Planning

Grand Union Canal Transfer Scheme - Moving Water Together

AFFINITY WATER LIMITED

This public procurement record has 2 releases in its history.

PlanningUpdate

16 Jul 2025 at 12:03

UK2 - Preliminary Market Engagement Notice
Planning

15 Jul 2025 at 10:30

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Affinity Water Limited, the largest water-only supplier in the UK, is currently in the planning stage of a major procurement initiative titled the "Grand Union Canal Transfer Scheme - Moving Water Together". This project is classified under industry categories such as construction work, water distribution, and banking services and is focused on leveraging existing canal infrastructure to ensure strategic water transfer from the Midlands to the Southeast of England. The procurement process is initiated through the Ofwat's Direct Procurement for Customers (DPC) programme, using a Competitively Appointed Provider (CAP) model, with the primary procurement method involving Design-Build-Finance (DBF), Design-Build-Finance-Maintain (DBFM), and Design-Build-Finance-Operate-Maintain (DBFOM) models. Key milestones in this planning phase include a Preliminary Market Engagement Notice due on 5th September 2025, aimed at gauging market capacity and informing the procurement strategy. The project's anticipated contract period runs from 30th September 2028 to 30th June 2057, with Affinity Water's headquarters located in Hatfield, UK.

The Grand Union Canal Transfer scheme presents substantial opportunities for various business sectors. Infrastructure investors, financiers, and engineering and construction firms are particularly well-suited to contribute expertise and resources to this nationally significant project. The scheme's comprehensive scope, including water treatment works, pumping stations, and environmental mitigation efforts, requires innovative financing models and operational strategies, making it attractive for joint ventures and consortia. Businesses capable of providing technical feasibility insights, managing commercial risks, and contributing to sustainable environmental practices stand to benefit considerably, as the long-term nature and substantial £425m budget (net) promise significant returns and growth in the utilities and sustainability sectors.

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Notice Information

Notice Title

Grand Union Canal Transfer Scheme - Moving Water Together

Notice Description

Affinity Water is the largest water-only supplier in the UK, serving over 3.8 million people across the southeast of England. With a strong focus on sustainability, innovation, and customer service, Affinity Water is committed to securing water supplies for future generations while protecting the environment. Our work includes reducing water leakage, promoting water efficiency, and engaging with communities to ensure a reliable and sustainable water future. The Grand Union Canal Transfer scheme has been designated a project of national significance, forming part of Ofwat's Direct Procurement for Customers (DPC) programme. Affinity Water is looking to utilise a Competitively Appointed Provider (CAP) through a Design-Build -Finance (DBF) or Design-Build-Finance-Operate-Maintain (DBFOM) model or variations thereof (including Design-Build-Finance-Maintain (DBFM)). The scheme facilitates strategic water transfer from the Midlands to the Southeast, leveraging existing canal infrastructure alongside new assets, including water treatment works, pipelines, pumping stations, and environmental mitigation works. This notice seeks market engagement from suitably qualified parties capable of delivering a secure, sustainable, and value-oriented solution for customers aligned with long-term national water resilience objectives.

Planning Information

Affinity Water Limited is issuing this Preliminary Market Engagement Notice as part of the early market consultation for the Grand Union Canal Transfer scheme (GUCT scheme), a nationally significant water infrastructure initiative. The southern section of this project is to be delivered under Ofwat's Direct Procurement for Customers (DPC) programme, using a Competitively Appointed Provider (CAP) model. Affinity Water seeks to engage with market participants who may have the capability, experience, and interest in delivering the scheme through a Design-Build-Finance (DBF), Design-Build-Finance-Maintain (DBFM) or Design-Build-Finance-Operate-Maintain (DBFOM) model. This early market consultation is a Request for Information (RFI) to help shape the commercial, technical, and delivery strategy of the project and inform the forthcoming procurement process. The project includes (but is not limited to): • Water Treatment Works • Pumping stations • Transfer pipelines • Canal enhancements • Environmental and mitigation measures • Long-term operation and maintenance services (if DBFOM is adopted) Affinity Water is looking to appoint a Competitively Appointed Provider (CAP) through an open, fair, and transparent competitive procurement process. Affinity Water anticipates that the CAP will be responsible for the design, build, and financing of the scheme, with options to include operation and maintenance for a defined contract term of 25 years. This Market Engagement is focused on: • Gauging market capacity and capability • Understanding potential delivery models and risks • Informing procurement strategy (DBF, DBFM & DBFOM) • Identifying innovations and barriers to entry The scope of this RFI includes: • Technical feasibility and constructability insights • Financing models, including private sector appetite and structures • Operations and maintenance considerations (where applicable) • Commercial risk allocation and delivery timelines • Market constraints or innovations • Environmental or regulatory factors Affinity Water encourages responses from: • Infrastructure investors and financiers • Construction and engineering firms • Operations and maintenance specialists • Joint ventures or consortia Please email guctscheme@affinitywater.co.uk to register/participate in the market engagement process. This notice is not a call for competition, a contract notice, or a commitment to procure. Affinity Water reserves the right to alter or terminate the market engagement process at any time without notice. Affinity Water is not liable for any costs or expenses incurred by any party in responding to this RFI. Submission of a response does not guarantee inclusion in any future procurement or prequalification process. Affinity water reserves the right to enter into further rounds of pre-market engagement. All future procurement opportunities will be published through the Central Digital platform (CDP). Affinity Water will process your personal data, such as your name and contact details, in accordance with its obligations under the UK General Data Protection Regulation and Data Protection Act 2018. Your personal data will be used for the purposes of reviewing your questionnaire and contacting you for further information only. Any information you provide may be shared with our Grand Union Canal Transfer scheme commercial partners.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-055f31
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/040510-2025
Current Stage
Planning
All Stages
Planning

Procurement Classification

Notice Type
UK2 - Preliminary Market Engagement Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Not Specified
Procurement Method Details
Not specified
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

CPV Codes

45000000 - Construction work

65100000 - Water distribution and related services

66100000 - Banking and investment services

Notice Value(s)

Tender Value
£425,000,000 £100M-£1B
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
16 Jul 20257 months ago
Submission Deadline
Not specified
Future Notice Date
5 Sep 2025Expired
Award Date
Not specified
Contract Period
29 Sep 2028 - 30 Jun 2057 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Planning
Lots Status
Planning
Awards Status
Not Specified
Contracts Status
Not Specified

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
AFFINITY WATER LIMITED
Contact Name
Not specified
Contact Email
guctscheme@affinitywater.co.uk
Contact Phone
Not specified

Buyer Location

Locality
HATFIELD
Postcode
AL10 9EZ
Post Town
St Albans
Country
England
Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH2 Bedfordshire and Hertfordshire
Small Region (ITL 3)
TLH26 North and East Hertfordshire
Delivery Location
TLF East Midlands (England), TLG West Midlands (England), TLJ South East (England)
Local Authority
Welwyn Hatfield
Electoral Ward
Hatfield Villages
Westminster Constituency
Welwyn Hatfield

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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