CHEDDAR 2 RESERVOIR

Descriptions

As part of wider plans from the West Country Water and Environment Group (WCWE), two projects are in early planning and development, namely Cheddar 2 Reservoir, and the Poole Water Recycling and Transfer Project. This Planned Procurement Notice refers only to the Cheddar 2 Reservoir, led by South West Water, however a separate Planned Procurement Notice is also concurrently being issued by Wessex Water for the Poole Water Recycling and Transfer Project.

This Planned Procurement Notice is being issued to provide advance information to the market of South West Water's intent to procure a Competitively Appointed Provider (CAP) to design, build, finance, and where appropriate, operate and maintain a new reservoir (Cheddar 2 Reservoir), water treatment and transfer scheme under the Direct Procurement for Customers (DPC) model. Please note that this Notice is not a call for competition.

At this stage, it is intended that the Project scope comprises a new earth embankment reservoir with a useable capacity of 8,200Ml, adjacent to the existing Cheddar Reservoir. The Project also comprises associated ancillary works, including a raw water transfer to a new Water Treatment Works, and approximately 75km of potable water transfer pipeline from South West Water's Bristol area to its customers in Devon. The estimated capital value of the work is approximately £750 million (excluding VAT), and the estimated total expenditure (inclusive of operating and maintenance costs) is c. £1 billion (excluding VAT).

South West Water is planning a programme of market engagement for the Cheddar 2 Reservoir Project, and to this end potential investors and contractors are invited to express their interest in participating in a series of engagement activities, commencing with an initial spring industry briefing and launch event scheduled for Tuesday 9th September 2025, to be held at a central London venue.

The programme of engagement is proposed to help develop a wider understanding of the delivery of the Project from both a construction and investment perspective, and presents an opportunity for South West Water to engage and collaborate with the market in refining its delivery and commercial model, procurement approach and contracting terms.

Additionally, the programme of market engagement seeks to encourage multi-party discussions that will align the Project's development and presentation to market with market trends, taking into account the perspectives of both Investors and Main Works Contractors who it is envisaged would form and comprise the CAP.

To express your interest in attending the initial planned launch event for the Cheddar 2 Reservoir Project, please respond by accessing the link below:

https://www.smartsurvey.co.uk/s/Cheddar2/