Planning

Cwm Taf Scheme - Direct Procurement for Customers (DPC)

DWR CYMRU CYFYNGEDIG

This public procurement record has 2 releases in its history.

PlanningUpdate

10 Nov 2025 at 17:10

UK2 - Preliminary Market Engagement Notice
Planning

27 Aug 2025 at 12:50

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Dwr Cymru Cyfyngedig (Welsh Water) is in the planning stage of a significant investment project known as the Cwm Taf Scheme, as part of its Direct Procurement for Customers (DPC) strategy. The project involves the design, build, and financing of new and upgraded water treatment facilities across two locations in South Wales: Dan-y-Castell Farm and Llwyn-onn, with an estimated total contract value of £667.2 million. The planning stage, initiated on 27th August 2025, includes extensive market engagement, with initial registration for events concluding on 14th November 2025. The statutory pre-application planning consultation started at the end of October 2025, and an in-person launch event is scheduled for 19th November 2025 in Cardiff, where technical documentation and the procurement timeline will be discussed. Welsh Water is utilizing an open, competitive procurement method for this utilities sector project, enhancing water distribution services and environmental measures conforming to Welsh devolved regulations.

This tender offers abundant growth opportunities for businesses in construction, water services, and infrastructure investment sectors. With a focus on sustainable and value-oriented solutions, the project necessitates collaboration with infrastructure investors, engineering firms, and consortia capable of delivering over a 25-year contract term. Suitable businesses could capitalise on the design-build-finance model, contributing to significant works such as water treatment facilities, pumping stations, and environmental management systems. Further market engagement activities are planned to explore commercial strategies and innovations that benefit both customers and the environment, presenting lucrative entry points for firms poised to deliver on competitive, sustainable, and regulatory-conformant terms.

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Notice Information

Notice Title

Cwm Taf Scheme - Direct Procurement for Customers (DPC)

Notice Description

Dwr Cymru Cyfyngedig (DCC) / Welsh Water is the largest water and sewerage company in Wales and the sixth largest operating in England and Wales. Responsible for providing high-quality drinking water for over three million customers and for taking away, treating and properly disposing of the wastewater that is produced. DCC/Welsh Water is committed to securing water supplies for future generations while protecting the environment. Our primary responsibility is to operate, maintain and upgrade this large network of assets to ensure a safe and reliable drinking water supply and to deal effectively with discharges so as to protect the environment. As part of its Cwm Taf Supply Strategy, DCC/Welsh Water is seeking to progress a major investment project to design and build a new water treatment works and develop an existing water treatment works (the Cwm Taf Scheme). The Cwm Taf Scheme has been designated under Ofwat's Direct Procurement for Customers (DPC) programme. The Cwm Taf Scheme is intended to be delivered primarily on two separate sites, one located in the Merthyr Area of South Wales and one in the Bannau Brycheiniog National Park. The scheme is about to enter a planning application stage following statutory consultation. Further details can be found on our website: https://corporate.dwrcymru.com/en/community/investment-projects/cwm-taf-water-supply-strategy DCC/Welsh Water is looking to utilise a Competitively Appointed Provider (CAP) through a Design-Build-Finance (DBF) model. The scheme includes design and build of a new water treatment works on a brownfield site at Dan-y-Castell Farm, along with a raw water pumping station at Pontsticill (referred to as the Dan-y-Castell project) and upgrading Llwyn-onn water treatment works (referred to as the Llwyn-onn project). The Cwm Taf Scheme is therefore a two-site project comprising Dan-y-Castell (with an estimated value of PS362,000,000 excluding VAT) and Llwyn-onn (with an estimated value of PS194,000,000 excluding VAT). This notice seeks market engagement from suitably qualified parties capable of delivering a secure, sustainable, and value-oriented solution for customers for this major project aligned to DCC/Welsh Water's Cwm Taf Water Supply Strategy and the sustainable and environmental objectives of the Welsh Assembly Government including but not limited to the Well-being of Future Generations (Wales) Act 2015. Contract award is envisaged to be August 2028. Milestone dates include DWI Regulatory Completion (envisaged to be March 2032) followed by an estimated 12 month period for testing, and a 25 year term from completion of testing. All values and dates set out in this preliminary market engagement notice are indicative and reflect current analysis.

Planning Information

DCC/Welsh Water is issuing this Preliminary Market Engagement Notice as part of the early market consultation for the Cwm Taf Scheme. DCC/Welsh Water seeks to engage with market participants who may be interested in delivering the scheme through a DBF model. At this stage we have not circulated the questionnaire that was referred to in the original version of this notice. Activity to date has involved suppliers registering interest in the project in response to the original notice The deadline for initial registration was 22 September 2025 and DCC/Welsh Water is now updating this Notice to provide details of its first market engagement activity. Since September we have been working on our technical documentation as part of our preparation for statutory planning consultation. We launched our statutory pre-application planning consultation at the end of October 2025. DCC/Welsh Water intends to share key technical documentation associated with the Cwm Taf Scheme and relevant to the future procurement process, as part of the market engagement process. Alongside the release of this information, DCC/Welsh Water intends to host a launch in-person event for registered organisations on the 19th of November 2025 in Cardiff which will focus on technical requirements and take the opportunity to present on our emerging reference design for the scheme. At the launch event we will also provide an overview of our procurement timeline. We are seeking feedback as part of market engagement on the viability of the procurement plan against the backdrop of investment in the UK and constructability of the two projects to meet regulatory commitments, sustainability, social value, and plans to manage environmental impact. For more information about the event, market participants must register via email (see contact details below). DCC/Welsh Water intends to undertake further market engagement event(s) between December 2025 and February 2026 to discuss DCC/Welsh Water's preferred commercial and contracting models. The focus at these events will be on the main aspects of the contractual agreement, risk allocation, incentivisation, funding duration and financing models and opportunities within the procurement process to offer value for money for DCC/Welsh Water's customers. Details in relation to the further event(s) will be provided to registered organisations. The Cwm Taf Scheme includes (but is not limited to): • Water Treatment Works • Pumping stations • Transfer pipelines • Environmental and mitigation measures • Treated Water Storage DCC/Welsh Water is looking to appoint a CAP through an open, fair, and transparent competitive procurement process and anticipates that the CAP will be responsible for the design, build, and financing of the scheme for a defined contract term of 25 years. This market engagement is intended to focus on: • Assessing market capacity and capability • Obtaining market feedback on commercial models best suited to deliver value for money for customers • Informing procurement strategy and timeline • Identifying innovations and barriers to entry The scope of this market engagement is intended to include seeking feedback on: • Design handover • Technical feasibility and constructability insights • Financing models • CAP Agreement • Commercial risk allocation and delivery timelines • Market constraints • Market innovation opportunities • Environmental or regulatory factors DCC/Welsh Water encourages responses from: • Infrastructure investors and major infrastructure financing bodies • Design, Construction and Engineering firms • Joint ventures or consortia Please email amanda.edwards@dwrcymru.com to register/participate in the market engagement process. The deadline for initial registration for market engagement was 22/09/2025. The deadline to register for the in-person event in Cardiff is 14th November 2025. Further market engagement activities in relation to the Cwm Taf Scheme this project and associated deadlines will be provided in updates to this notice. This notice is not a call for competition, a tender notice, or a commitment to procure. DCC/Welsh Water reserves the right to alter or terminate the market engagement process at any time without notice. DCC/Welsh Water is not liable for any costs or expenses incurred by any party in responding to this market engagement. Submission of a response does not guarantee inclusion in any future procurement process. DCC/Welsh 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). DCC/Welsh 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 contacting you for further information and to invite participation in future market engagement activities connected with the Cwm Taf Scheme only. Any information you provide may be shared with our Cwm Taf Scheme commercial and or legal advisors.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-058e99
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/072565-2025
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
£667,200,000 £100M-£1B
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
Not specified

Notice Dates

Publication Date
10 Nov 20253 months ago
Submission Deadline
Not specified
Future Notice Date
14 Nov 2025Expired
Award Date
Not specified
Contract Period
30 Aug 2028 - 30 Aug 2058 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
DWR CYMRU CYFYNGEDIG
Contact Name
Amanda Edwards
Contact Email
amanda.edwards@dwrcymru.com
Contact Phone
Not specified

Buyer Location

Locality
CARDIFF
Postcode
CF3 0LT
Post Town
Cardiff
Country
Wales
Major Region (ITL 1)
TLL Wales
Basic Region (ITL 2)
TLL5 South East Wales
Small Region (ITL 3)
TLL52 Cardiff and Vale of Glamorgan
Delivery Location
TLL Wales
Local Authority
Cardiff
Electoral Ward
Trowbridge
Westminster Constituency
Cardiff East

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

Download

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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