Thames Water has announced that the Thames Tideway Tunnel will be funded by a special purpose company formed by a joint venture of Allianz, Amber Infrastructure Group, Dalmore Capital and Dif.
Under the deal, the joint venture which will be known as Bazalgette Tunnel, will fund, build and own the Tideway Tunnel.
The final hurdle in the funding is formal designation and licensing of the infrastructure provider by Water industry regulator Ofwat.
In a statement Thames Water said: “The unique opportunity has attracted global interest and the competition to be appointed the infrastructure provider has been keenly contested. Twelve parties were invited to tender culminating in two highly competitive bids received in the final ‘revise and confirm’ round.”
Bazalgette Tunnel’s responsibilities will include managing the contractors, who will construct the 25km Tideway Tunnel from Acton to Abbey Mills where it will link up with the Lee Tunnel, which has been under construction since 2011.
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.
Construction of the estimated £4.2bn project (2011 prices) will be under three main contracts. The construction preferred bidders were announced in February 2015, with BMB JV (joint venture of Bam Nuttall, Morgan Sindall and Balfour Beatty) selected for the west contract, FLO JV (joint venture of Ferrovial Agroman UK and Laing O’Rourke Construction) for the central contract and CVB JV (joint venture of Costain, Vinci Construction Grands Projects and Bachy Soletanche) for the east contract. Construction is expected to commence in 2016 and reach completion by 2023.