Portsmouth Water secures £325 million investment for major new reservoir
Portsmouth Water has secured £325 million in investments to construct the first major new reservoir in the UK since the 1980s.
Havant Thicket Reservoir is an environmentally-led project that will play a key role in protecting internationally-rare chalk rivers, by providing additional water supplies and resilience to the South of England. As well as supplying a vital new source of water in the face of climate change and a rapidly growing population, the reservoir will offer a new green leisure facility for the local area. This will include a wetland, visitor centre and network of footpaths, cycle routes and bridleways.
The banks giving their support to the environmentally driven scheme include existing lenders ING, Lloyds Bank, Nat West, abrdn, Assured Guaranty, Pension Insurance Corporation and Siemens Financial Services through Siemens Bank. Portsmouth Water has also secured a £50m commitment from the government-owned bank, the UK Infrastructure Bank, in the first investment of its kind for the sector. This is in addition to the equity commitment of £150m from existing shareholders, Ancala Partners, which was announced last month.
Bob Taylor, Chief Executive Officer for Portsmouth Water, said:
“We are delighted to have secured the £325 million investment required to construct Havant Thicket Reservoir. This will be the first large scale water storage reservoir to be built in the UK since the 1980s.
“It will play a key role in protecting internationally important chalk rivers – the River Test and the River Itchen, by securing a new, sustainable source of water for the region. This is an exciting time for the project. We have recently taken a major step forward in awarding the main reservoir works contract and, with all capital and investment now secured, look forward to work progressing on site.”
In February 2023, Portsmouth Water appointed Future Water MJJV Limited as the main reservoir works contractor in a contract worth £167 million. In addition, the company also announced a new £41 million contract for the construction of a tunnelled pipeline running to and from the reservoir, to be installed by Ward & Burke Construction Limited.
The company was advised on the financing by Centrus and Allen & Overy supported from a legal perspective.