In early 2000 Anglian Water Services selected six construction partners on a framework basis for all work covering the period April 2000 to March 2005, the current review period. This followed a comprehensive tendering exercise, and means that the company no longer spot-tenders for construction work.
Current and future projects
When the water regulator Ofwat set Anglian Water Services' five-year investment programme from April 2000 to March 2005, it estimated that the company would need to invest an average of £280m a year – £1.4bn in total – to meet existing and forthcoming drinking and wastewater quality standards, and to maintain its asset base.
This total assumed that Anglian Water would be able to improve the efficiency of its maintenance and capital programmes by between 5% and 10%. Allowing for inflation, the regulated water company is forecast to invest about £1.55bn over the five-year period.
In the second year of the five-year programme, 2001/02, the regulated water company invested £264m. In its review of the financial performance and expenditure of the water companies in England and Wales, published in July 2002, Ofwat raised its concern about the continued low level of investment across the industry. Anglian's investment was not far off that required by Ofwat's plans, although investment will need to average at about £300m a year over the next three years. Based on published figures, Anglian Water Services is set to invest about £1bn over the next three years.
Anglian Water Services is owned by AWG, which also owns Morrison Construction. At the time of acquisition, the parent company's vision was to "become a leader in the creation, development, management and operation of infrastructures in the UK by 2005 and a significant global player by 2010". Losses relating to Morrison Construction have led the group to propose a restructuring. This was recently detailed in the last interim statement and included the sale of its international water assets, valued at close to £200m.
In general terms, the group's restructuring will involve splitting it in two – water services (comprising Anglian Water Services), and infrastructure management. The latter includes Morrison's main activities, Morrison Utility Services, Morrison Construction and Specialist PFI.
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Anglian House, Ambury Road,
Huntingdon, Cambs PE29 3NZ
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