A group of industry-leading firms today formed an alliance, which will carry out billions of pounds of essential improvements to Thames Water's ageing water and sewerage networks between 2015 and 2025.

The selected organisations signed contracts at the historic Oak Room, Thames Water’s Clerkenwell office at the City of London end of the New River, which this year celebrates its 400th anniversary.

Lawrence Gosden, Thames Water's asset director, said the decision to deliver the AMP6 (2015 to 2020) investment programme using an alliance marked a "complete transformation" in the way the company delivers capital investment.

"The tender process started with an extensive consultation with our supply chain to form a delivery strategy with collaboration at its heart, and it ended with us joining forces with the some of the leading names in the industry," he said.

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"We have a significant amount of work to do upgrading our deteriorating infrastructure over the next 25 years and beyond, while keeping customers’ bills affordable. If we are to achieve this a different approach is required.

"That is why we have formed an alliance to deliver our AMP6 programme. This represents a complete transformation in the way we carry out investment.

"Our focus will be on delivering value, as opposed to just cost-efficiency. We will take a long-term view, as well as making sure we meet our shorter-term goals.

"By forming this early, two years before the start of the next five-year regulatory period, we stand the best possible chance of delivering the safest, most sustainable and most innovative solutions - those which don't necessarily involve simply pouring concrete."

Tim Coles, head of capital procurement for Thames Water, said: "We have procured an option to offer the longest contract term ever awarded by Thames Water.

"Rather than taking a purely commercial and technical approach, we have focused on behaviour by putting our people and our partners’ people through interviews, site visits and workshops.

"This process has reduced the procurement process from up to 18 months to four and has significantly lowered the cost of bidding for the bidders involved."

It will begin work immediately on planning to meet the challenges of the AMP6 work programme.

(CD/MH)