South West Water is seeking supply chain engagement with contractors and investors in the £1 billion Cheddar 2 Reservoir project – the water company is planning to hold an initial industry briefing and launch event scheduled for Tuesday 9th September 2025, to be held at a central London venue.

The Cheddar 2 Reservoir project is one of two major projects in the early planning and development stage as part of wider plans from the West Country Water and Environment Group (WCWE) – the other project is the Poole Water Recycling and Transfer Project which is being led by Wessex Water.

The water company is providing advance information for the market of South West Water's intention to procure a Competitively Appointed Provider (CAP) to design, build, finance, and where appropriate, operate and maintain the Cheddar 2 Reservoir water treatment and transfer scheme under the Direct Procurement for Customers (DPC) model.

At this stage, it is intended that the project scope will consist of a new earth embankment reservoir with a useable capacity of 8,200Ml, adjacent to the existing Cheddar Reservoir.

The project also includes associated ancillary works, including a raw water transfer to a new water treatment works, and approximately 75km of potable water transfer pipeline from South West Water's Bristol area to its customers in Devon.

The estimated capital value of the work is approximately £750 million (excluding VAT), and the estimated total expenditure (inclusive of operating and maintenance costs) is c. £1 billion (excluding VAT).

South West Water is now planning a programme of market engagement for the Cheddar 2 Reservoir Project, and is inviting potential investors and contractors to express their interest in participating in a series of engagement activities, beginning with an initial in-person industry briefing and launch event scheduled for Tuesday 9th September 2025 at a central London venue.

The water company says the programme of engagement is proposed to help develop a wider understanding of the delivery of the project from both a construction and investment perspective. It also presents an opportunity for South West Water to engage and collaborate with the market in refining its delivery and commercial model, procurement approach and contracting terms.

The programme of market engagement also seeks to encourage multi-party discussions that will align the project's development and presentation to market with market trends, taking into account the perspectives of both investors and main works contractors who it is envisaged would form and comprise the CAP.

Investors and contractors are invited to register their interest in attending the initial planned launch event for the Cheddar 2 Reservoir Project via an online form

Once registered as attendees the companies will then be provided with further information about arrangements for the day.

Depending on the level of responses, South West Water said it may need to limit to two attendees from each organisation.

The industry briefing event for the Cheddar 2 Reservoir project is being run jointly with the Poole Water Recycling and Transfer Project. Investors and contractors will also be able to express their interest in attending the separate briefing for the Poole Water Recycling and Transfer Project via the online form.

Click here to access the online form to register your interest in attending.