Thames Tideway Tunnel

The Thames Tideway Tunnel represents a truly ground-breaking project in terms of the time taken to develop the project, the financial modelling, the environmental benefits, the impact on customer bills and the value for money derived from a highly effective and competitive procurement process.

A ground-breaking delivery model

A new innovative approach was essential to addressing London’s Victorian sewerage system. Traditional methods of infrastructure delivery were unable to meet the complex challenges presented, and the stakeholders worked intensely to create a model which would enable a project “ready to go” on the date of licence award, whilst delivering value for money to customers. Some key features include:

• Partnership and collaboration: The success of the project was dependent upon the careful planning and collaboration of all the project stakeholders who worked in partnership for many years to develop a model that would attract the required financing whilst ensuring that the interests of customers and the public sector were effectively represented and protected. This model culminated in a procurement process run for the entity that would result in the creation of the first new utility company in the UK for 20 years.

• Procurement on a new scale: The model involved TWUL launching the biggest construction works procurements in the sector – building and developing contracts that were later used on the Olympics and Crossrail.

• Procurement at speed: The procurement for the financing was completed in under 14 months. The culmination of which was an extraordinary outcome for TWUL customers.

• A new class of investors: The delivery model developed, enticed a new class of investors into greenfield infrastructure projects such as pension funds.

Effective risk transfer

The thoroughly tested delivery model, which formed the commercial heartbeat of the project, contributed significantly to the exceptionally short procurement timetable and minimal negotiation of the commercial terms. Investors participating in the procurement were encouraged by the open and collaborative manner in which the negotiating team undertook the procurement.

For those risks where it was clear that it would not represent value for money – a highly focused government support package (‘GSP’) was provided. This only covered exceptional project risks (such as insurance events over levels of commercial cover). The existence of the GSP was critical in ensuring the private sector could focus on the risks that it was able to manage.

Social benefit of TTT

The commitment to ensure a cleaner river and a healthier environment lay at the heart of the project. In addition, we were committed to minimising the carbon footprint of the construction works where practical, such as using river transport for material disposal, and providing infrastructure that supports a more resilient biodiversity.

The project also creates three acres of new public space along the route of the River Thames, providing people with the opportunity to connect with the river in an entirely new way.

The Agilia team took a leading role

We occupied various senior positions within the client team for the project. As Commercial Director, Amar Qureshi was responsible for the development of the Delivery Model, negotiations with the investors and the procurement of contracts. Mike Pugsley occupied the role of Head of IP procurement, reported to the Finance Director for TTT. Sebastian Pampe ensured that the procurement was project managed effectively, covering the due diligence, the extensive data room and the mechanics of the procurement itself.