Allianz selected Preferred Bidder for Thames Tideway Tunnel

Thames Water has selected a preferred bidder to deliver the Thames Tideway Tunnel. The newly-created, special purpose company Bazalgette Tunnel Limited, whose shareholders are a consortium of investors comprising funds managed by Allianz, Amber Infrastructure Group, Dalmore Capital Limited and DIF is in line to own, finance and deliver the landmark project.

This unique opportunity has attracted global interest and the competition to be appointed the Infrastructure Provider has been keenly contested with 12 parties invited to tender culminating in two highly competitive bids received in the final ‘revise and confirm’ round.

Balancing the interests of customers, investors and taxpayers to deliver this successful outcome, the ground-breaking delivery model, developed by Thames Water, Government and Ofwat forms a potential blueprint for other major infrastructure projects.

Thames Tideway Tunnel is required to tackle the discharge of untreated sewage into the tidal River Thames through central London and to significantly increase the capacity in the London sewerage network. Along with the recently completed upgrade of five sewage treatment works on the tidal Thames (including at Beckton), both the Lee Tunnel and the Thames Tideway Tunnel are needed to stem the 39 million tonnes of untreated sewage that overflow into the tidal river in a typical year from the capital’s overstretched, Victorian sewerage network.

The Infrastructure Provider’s responsibilities will include managing the contractors, who will construct the Thames Tideway Tunnel. The tunnel will stretch 25 km (15 miles), largely beneath the bed of the River Thames, from Acton in the west to Abbey Mills near Stratford in the east. There it will join up with the Lee Tunnel, currently under construction by Thames Water.

"We are convinced that this project will modernize a pivotal aspect of London’s essential infrastructure and are‎ delighted that Allianz can help to upgrade London’s sewage system for 22nd Century London", said Christian Fingerle, Chief Investment Officer responsible for infrastructure investments at Allianz Capital Partners. "This investment will be a very important partnership between Allianz, our consortium partners, our contractors and Thames Water, working closely with the UK water regulator Ofwat and the Environment Agency to achieve a major improvement to London's iconic river."

The new Infrastructure Provider for the Thames Tideway Tunnel will be chaired by Sir Neville Simms, with former Crossrail Programme Director Andy Mitchell as CEO.