Portsmouth Water confirms £325m funding for UK’s first new reservoir in a generation
Funding has been secured for the new reservoir which will help supply Southern England with enhanced water supplies in the face of escalating climate risks
Portsmouth Water has announced it has secured £325m in funding to construct the first major reservoir in the UK since the 1980s, in a bid to boost climate resilience in the South of England and prevent water shortages as summer droughts become more frequent and severe.
The company said the new Havant Thicket Reservoir would play also play a “key role” in protecting the area’s rare chalk rivers by providing additional water supplies to the South of England.
As well as supplying a “vital” new source of water in the face of escalating climate risks and a rapidly growing population, the reservoir will also offer a new green leisure facility for the local area featuring wetlands, a visitor centre, and a network of footpaths, cycle routes, and bridleways, Portsmouth Water said.
The banks supporting the project include existing lenders ING, Lloyds Bank, NatWest, abrdn, Assured Guaranty, Pension Insurance Corporation, and Siemens Financial Services through Siemens Bank.
In addition, Portsmouth Water said it has also secured a £50m commitment from the government owned bank, the UK Infrastructure Bank, the first of its kind for the sector.
The latest investment follows the equity commitment of £150m which was secured last month from existing shareholders, Ancala Partners.
Bob Taylor, Portsmouth Water’s chief executive said the new reservoir will play a “key role” in protecting the area’s internationally important chalk rivers – the River test and the River Itchen – by securing a new and sustainable source of water for the region.
“This is an exciting time for the project,” he added. “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 £167m. In addition, the company also announced a new £41m contract for the construction of a tunnelled pipeline running to and from the reservoir, to be installed by Ward & Burke Construction Limited.
The project comes as the water industry continues to face fierce criticism from campaign groups over its failure to tackle sewage spills and ramp up investment in climate resilience measures. This week also saw fresh warnings much of the UK is again facing summer drought risks following an abnormally dry winter.
