Kelda signs ฃ110m Northern Ireland water contract

A consortium comprising Kelda Water Services, Earth Tech and Farrans* has today (Tuesday, May 30th) signed a major £110 million water services contract in Northern Ireland.

The 25-year project - the first drinking water Public Private Partnership (PPP) contract offered by the Department for Regional Development Water Service - will involve the design, construction and operation of four new water treatment works providing almost half of the province's drinking water supply.

Managing director of Kelda Water Services (KWS), Paul Wynn, said: "Being awarded this contract is excellent news and follows a number of recent successful contract wins for KWS, making the company one of the leading players in the UK water contract operations market.

"A great deal of hard work has gone into preparing the Northern Ireland contract, both by the Dalriada team and the Water Services team. We are now looking forward to working with Water Service and our partners on this exciting project to provide significant drinking water quality benefits to customers across Northern Ireland."

Work will begin immediately on the project, upgrading the current facilities and installing new water mains leading from the water treatment works to service reservoirs at some of the sites. The existing facilities will remain in operation until the upgraded plants are in operation, with the new infrastructure set to be commissioned in 2008.

Once completed, the £110 million investment in new plant and mains will provide 400 megalitres of water every day. When the treatment facilities come on line, Dalriada Water will operate and maintain the sites for 23 years. The estimated value of this contract over the full concession period is £500 million.

In January 2005, KWS signed a 15-year, £700 million deal to operate and maintain waste water treatment and collection operations in South Wales. Two years ago, it was also chosen by the Ministry of Defence for a £1 billion contract to manage and operate more than 1,000 sites, ranging from air force bases, army garrisons and dock yards to offices and housing for a period of 25 years. KWS already operates four waste water plants for Scottish Water under a long term PFI concession.

Notes to Editors:

*The consortium is collectively known as Dalriada Water. Kelda Water Services is the non-regulated water services subsidiary of Kelda Group plc and a sister company of Yorkshire Water.

For further information, please contact Karen O'Rourke (01274 692653)