KfW IPEX-Bank: Financing for landmark water infrastructure project in UK

• Major exports from Strabag/Europe
• Water supply to over 2.5 million customers

KfW IPEX-Bank supports European exports, committing £154m as part of a £3bn financing package for the overhaul of a 70-year-old aqueduct owned by English water supplier United Utilities.

The Haweswater Aqueduct carries 570 million litres of water from Cumbria to Manchester and Lancashire every day, and thus supplies water to nearly 5 per cent of England’s population. The original 110km pipeline - which is approaching its 70th birthday - was a major feat of engineering when it was originally built.

As part of the programme to upgrade and improve the region’s strategic water network, this new contract paves the way for one of the largest water infrastructure programmes across the UK, creating hundreds of jobs in the region.

The programme is the first in the water sector to be delivered through a Direct Procurement for Customers model to provide best value for customers. It covers the design, construction, maintenance and financing of the scheme.

Construction will get underway in 2026 and will see six tunnel sections replaced, with most of the work happening below ground using the latest tunnelling techniques. Strabag AG brings a wealth of experience from similar tunnelling schemes in Europe, partnered by longstanding infrastructure investors Equitix and GLIL Infrastructure.

As well as securing supplies for millions of customers, the project will bring a range of economic benefits to the region. Around 1200 people will be employed at the construction peak with an apprentice recruitment programme to help build and secure skills for the future.

Dr Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank, says: “We are proud to play a prominent role in this landmark transaction for water supply in the UK. With this financing we also underline our strong commitment to supporting the European export industry.”