**East of England**: Anglian Water’s £11 billion investment plan for AMP8, approved by Ofwat, will enable the @one Alliance to deliver £2.6 billion in infrastructure projects. Focused on environmental enhancement, this collaboration marks a significant step in transforming water management in the region.
In December, Anglian Water received a significant regulatory approval in the form of the Final Determination from Ofwat, pertaining to its ambitious £11 billion investment plan targeting the East of England for Asset Management Period (AMP) 8, which runs from 2025 to 2030. This investment represents the highest recorded value allocated for a single AMP period by the water company.
As part of this substantial investment, the @one Alliance, a collaboration established by Anglian Water and various partners, is set to deliver capital infrastructure projects valued at £2.6 billion during AMP8. This allocation marks the largest portfolio awarded to the alliance since its inception, dramatically exceeding the previous record of £1.2 billion attained during AMP7.
The @one Alliance was formed in 2004, launching its operations at the start of AMP4 in 2005, thus making Anglian Water a pioneer in adopting an alliancing model within the water sector. The alliance’s project delivery team comprises several key partners, including Anglian Water Asset Delivery, Balfour Beatty, Barhale, Binnies, Mott MacDonald Bentley, MWH Treatment, Skanska, and Sweco, employing over 1,300 professionals in the collective effort.
Ian Hutchinson, managing director of @one Alliance, indicated that Anglian Water’s shift towards an alliancing approach was driven by its dissatisfaction with prior capital delivery performance. Hutchinson noted, “In 2013, Anglian Water recognised that to achieve better performance for the customer and the environment, it had to do things differently.” The alliance is grounded on six core principles designed to enhance outcomes: collaboration, alignment, integrated teams, visible programmes, continuous improvement, and an incentive-based model.
Collaboration has become a cornerstone of the alliance’s operations. Thomas Faulkner, Skanska’s executive vice president, remarked on the transformative nature of the alliance’s approach compared to traditional contractual frameworks, stating that traditionally, “everyone spent the whole time looking backwards, chucking blame at each other.” In contrast, within the @one Alliance, challenges are collaboratively addressed rather than assigned blame, fostering a culture of shared problem-solving.
The integration of teams within the alliance has also been pivotal. Scott Aitken, managing director of Binnies, praised the current level of integration observed on construction sites, noting a significant advancement from the early days when individual partners managed specific projects. This integration extends beyond the alliance to encompass various functions within Anglian Water, creating a more cohesive and capable operational framework.
The focus on integrated teams has facilitated effective knowledge sharing and innovation, both crucial components for the alliance’s success, according to Hutchinson. He highlighted a notable example of health and safety system integration: “As we became more integrated, the obvious next step was to have a single system.” Skanska’s health and safety system was selected as the preferred standard, demonstrating the benefits of sharing best practices across partners.
The commercial model of the alliance fosters an environment wherein all partners share risks and rewards collectively. Aitken noted, “Only everyone can win or everyone can lose,” a principle that promotes continuous collaboration and knowledge sharing. Furthermore, the early involvement of designers and contractors in project planning helps streamline innovation adoption, enhancing overall efficiency.
Anglian Water anticipates that the efficiency improvements attributed to @one Alliance’s collaborative and innovative practices will lead to a £1 billion reduction in the overall costs of its AMP8 business plan. The substantial investment of £2.6 billion is dedicated predominantly to environmental protection and enhancement initiatives within the East of England, addressing key projects such as 145 phosphorous removal schemes, 113 storm tank constructions, and 10 first-time sewerage schemes.
As the alliance gears up for AMP8, it is cognizant of challenges related to supply chain capacity and workforce, particularly in light of the unprecedented investment levels. Hutchinson noted the necessity of growing the supply chain while aiming to maintain operational efficiency without significantly increasing manpower. He articulated the importance of modularisation, standardisation, digital solutions, and effective data use to ensure the alliance’s operational goals are met without friction.
Looking ahead, Hutchinson emphasised the focus on quality amidst the increased demands of AMP8. “We need to make sure that our culture and behaviours and the way we look after our people and our customers remain at the high level that we expect,” he stated, underlining the alliance’s commitment to maintaining its performance standards throughout the forthcoming period.
Source: Noah Wire Services
