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Does AMP6
represent a
sea change for
infrastructure
investment in the
water industry?
2
AMP6 kicked off in March assets and finding ways to five year AMP period.
2015, with the utility companies minimise cost of operation.
moving into the sixth phase Ofwat gave final approval to a
of asset management The Ofwat document declared £44Bn spend by water firms
following a long period of that water companies should over the next period at the end
tendering and negotiations. be focusing on what it called of 2014, saying that the deals
‘long-term outcomes’, which it struck with the water companies
This phase of investment has hopes will encourage innovative will lead to 5% average fall in
seen a shift in focus from short ways of working that will deliver bills across England and Wales.
term investment, replacing the services for less money, and with
ageing structures and systems less impact on the environment. Jonson Cox, Ofwat Chairman,
to improve efficiency, to a ‘totex’ As a result, the regulator expects said: “This is an important step in
- or total expenditure investment to see substantial efficiency maintaining customers’ trust and
- looking to improve and savings being delivered during confidence in the water sector.
upgrade the systems for future the five year AMP6 period.
benefits and in the long-term. “We set out to deliver a
At the same time, Ofwat wants challenging but fair outcome.
The realignment was set out to encourage companies to We are requiring companies
in an Ofwat report, published manage water supplies more to meet higher service
in 2013, which showed the sustainably. It believes this will standards and deliver on their
methodology Ofwat would use happen because the companies promises to customers.
to assess water companies’ will no longer have a bias toward
business plans for AMP6. capital intensive and resource “We are bringing down bills so
intensive solutions, and because customers can expect value
The new methodology, which it is introducing incentives to for money, while investors can
relates to water supply and encourage the water companies earn a fair return. Companies
sewerage in England and to trade water and to source it will need to stretch themselves
Wales, made it clear that the form areas that do not damage to deliver much more with the
water industry’s emphasis the natural environment. same level of funding as in
was shifting from the ‘ticking previous years. We will achieve
regulatory boxes’ approach of This shift in emphasis is more resilient infrastructure and
previous AMPs to focusing on leading to water companies better service as a result.”
value for money for customers. looking for different skill-sets
from their supply chains - Alongside the asset investment
For the first four AMP periods, expertise that will help make and upgrade, major projects set
water companies’ business more of existing assets. to take place include Severn
plans were dominated by the Trent Water’s Birmingham
need to meet tough European The focus on long-term thinking Resilience project, Wessex
Union legislation covering is also being reflected in the Water’s integrated supply grid,
issues like wastewater quality way some water companies and modernisation of United
and wildlife habitats. are looking to procure the firms Utilities’ Davyhulme wastewater
that will deliver work during treatment works, with the
This period will see water AMP6, with many opting for Thames Tideway Tunnel to
companies trying to get the alliances, or for frameworks be financed and delivered by
most out of their existing that run beyond the traditional an independent provider.
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Shaping The Future
6
For more information about BIM4Water please
visit: www.bimtaskgroup.org/bim4water
Environments for the water thanks to clients having access defined Employers’ Information
sector and how they relate to the to the right asset data. Requirements stating what
BIM standards such as PAS1192. There will also be huge benefits data they want at each stage
from BIM in capital delivery, of the project. It’s been left
What is your own including using BIM as a way to the supply side to second
professional experience? of engaging with the water guess what will be required.
How did you become company staff responsible for This isn’t necessarily a criticism
involved with BIM4Water? the operation and maintenance of clients because BIM is new
of an asset. The facilitation of a to our sector and I think the
I’ve been with Galliford Try collaborative approach is central best way that we can solve an
for about three years. Prior to to the benefit of BIM. The use issue such as this is to work
this I worked for Constructing of BIM will not only improve the together as an industry. I would
Excellence – an industry predictability of outcomes – in like to think that this is certainly
improvement organisation which terms of cost, time and quality something that BIM4Water can
was involved in the development of the asset – but also support play a role in because again,
of the initial Government BIM better health and safety and coming back to my point about
strategy. Having moved to environmental performance. standardisation, it would be nice
Galliford Try’s water division, if the requirements from different
I was surprised to see that Within our sector though, there clients were broadly aligned.
there was very little talk about seems to be a view from some
BIM in the water sector. quarters (which needs to be There is also still a huge amount
addressed) is that BIM is more of education to do all the way
With support from David Philp related to capital delivery than through the supply chain. I think
on behalf of the BIM Task asset management. And there we’re still coming up against a
Group, a small number of us are some technical challenges. lack of understanding of BIM in
were able to put together a For instance, I know that a lot of the market and real evidence
BIM4Water group and I was water companies have invested of BIMwash. For example, at
delighted to be asked to chair the quite heavily in recent years in their BIM conferences I often hear
group on inception. The water asset management systems and people say that they’re doing
sector has generally been quite in some cases there is a lack of Level 3 BIM, but that can’t be
forward thinking in adopting understanding regarding how the the case as that hasn’t been
collaborative and integrated data from a BIM process can be properly defined as yet. All
working practices and, with fed into those asset management misinformation such as that does
BIM being an enabler of better systems as seamlessly as possible. is undermine the confidence that
collaborative working, it seemed both supply and demand side
likely that water clients would You’ve mentioned some of organisations have in what BIM
understand the value of BIM. the difficulties facing the can do. This BIMwash can also
water sector with regard be a real issue in procurement.
What advantages can BIM offer to BIM adoption. Are
the water sector, specifically there any other significant Within BIM4Water we have
in its delivery of AMP6? challenges that BIM4Water representation from almost all
is working to overcome? of the water and wastewater
The key benefit of BIM will companies. We’re trying to get
come through the whole life The lack of Employer’s the message out, through our
value that it can help deliver. The Information Requirements from own networks and by working
expectation is that the use of a clients has been a challenge. with organisations such as
BIM process will enable optimum British Water and the Water
decisions to be taken at all stages Quite a few clients have looked industry Forum, regarding not
in the delivery and management at early BIM pilot projects but only the benefits of BIM but
of a built asset with the greatest certainly been rare that the also the reality of where we are
gains, including financial savings, client has come forward at the as a sector and the journey that
coming in asset management outset of the project with a set of we need to go on collectively.
7
FOR over a century the iconic gives us is a new source, while those elements that are
Elan Valley Aqueduct (EVA) the Lickhill intake, which will visible will be housed within a
has channelled water from the take water from the River purpose-built farmer’s barn.
Welsh vales towards the city of Severn at Stourport and
Birmingham, some 73 miles away. pump it into Frankley. The preferred pipeline route
was agreed following two years
A Victorian-era feat of engineering, “It won’t provide an entire of preliminary technical work
the EVA has remained at the duplication of the capacity of and an extensive first round of
forefront of Birmingham’s water the aqueduct but it will give us public consultation. The route -
provision since its opening in 1906. about a third of what we need. which spans communities, road
Indeed, so reliant is Birmingham on Additional flow will come from and rail infrastructure, nature
the historic aqueduct that Severn our existing site at Trimpley, reserves and sites of specific
Trent Water has been unable to where we are making a cross- scientific interest - provides its
close the EVA to accommodate connection to allow Trimpley’s own unique challenges however.
much-needed restoration water to flow into the EVA.
and modernisation works. To be constructed in an open
“Those two sources will give us trench, the one metre wide
Hence, the Birmingham about two thirds of Birmingham’s pipeline will need a 45m
Resilience Project (BRP) - one demand. The remainder will wide working area. Tunnelling
of the greatest engineering come from borehole sources machines will be used at
challenges ever undertaken by around the city, from South particularly sensitive points,
Severn Trent Water. Through Staffs Water’s Barr Beacon while trenchless tunnelling
the BRP an alternate source reservoir, and from an existing methods will be implemented to
of water is to be created to connection to our strategic bypass nearby roads without the
facilitate periods of maintenance. grid into Birmingham. These need for closure. Severn Trent
Birmingham’s water supply will sources will make up the shortfall Water will also liaise with those
be entrusted to this second from Trimpley and Lickhill.” landowners effected to minimise
source for up to 50 days every disruption where possible.
other year, during which the EVA One of 22 potential sites
will be structurally assessed surveyed by Severn Trent Water, Water from the River Trent
and repaired as required. Lickhill was chosen for its depth differs greatly in composition to
of water and geographical its Welsh equivalent however.
To enable this ambitious features, which ensure that the Thus, Frankley water treatment
undertaking, water from the pumping station will remain works must be upgraded and
River Severn will be abstracted above projected flood levels. extended if it is to accommodate
at Lickhill and pumped 16 miles an additional source. Clarification
cross country to a newly built Severn Trent Water will construct tanks are essential to treating raw
treatment plant at the existing a water intake on the river bank, water, while rapid gravity filters,
Frankley water treatment works. alongside a pumping station with chemical dosing facilities
four large pumps, each buried and safe storage for
Simon Hinsley, Severn Trent 15m into solid rock. Once built, substances used will
Water’s Project Manager, the vast majority of the facility all be necessary
explains: “What this solution will be obscured from view,
8
if safe drinking water is are calculated to ensure that Trent Water over the five year
to be guaranteed. there are no adverse effects on lifespan of the project. Ofwat,
the river, its ecology and any the economic regulator for
Furthermore, Severn Trent Water users downstream. As such, the water sector, expects the
is planning a sludge treatment operations will take place in the project to be delivered ahead of
plant which will make safe autumn and winter when river AMP6’s end date - March 2020.
any particles removed from flows are typically higher. Effort
raw water. Though much of will also be made to restore the But it is a necessary undertaking
the development will occupy landscape to its natural state also. Without this intervention
a former brownfield site, the once construction is complete. Birmingham’s water supply is
sludge treatment plant will be left increasingly vulnerable. By
built on land designated as In recognition of the River Trent’s investing in new infrastructure,
Green Belt. Severn Trent Water standing among fishermen, Severn Trent Water is creating
is therefore limiting the height Severn Trent Water will also a more sustainable water
of the facility to no more than collaborate with angling supply for Birmingham and
nine metres, with a view to groups to ensure that high its surrounding communities.
minimising its visual impact. fish populations and cherished A fact to which Liv Garfield,
angling spots are preserved. CEO of Severn Trent Water,
The environment will remain can attest: “We believe this is
a constant consideration The Birmingham Resilience the chance for us to invest in
throughout the BRP. Progress Project is a considerable an asset which has served us
will be monitored closely by undertaking then, both well for the last hundred years
the Environment Agency, while logistically and financially. In and will now serve us well for
abstraction will be permitted total an approximate £242M the next hundred to come.”
only if the river flow remains will be invested by Severn
above the agency’s ‘Hands
Off Flow’ levels. These figures
9
With Weholite
“We have worked with Nomenca and Severn Trent Water for
many years. They have an innovative and forward thinking
approach to project management and were early adopters
of Weholite technology. We look forward to working with
them throughout the ongoing AMP period.”
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