Cwm Taf Scheme - Direct Procurement for Customers (DPC)

Dwr Cymru Cyfyngedig (DCC) / Welsh Water is the largest water and sewerage company in Wales and the sixth largest operating in England and Wales. Responsible for providing high-quality drinking water for over three million customers and for taking away, treating and properly disposing of the wastewater that is produced.

DCC/Welsh Water is committed to securing water supplies for future generations while protecting the environment. Our primary responsibility is to operate, maintain and upgrade this large network of assets to ensure a safe and reliable drinking water supply and to deal effectively with discharges so as to protect the environment.

As part of its Cwm Taf Supply Strategy, DCC/Welsh Water is seeking to progress a major investment project to design and build a new water treatment works and develop an existing water treatment works (the Cwm Taf Scheme). The Cwm Taf Scheme has been designated under Ofwat's Direct Procurement for Customers (DPC) programme. The Cwm Taf Scheme is intended to be delivered primarily on two separate sites, one located in the Merthyr Area of South Wales and one in the Bannau Brycheiniog National Park. The scheme is about to enter a planning application stage following statutory consultation. Further details can be found on our website: https://corporate.dwrcymru.com/en/community/investment-projects/cwm-taf-water-supply-strategy

DCC/Welsh Water is looking to utilise a Competitively Appointed Provider (CAP) through a Design-Build-Finance (DBF) model. The scheme includes design and build of a new water treatment works on a brownfield site at Dan-y-Castell Farm, along with a raw water pumping station at Pontsticill (referred to as the Dan-y-Castell project) and upgrading Llwyn-onn water treatment works (referred to as the Llwyn-onn project). The Cwm Taf Scheme is therefore a two-site project comprising Dan-y-Castell (with an estimated value of £362,000,000 excluding VAT) and Llwyn-onn (with an estimated value of £194,000,000 excluding VAT).

This notice seeks market engagement from suitably qualified parties capable of delivering a secure, sustainable, and value-oriented solution for customers for this major project aligned to DCC/Welsh Water’s Cwm Taf Water Supply Strategy and the sustainable and environmental objectives of the Welsh Assembly Government including but not limited to the Well-being of Future Generations (Wales) Act 2015.

Contract award is envisaged to be August 2028. Milestone dates include DWI Regulatory Completion (envisaged to be March 2032) followed by an estimated 12 month period for testing, and a 25 year term from completion of testing.

All values and dates set out in this preliminary market engagement notice are indicative and reflect current analysis.