24 Nov 2004

Interserve has been named preferred supplier in two major water contracts with a combined value of approximately £150 million. One is a framework contract with Severn Trent Water worth an estimated £100 million; the other is a project to deliver the Thames Gateway Water Treatment Plant for Thames Water where Interserve will undertake work valued in the region of £50 million as part of a consortium.

The Severn Trent framework contract will be for a five-year period commencing April 2005. As a Non Infrastructure Contractor Interserve will work with other supply chain partners in the delivery of Severn Trent's five year, £1.5 billion "Asset Management Plan no. 4" (AMP4) capital investment programme, delivering a variety of schemes through an integrated design and construct process to enhance and maintain Severn Trent's water and wastewater treatment assets.

In the Thames Gateway project,  Interserve will work as part of an integrated team with consortium partners Thames Water, the Spanish company Pridesa and Atkins Water to deliver London's first ever plant to abstract salty water from the tidal Thames and, using the latest desalination technology, deliver fresh water ready for distribution to consumers across north-east London.  The plant will have capacity to supply up to 150 million litres of water a day - enough for 400,000 households.  Subject to planning permission from the London Borough of Newham,  work is expected to start by the end of 2004 with the £200m project due to come on stream by 2007. A planning application was submitted to the borough in June and process trials are already being undertaken in a pilot plant on site with design development proceeding.

"These contracts demonstrate the strength of Interserve's capabilities in the water sector," said Interserve Plc director John Vyse. "We have had long and successful associations with both Severn Trent and Thames Water and are very aware of the strategic importance of these developments in providing their customers with long-term, high-quality water supplies and wastewater treatment facilities. We are looking forward to working in collaboration with all the various partners in the delivery of these challenging programmes."