Severn Trent Water has launched a second stage of preliminary market engagement for the delivery of the Minworth Strategic Resource Option (SRO), an integral component of the broader Grand Union Canal Transfer (GUCT) scheme.

Valued at an estimated £200M excluding VAT, the project aims to significantly bolster water security in the southeast of England by transferring highly treated recycled water from the Midlands.

The Minworth SRO focuses on the northern section of the wider GUCT initiative, centred on the construction of an Advanced Water Treatment Plant (AWTP) at Severn Trent’s existing Minworth site. This state-of-the-art facility will treat recycled water to a high standard before it is transferred via a 17km underground pipeline to an outfall in the Coventry Canal at Atherstone. From there, the water will be transported along the canal network as part of the GUCT project, which ultimately serves to meet increasing water demand in the Southeast.

Stages of Severn Trent’s Minworth SRO

This announcement follows the initial preliminary market engagement carried out in the summer, with Severn Trent now inviting potential suppliers to participate in one-to-one and deep dive sessions. These sessions are designed to cover a range of topics critical to the project’s success, including delivery models, procurement updates, early contractor involvement, asset and water quality considerations, sustainability and social value, as well as innovation and digital integration.

Severn Trent’s current thinking is that the procurement will be structured around seven lots, allowing for flexible participation by contractors. These lots cover various combinations of the AWTP asset, water quality management and pipeline corridor responsibilities. Interested parties can apply for one or multiple lots depending on their expertise and capacity. Currently, the estimated contract period is projected to run from December 2028 through to December 2030.

The engagement deadline for the current round of preliminary market engagement is set for 28 November.

Severn Trent plans to conduct a third round of market engagement in late 2025, which will finalise the procurement strategy ahead of a formal procurement launch in early 2027.

Distinctly, the Minworth SRO will be delivered in-house by Severn Trent, contrasting with the Grand Union Canal SRO in the south, which Affinity Water is managing through the Direct Procurement for Customers (DPC) process.

The Grand Union Canal Transfer project represents a collaborative effort between Severn Trent Water and Affinity Water, aiming to transport surplus treated wastewater from the Midlands to the increasingly water-stressed southeast. The initiative is a strategic response to long-term water demand challenges, offering a sustainable and innovative pathway to improve regional water resilience. Mott MacDonald and Adams Henry Consulting are aiding in drawing up the development consent order (DCO) application for the scheme.

By constructing the AWTP at Minworth and facilitating the underground transfer of water to the Coventry Canal, Severn Trent is advancing a critical piece of infrastructure that will underpin the success of the wider GUCT programme. The project not only addresses environmental and sustainability objectives but also aligns with broader social value goals, underscoring the company’s commitment to responsible resource management.

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