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26/11/2024

Scottish Water Launches £9bn Procurement Initiative

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Scottish Water has unveiled its largest-ever procurement initiative, aiming to modernise the nation's water and wastewater infrastructure while safeguarding the environment.

The program, named Delivery Vehicle 4, is valued between £5 billion and £9 billion and is set to run from 2027 to 2033, with the potential to extend for an additional six years. This marks a groundbreaking shift in how public water and wastewater assets in Scotland are developed and managed, with a focus on innovation and sustainability.

Firms are now being invited to bid for roles in the transformative enterprise, which adopts an enterprise-style approach to infrastructure enhancement. The initiative is designed to ensure the continued reliability of water services and environmental protection for Scotland's communities.
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The Scottish Water SR27 investment program, of which this procurement is a key component, is expected to support approximately 4,000 jobs and provide opportunities for 1,500 young people, contributing to Scotland's broader economic and social goals.

The initiative underscores Scottish Water's commitment to tackling future challenges, including climate change and population growth, while delivering essential services and creating significant economic opportunities.

Director of Capital Investment, Rob Mustard, said the programme would bring significant benefits to communities, the economy and the environment.

He said: "DV4 is the most significant programme of investment and way of working we have ever implemented. It supports our goals of financial sustainability, service excellence, and going beyond net zero, all while contributing to a flourishing Scotland."

Replacing the current 12-year-old Delivery Vehicle 1 (DV1), DV4 will oversee asset investments and handle high-value and complex construction and engineering projects.

The procurement is being advertised as one contract notice in two parts; successful participants will work closely with Scottish Water’s expert teams across the country. The collaborative effort is designed to boost efficient and effective project delivery.

A further network will also be created, providing opportunities for SMEs and micro-specialists to collaborate with the main partners. A regional framework will also be procured consisting of small and medium enterprises, supporting capital and operational requirements.

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