a £280m financing package to support the construction of the Havant Thicket Reservoir.
The Havant Thicket Reservoir project will be the first major new water storage reservoir in the UK since the 1980s. The project, expected to be completed in 2029, will hold approximately 8.7bn litres of water.
Lee Mellor, a partner at Ancala Partners, said: “The Havant Thicket Reservoir is a critical step to enhance water security in the South East of England, and will generate significant environmental benefits for decades to come. We are delighted to support the project through £150m of further investment in Portsmouth Water and are grateful to the company’s management team, as well as the collaboration of Ofwat, customers and Southern Water, for their hard work, partnership, and support in developing this exciting project.
“Ancala focuses on proprietary investments in critical mid-market infrastructure where we can add meaningful operational value. We are pleased to have worked closely with Bob and the team at Portsmouth Water over a number of years to solve complex operational, financial and regulatory challenges to progress this vital project.”
Bob Taylor, CEO at Portsmouth Water, said: “This is a major milestone for the Havant Thicket Reservoir project and for Portsmouth Water. The reservoir will safeguard essential water supplies and protect world-renowned chalk streams – the River Test and the River Itchen. Ancala’s continued financial and operational support has been crucial to enabling this major project.”
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