Planning

CHEDDAR 2 RESERVOIR

SOUTH WEST WATER LIMITED

This public procurement record has 2 releases in its history.

Planning

10 Sep 2025 at 16:21

Planning

07 Jul 2025 at 14:24

Summary of the contracting process

South West Water Limited is leading a significant public procurement process in the utilities sector for the development of the Cheddar 2 Reservoir, located in the South West of England. This project, in the planning stage as of September 2025, involves designing, building, financing, and potentially operating a new reservoir and its ancillary systems under a Direct Procurement for Customers (DPC) model. This process includes crucial industry engagements scheduled for completion by 1st July 2027, with further procurement developments anticipated post-engagement. The capital value of the construction work is projected to be approximately £750 million, with the total estimated expenditure around £1 billion excluding VAT.

This procurement process presents ample growth opportunities for businesses in construction, engineering, finance, and water consultancy sectors. Notably, firms equipped to handle large-scale infrastructure projects, including those specialising in earthmoving, site preparation, and water distribution, would find this tender particularly relevant. The competitive flexible procedure underlines the importance of strategic collaboration, inviting bids from entities capable of forming consortia to meet the project's complex design, build, and financial requirements. With market engagement activities providing crucial insights into delivery and commercial dynamics, participating in this procurement could enable businesses to align their offerings with contemporary market trends and establish a foothold in the utilities sector.

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Notice Title

CHEDDAR 2 RESERVOIR

Notice Description

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 Preliminary Market Engagement Notice refers only to the Cheddar 2 Reservoir, led by South West Water, however a separate Preliminary Market Engagement Notice is also concurrently being issued by Wessex Water for the Poole Water Recycling and Transfer Project. A Planned Procurement Notice reference 2025/S000-037919 has previously been published in relation to this Project in July 2025. It is 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. 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 PS750 million (excluding VAT), and the estimated total expenditure (inclusive of operating and maintenance costs) is c. PS1 billion (excluding VAT). Further details regarding the Project are available within the Market Engagement Pack, and details of how to access this are provided below. The Cheddar 2 Reservoir Project is proposed to be delivered via a Direct Procurement for Customers (DPC) model. Under the DPC model, it is intended that a Competitively Appointed Provider (CAP) will be responsible for taking forward the design, build, financing, commissioning, operation and maintenance of the majority of assets within the Cheddar 2 Reservoir Project. Further to the recent launch event held on Tuesday 9th September 2025, South West Water invites interested parties via this Notice to participate in an initial round of Market Engagement, as part of a planned ongoing programme of market engagement for the Cheddar 2 Reservoir Project. 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. We envisage that this round of Market Engagement will comprise registration of interest and completion of a short Questionnaire, followed by a series of bilateral discussions with a range of interested parties who are representative of the target market.

Planning Information

An initial Industry Day / Launch Event has already been held on 9th September 2024. South West Water now invites interested parties via this Notice to participate in an initial round of Market Engagement, as part of a planned ongoing programme of market engagement for the Cheddar 2 Reservoir Project. Please note that this Notice is not a call for competition. This engagement will help develop a wider understanding of the delivery of the project from both a construction and investment perspective. Interested parties are invited to register their interest at https://www.smartsurvey.co.uk/s/BZ7DLV/, where the Market Engagement Pack containing further information regarding the Project, details of the Market Engagement process and the associated Questionnaire can be obtained.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-055a66
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/055597-2025
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Selective
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
Not specified

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work

65 - Public utilities

66 - Financial and insurance services

71 - Architectural, construction, engineering and inspection services


CPV Codes

45111000 - Demolition, site preparation and clearance work

45112000 - Excavating and earthmoving work

45113000 - Siteworks

45120000 - Test drilling and boring work

45220000 - Engineering works and construction works

45247000 - Construction work for dams, canals, irrigation channels and aqueducts

45310000 - Electrical installation work

45350000 - Mechanical installations

45520000 - Hire of earthmoving equipment with operator

65100000 - Water distribution and related services

66110000 - Banking services

66122000 - Corporate finance and venture capital services

66152000 - Financial market regulatory services

71300000 - Engineering services

71500000 - Construction-related services

71800000 - Consulting services for water-supply and waste consultancy

Notice Value(s)

Tender Value
£1,000,000,000 £1B-£10B
Lots Value
£1,000,000,000 £1B-£10B
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
10 Sep 20255 months ago
Submission Deadline
Not specified
Future Notice Date
30 Jul 20272 years to go
Award Date
Not specified
Contract Period
30 Jun 2029 - 1 Jul 2054 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planned
Lots Status
Planned
Awards Status
Not Specified
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
SOUTH WEST WATER LIMITED
Contact Name
Not specified
Contact Email
cheddarsro@southwestwater.co.uk
Contact Phone
Not specified

Buyer Location

Locality
EXETER
Postcode
EX2 7HR
Post Town
Exeter
Country
England

Major Region (ITL 1)
TLK South West (England)
Basic Region (ITL 2)
TLK4 Devon
Small Region (ITL 3)
TLK43 Devon CC
Delivery Location
TLK South West (England)

Local Authority
Exeter
Electoral Ward
St Loyes
Westminster Constituency
Exmouth and Exeter East

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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