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A water pipeline in the north-west of England is to be modernized by the Austrian company Strabag for up to 3.5 billion euros.

(Bild: APA Pool/APA/HERBERT P. OCZERET)

Strabag is hoping for a water project in Great Britain. In a consortium with the British company Equitix, the company has been selected by United Utilities (UU) as the "preferred bidder" for the modernization of a 110-kilometer water pipeline system in the northwest of England. 

The estimated construction costs amount to 2.5 to 2.9 billion pounds (currently 3.01 billion to 3.49 billion euros), according to a press release from the domestic, listed group.

Decision in the first half of the year
Strabag, or more precisely its subsidiary Strabag UK Limited, hopes to actually be awarded the contract together with UU in the first half of the year. The major project is intended to secure the drinking water supply in Cumbria, Lancashire and Greater Manchester in the north-west of England for future generations.

The major project is intended to secure the drinking water supply in the north-west of England for future generations.

(Bild: stock.adobe.com)

Large parts of the British infrastructure are considered dilapidated and the new government is attempting to "repair" much of it. The local construction company could benefit from this.

Pipeline from the 1950s
Strabag and UU are to carry out the so-called Haweswater Aqueduct Resilience Program (HARP). This is a concession project. The Haweswater Aqueduct is a 110-kilometer-long pipeline that runs from the Lake District through Lancashire to Greater Manchester. Originally built in the 1950s, the pipeline needs to be thoroughly modernized, with the existing tunnel sections being replaced to ensure long-term supply to consumers, according to the Strabag statement. UU provides the wastewater services in the area.

According to Haselsteiner, Strabag is growing steadily in the UK
Strabag CEO Klemens Haselsteiner spoke of several "milestones" already achieved by the UK subsidiary in recent years, coupled with "steady growth". Achieving the new contract would be "an important step in our expansion plans" with the subsidiary.

Achieving the new order would be an important step in our expansion plans with the subsidiary.

Strabag-Chef Klemens Haselsteiner

Bild: STRABAG

The contract comprises the planning, construction, financing and maintenance of six tunnel sections of the pipeline. The construction phase is scheduled to last eight years, followed by a further 25 years of maintenance. Strabag UK Limited will be responsible for the overall design and construction of the project, while Equitix and the Strabag Group will provide the financing.

Strabag worldwide, acquisition in Australia
In the press release on Friday, Haselsteiner also emphasized the activities of his group "worldwide", after there are issues for the company in Russia due to its war against Ukraine, the associated sanctions and around the group shares of the Russian oligarch Oleg Deripaska. Most recently, Strabag also acquired a local company in Australia that is primarily active in road construction - or is awaiting the final approvals for this.