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Monday, 09 March 2009 00:00

Water companies deny making cuts because of downturn

Despite fears that the economic downturn is adversely affecting the current AMP4 spending programme, water companies have denied making cuts in capital expenditure. A recent telephone survey of the 10 major water companies conducted by New Civil Engineer found a consistent denial of spending shortfalls and an insistence that the companies would meet their obligations under the current investment programme which runs until 2010. In several instances companies said that some schemes were being brought forward -  a spokesman for Severn Trent said that some AMP5 projects were being brought forward with tenders currently being assessed and awards due in March with an almost immediate project start. Ofwat said that: "data strongly suggests that the sector is on track to deliver the more than £8bn investment scheduled for 2008 -2010." Water industry suppliers have expressed concern that the ongoing economic crisis is now hitting spending programmes and causing project delays and cancellations. British Water, the trade association for the water industry supply chain, has recently written to the prime minister  suggesting that water companies should be given financial assistance if they are struggling to borrow money.

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