Infrastructure fund managers GLIL and Equitix are investing in a major project to futureproof the water supply in the North West of England.
Cascade Infrastructure, a consortium including GLIL, Equitix and Austrian construction company Strabag, has been awarded a £3bn (€3.47bn) contract by United Utilities to refurbish the Haweswater aqueduct and a 110km pipeline providing water to millions of homes in Cumbria, Greater Manchester and Lancashire.
The recently launched National Wealth Fund (NWF) will provide a £300m credit enhancement guarantee to Cascade Infrastructure.
It is the first water scheme approved under the new direct procurement for customers (DPC) model of the water regulator Ofwat. The Haweswater Aqueduct Resilience Programme (HARP) involves the replacement of the six tunnels along the aqueduct. Work will start in 2026 and run for nine years.
Lee Belfield, investment director at GLIL Infrastructure, said: “This is a great example of how international collaboration and the deployment of local capital can deliver positive long-term impact for communities. As a partnership of UK pension funds, money from Manchester and Lancashire, as well as from elsewhere across the country, is powering this investment into the North West from GLIL.”
GLIL invests on behalf of local government pension schemes, including Local Pensions Partnership Investments (representing Royal County of Berkshire Pension Fund, Lancashire County Pension Fund and London Pensions Fund Authority), Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund, as well as Nest, the government-established workplace pension provider.
Belfield added: “This investment reflects our continued focus on building and investing in UK infrastructure – delivering economic and social benefits across the country, while also delivering the stable, inflation-linked returns that come with infrastructure investment to our members. We’re also excited to be working with Equitix and Strabag to deliver the UK’s first DPC contract.”
Simon Green, CEO of Cascade Infrastructure and managing director for greenfield investments at Equitix, said: “Reaching financial close on the HARP project, marks the beginning of a transformative journey that will deliver vital infrastructure improvements throughout the North West and importantly, deliver infrastructure fit for the future.
“This achievement is the result of exceptional collaboration, commitment and hard work from all our partners involved, combining deep expertise and a shared vision for long-term success. Beyond infrastructure, the project will create jobs, support skills development, and bring lasting economic and social value to the region.”
Ian Brown, interim CEO of the NWF, said: “This is another example of the significant role the NWF can play in de-risking transactions, to enable the private sector to deploy the capital required to progress with critical infrastructure projects.”
The news come soon after a government-commissioned review of the UK’s privatised water industry, which has set out various recommendations, including the abolition of Ofwat.
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