---
title: "Cwm Taf Water Supply Strategy Procurement Scheme - Direct Procurement for Customers (DPC)"
ocid: "ocds-h6vhtk-06d32b"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-h6vhtk-06d32b"
markdown_url: "https://d3tenders.com/contract/ocds-h6vhtk-06d32b.md"
json_url: "https://d3tenders.com/contract/ocds-h6vhtk-06d32b.json"
source: "Find A Tender Service"
current_stage: "Planning"
buyer: "DWR CYMRU CYFYNGEDIG"
published: "2026-07-24"
---

# Cwm Taf Water Supply Strategy Procurement Scheme - Direct Procurement for Customers (DPC)

Buyer: DWR CYMRU CYFYNGEDIG  
Current stage: Planning  
OCID: ocds-h6vhtk-06d32b

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## Summary

The public procurement process initiated by Dŵr Cymru Cyfyngedig, operating as Welsh Water, is focused on the ambitious Cwm Taf Water Supply Strategy Procurement Scheme. This major project seeks to enhance water treatment and supply infrastructure primarily around Merthyr Tydfil in South Wales and the Bannau Brycheiniog National Park. Key industry categories involved encompass construction, water distribution, and financial services, with a special emphasis on utilities. The scheme is in the planning stage, aiming for a contract award by late 2028. The process includes market engagement activities, such as an investor-focused session on 4 August 2026, and in-person market events in Cardiff and London on 8 and 9 September 2026, respectively. Interested parties must register by 10 August 2026, offering a platform for feedback and discussion on financing and commercial strategies.

This procurement presents significant opportunities for businesses involved in infrastructure design, construction, and finance. Companies capable of providing support in large-scale projects, particularly those offering debt and equity finance, or those specialising in water projects and environmental solutions, would find this an ideal opportunity. Firms with expertise in engineering design, civil engineering, and construction management will benefit from the scope of works, which includes new water treatment plants and related facilities. With the scheme's potential value of over £667 million, engaging in this procurement could significantly contribute to business growth through participation in shaping and executing substantial infrastructure projects aligned with vital sustainable and environmental objectives.

## Notice

Dwr Cymru Welsh Water (DCWW) 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. DCWW 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 Water Supply Strategy ("Cwm Taf WSS"), DCWW is seeking to progress a major investment project to design and build new water treatment works and develop an existing water treatment works (the Cwm Taf WSS Procurement Scheme). The Cwm Taf WSS Procurement Scheme has been designated under Ofwat's Direct Procurement for Customers (DPC) programme. The Cwm Taf WSS Procurement Scheme is intended to be delivered primarily on two separate sites, one located in the vicinity of MerthyrTydfil, South Wales and one within the boundaries of the Bannau Brycheiniog National Park. DCWW is looking to appoint a Competitively Appointed Provider (CAP) utilising the Direct Procurement for Customers (DPC) model. The scheme includes the Design, Build and Finance (DBF) of a new water treatment works on an agricultural land at Dan-y-Castell Farm, along with a raw water pumping station at Pontsticill (referred to as the Dan-y-Castell project) and Llwyn-onn Water Treatment Works upgrade (referred to as the Llwyn-onn project). The Cwm Taf WSS Procurement Scheme is therefore a two-site project comprising Dan-y-Castell (currently with an estimated value of PS434,400,00 including VAT / PS362,000,000 excluding VAT) and Llwyn-onn (currently with an estimated value of PS232,800,000 including VAT / PS194,000,000 excluding VAT). The Cwm Taf WSS Procurement Scheme includes (but is not limited to): -Water Treatment Works -Pumping stations -Transfer pipelines -Environmental and mitigation measures -Treated Water Storage This notice seeks to inform the market of DCWW's upcoming market engagement activities for the Cwm Taf WSS Procurement Scheme and seek engagement from interested suppliers, including: -a Market Engagement process focused on investors, lenders and organisations capable of providing institutional finance, to specifically seek feedback on the emerging commercial model and financing approach; and -In-person Market Engagement events open to investors, lenders, contractors, designers and other delivery organisations interested in the Cwm Taf WSS Procurement Scheme. Across these activities, DCWW is seeking engagement from organisations capable of supporting the delivery and financing of a secure, sustainable and value-driven solution for customers through this major DPC-designated infrastructure project. The engagement activities will support the ongoing development of the procurement and commercial strategies (and associated documentation) and will help inform the delivery of the Cwm Taf Water Supply Strategy and the sustainable and environmental objectives of the Welsh Government, including (but not limited to) the Wellbeing of Future Generations (Wales) Act 2015. Following a competitive procurement competition, CAP contract award is anticipated to be late 2028. The CAP contract will progress the Scheme through detailed design, construction, testing and commissioning activities, including an anticipated 12-month Reliability and Optimisation Period. The Scheme will then be completed to allow commencement of the DCWW managed operational term. All dates are indicative. All values and dates set out in this preliminary market engagement notice are indicative. This notice is not a call for competition, a tender notice, or a commitment to procure

### Planning Information

Market Engagement – Investors and Lenders 
DCWW wishes to engage with organisations that are infrastructure investors, lenders or other providers of institutional capital with experience of financing major infrastructure projects.
Investors, lenders or other providers of institutional capital wishing to provide feedback on the emerging commercial model, financing approach and financeability of the Cwm Taf WSS Procurement Scheme should register their interest by emailing CwmTafScheme@dwrcymru.com no later than 4 August 2026. 
Registered participants will be issued with a questionnaire for completion and return by the response deadline which will be set out in the questionnaire. Following review of questionnaire responses, DCWW will consider responses and may, at its discretion, engage in one-to-one discussions to explore and clarify matters raised in their submissions and obtain further feedback on key commercial, contractual and financing issues.
Who Should Participate
-Providers of debt and equity finance
-Developers and sponsors
in each case in major new infrastructure projects.
To promote transparency and ensure equal treatment of all market participants, DCWW intends to share an anonymised summary of key themes and insights arising from this focused Market Engagement with the wider market in advance of the Market Engagement events referred to below. No organisation-specific information will be disclosed.
Market Engagement – Wider Market
DCWW intends to hold in-person Market Engagement events open to the wider market – whether investors, lenders, contractors, designers and other delivery organisations - interested in the Cwm Taf WSS Procurement Scheme.
The events will provide an update on the Cwm Taf WSS Procurement Scheme, the proposed procurement approach, commercial model, contractual framework and financing strategy, and will provide an opportunity for participants to ask questions and provide feedback on the developing procurement and commercial arrangements.
Details of the event format, indicative agenda, locations and registration arrangements are set below.
Who Should Participate
-Infrastructure investors and major infrastructure financing bodies
-Design, construction and engineering firms
-Contractors and other delivery organisations
DCWW welcomes participation from existing joint ventures and consortia and encourages the formation of new partnerships where appropriate.
Market Engagement Event Dates and Locations
DCWW intends to hold in-person Market Engagement events at the following locations:
-Cardiff – 8 September 2026, time TBC
-London – 9 September 2026, time TBC
Organisations wishing to attend should register by 10 August 2026. Further details, including venue information and the final agenda, will be provided to registered participants.
The Market Engagement events are expected to comprise presentations and opportunities for market participants to engage in discussions and provide feedback on the developing procurement, commercial, contractual and financing approach for the Cwm Taf WSS Procurement Scheme.
For further information, market participants should register via the contact details below.
Registration Process
Please email CwmTafScheme@dwrcymru.com to register your interest in either:
-the focused investor/lender Market Engagement; and/or
-the in-person Market Engagement events.
DCWW will provide further details regarding participation, key dates and engagement materials following registration.
When emailing, please include one of the following subject lines to indicate your preferred engagement activity:
-Registration – Investor/Lender Market Engagement
-Registration – In-Person Market Engagement Event
-Registration – Investor/Lender and In-Person Market Engagement Events (if registering for both)
Purpose of this Notice and Previous Engagement
Since the previous market engagement, DCWW has continued to develop the commercial, contractual and financing strategy for the Cwm Taf WSS Procurement Scheme. In particular, further consideration has been given to the proposed CAP Agreement structure, risk allocation framework, payment mechanism, financing approach and procurement strategy. This engagement seeks to obtain market feedback on these. 
Topics for Feedback/Discussion
Topics that DCWW is seeking market feedback on include:
-CAP Agreement structure and contractual framework 
-Commercial and risk allocation principles 
-Payment mechanism and incentivisation arrangements 
-Financing structures and financeability considerations 
-Contract duration and residual value approach 
-Procurement process design and bidder participation 
-Opportunities to improve value for money for customers 
Future Market Engagement
This notice covers both the planned investor/lender Market Engagement and the in-person Market Engagement events. DCWW may undertake additional market engagement activities and will update the market as appropriate.
General 
Participation in any market engagement activity is not a condition of participation in any future procurement process. DCWW may use information obtained through these engagement activities to refine its procurement strategy, commercial model, contractual arrangements and procurement documentation. Details of the preliminary market engagement activities, documents shared, key themes arising from feedback and any relevant questions and answers will be made available to the market as appropriate and reflected in the procurement documentation issued at the launch of the competitive process.
DCWW reserves the right to alter or terminate the market engagement process at any time without notice.
DCWW 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.
DCWW 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).
DCWW 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 WSS Procurement Scheme only. Any information you provide may be shared with our Cwm Taf WSS Procurement Scheme commercial and or legal advisors.
Further information on the Cwm Taf WSS Procurement Scheme and this market engagement can be found in the supporting press release available at: https://corporate.dwrcymru.com/en/news-media/2026/welsh-water-launches-market-engagement-for-larges…

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Find A Tender Service |
| Latest notice | https://www.find-tender.service.gov.uk/Notice/070264-2026 |
| 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 |
| All stages | Planning |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 24 Jul 2026 |
| Submission deadline | Not specified |
| Future notice date | 10 Aug 2026 |
| Award date | Not specified |
| Contract period | 30 Nov 2028 - 30 Nov 2058 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | £556,000,000 |
| Lots value | Not specified |
| Awards value | Not specified |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Planning |
| Lots status | Planning |
| Awards status | Not specified |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | DWR CYMRU CYFYNGEDIG |
| Locality | CARDIFF |
| Post town | Cardiff |
| Postcode | CF3 0LT |
| Country | Wales |
| ITL 1 | TLL Wales |
| ITL 2 | TLL5 South East Wales |
| ITL 3 | TLL52 Cardiff and Vale of Glamorgan |
| Local authority | Cardiff |
| Electoral ward | Trowbridge |
| Westminster constituency | Cardiff East |
| Delivery location | TLL15 Central Valleys |

## CPV Codes

### Divisions

- 45 - Construction work
- 65 - Public utilities
- 66 - Financial and insurance services
- 71 - Architectural, construction, engineering and inspection services

### Codes

- 45000000 - Construction work
- 45200000 - Works for complete or part construction and civil engineering work
- 45231100 - General construction work for pipelines
- 45231300 - Construction work for water and sewage pipelines
- 45240000 - Construction work for water projects
- 45252126 - Drinking-water treatment plant construction work
- 65100000 - Water distribution and related services
- 66100000 - Banking and investment services
- 66122000 - Corporate finance and venture capital services
- 71322000 - Engineering design services for the construction of civil engineering works
- 71500000 - Construction-related services
- 71540000 - Construction management services
- 71541000 - Construction project management services

## Release History

- 24 Jul 2026 at 11:50 - Planning - UK2 - Preliminary Market Engagement Notice - https://www.find-tender.service.gov.uk/Notice/070264-2026

## Documents

- https://www.find-tender.service.gov.uk/Notice/070264-2026
  24th July 2026 - Preliminary market engagement notice on Find a Tender

## Notice URLs

- https://corporate.dwrcymru.com/en/news-media/2026/welsh-water-launches-market-engagement-for-larges…
- https://www.legislation.gov.uk/ukpga/2023/54/contents

## Provenance

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