International Public Partnerships (INPP), the FTSE 250 listed infrastructure investment company, has released a statement noting the update issued by Tideway earlier this morning. INPP had previously indicated that the Covid-19 pandemic and associated government guidance was likely to have an impact on the overall cost and schedule of the Tideway project.
We note that in July 2015 it was announced that Bazalgette Consortium comprising INPP, Allianz, Amber Infrastructure Group, Dalmore Capital Limited, DIF and Swiss Life Asset Managers were appointed preferred bidder for the Thames Tideway Tunnel (TTT) licence.
The TTT project was commissioned as a new part of the sewer network which would carry sewage and storm water discharges from the broader London sewerage system. The tunnel would be approximately 25km long, 7.2m in diameter, running up to 65 meters below the River Thames.
£233m impact on cost and a nine-month impact on schedule
Tideway has indicated a £233m impact on cost and a nine-month impact on schedule. This translates into the estimated project cost increasing to £4.133bn and the completion date now forecast to occur during the first half of 2025.
Tideway has also indicated that it is in discussions with Ofwat on a package of measures that would mitigate the financial impact of Covid-19 on the company. INPP notes that progress is being made in these discussions and full agreement is expected to be reached in the coming months.
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in 130 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
INPP: International Public Partnerships updates on Covid-19 impact on Tideway project