Thames Water Tideway Tunnel - water industry's biggest ever contract

Photo: Becton Sewage Treatment Works courtesy Thames Water

In an excellent piece of good news to end the year Thames Water has announced that it has let the biggest single construction project, worth £400m, in the UK water industry since privatization 20 years ago.

The contract for the Lee TRunnel is being awarded to MVB – made up of joint venture partners Morgan Est, VINCI Construction Grand Projects and Bachy Soletanche. The four-mile Lee tunnel, costing £600m in total is set for completion in 2014. It will prevent more than 16 million tones of raw sewage overflowing into the River Lee, a tributary of the River Thames.

The news marks a major milestone in finally cleaning up the River Thames and is an important development for the water industry.    

Major decline in Ireland's water quality will drive investment

Ireland’s Environmental Protection Agency in its recently released report found; “a dramatic loss in the percentage of high ecological river sites over the last 20 years”.

One of the key findings was that 30% of Irish rivers were of high ecological status in 1987. By 2008 this had dropped to 17%, located in less densely populated, less developed and less intensively farmed areas.

The suspected causes of this dramatic loss are nutrient inputs, siltation, and acidification associated with activities such as forestry, agriculture and housing development.

Commenting on the findings of the report Dara Lynott, Director, EPA Office of Environmental Enforcement said: The scale of the task of achieving the Water Framework Directive is now becoming clearer. In addition to applying protective measures to those sites assigned high and good ecological status almost 50% of rivers and lake water bodies will require restorative measures; while 40% of estuaries and coastal waters will also need to be restored”

It is clear that the scale of the task facing Ireland to meet the requirements of the Water Framework Directive are huge. This could not have happened at a worse time when Ireland is in a major financial crisis. Justifying the expenditure will be tough but investment is essential to avoid prosecution by the EU and protect the environment.  The broader benefits of environmental investment will need to be recognized – such as job creation and protecting tourism. It will require all parties (EPA, Government, developers, farmers et al) to think creatively and work together to design the innovative solutions that will be required.

Benchmarking the water utilities

Photo: Severn Trent Water

Severn Trent Water was named 2009 Utility Company of the Year last night (Monday 14^th December) at the Utility Industry Achievement Awards ceremony in London.

Tony Wray, Chief Executive of Severn Trent, said: “This national award is the latest milestone on Severn Trent’s journey of continuous improvement. It results from a clear and focused programme in which we drive for ever-higher standards to achieve better levels of customer satisfaction and improve our environmental, financial and regulatory performance.

Ofwat has also announced their view of who are the most efficient water and wastewater companies.  For the water service, the most efficient company, the frontier, is Southern Water, closely followed by Portsmouth, South Staffs and Yorkshire Water. For the sewerage service, Thames Water is the frontier company followed by Wessex Water.

These efficiency assessments are important and undoubtedly drive higher performance and stimulate competition. Its always tricky to ensure that like is being compared with like but the methodology has been extensively refined over the last twenty years and is a valuable tool. Benchmarking is a very powerful methodology to identify scope for improvement and a process all businesses should be using.

Flood and Water Management Bill - will it happen?

Talk of an early election is increasing concern that the important Flood and Water Management Bill will not make it to the statute book in this short final session of Parliament. Tomorrow (15^th Dec) the bill is scheduled to receive its second reading. The Bill is critical to tackling how flooding is managed. It promotes the unified holistic approach to flooding that Sir Michael Pitt saw as being vital.

Photo: Ciria

The big changes incorporated in the bill include a major change to the role of the Environment Agency so that it becomes the overall responsible body for flooding. The local authorities will take responsibility for surface water drainage removing ambiguity as to who is responsible. These are big changes and are critical to ensuring the lessons are learnt from the 2007 flood’s. It should also provide a much needed boast to the use of Sustainable Urban Drainage (SUD) especially in new developments where in future SUD must be consider in developing solutions to surface water run-off.

The blog remains concerned that adequate funding for local authorities to implement the bill has not been provide. It has been assumed that the savings local authorities make in no longer being responsible for private sewers will enable them to fund their new responsibilities. Yet there is still no sign of the enabling regulations needed to ensure the transfer of sewers happens by March 2011. Nor has the cost been included in the Final Determination. Part of the solution lies in Local Authorities becoming more creative and imaginative in how they secure the resources needed and seeking to work in partnership to share scarce resources. It will require one or two highly experienced engineers in each local authority to commission the work not a large department.   

Action needed on water charges

Photo: Walker Review 

The Walker Review on charging for water raises some important questions and challenges for the water industry. Anna Walker said in her conclusions: “while the regulatory regime in the water industry has served customers well over the last twenty years, we now face considerable new challenges”. She went on to say: The biggest issue is the mismatch between how we value water now and how we will need to do so in future”. 

The Walker Review strongly challenges whether the current system of charging is fair. Two particular issues are the high level of charges in the South West, 43% higher than other areas and the high levels of debt.  The report questions why debt in the water industry should be three times higher than in the energy sector, although water bills are a third of energy bills suggesting that something is fundamentally wrong.

The issue of fairness addressed in the Walker Review is crucial to customer’s perception of the water industry. The industry depends on the support of customers to enable future investment. Government and regulators need to find the time and courage to tackle the issues raised in the Walker report soon before they escalate and become bigger and more expensive still. 

Climate Change Conference and its impact on the water industry

Photo: COP15

At the opening of the UN Climate Change Summit today in Copenhagen the Danish Prime Minister in his opening address described the conference: “as an opportunity the world cannot afford to miss” and he went on to say: “a strong and ambitious climate change agreement” was needed.

The main areas for discussion at Copenhagen include:

• Targets to curb greenhouse gas emissions, in particular by developed countries
• Financial support for mitigation of and adaptation to climate change by developing countries
• A carbon trading scheme aimed at ending the destruction of the world's forests by 2030.

With the water industry consuming about 3% of the UK’s electricity and the potential impact of climate change on water supply and flooding the outcome of the summit will have a significant impact on the industry.

The blog’s view is that the work already underway in all water companies to implement a “sustainability agenda” and to adapt to the effects of climate change is critical. While it isn’t clear, at this stage, whether an agreement can be achieved at Copenhagen that’s no reason not to intensify the action to mitigate the possible consequences of climate change.   

First fallout from Final Determination

Photo: Thames Water Beckton STW

Thames Water has announced that its Chief Executive Officer David Owens is to stand down after only three years at the top. The news, coming just four days after the Final Determination was announced combined with the fact that Mr Owens does not apparently have a job to go to suggests there is a link. Thames Water was hit hard in the final determination with Ofwat’s decision to allow prices rises of just 3% on average compared to 17% in Thames Water’s Final Business Plan (FBP).

The gap between the FBP and Ofwat’s view is even larger for some of the water only companies. Bristol Water had asked for price rises of 29% and were granted 7% while Sutton and East Surrey had asked for 27% and got 1% . Some such as United Utilities have actually got a decline in prices over the five year period of 3%.

This mismatch between ask and actuals is not healthy. It does imply that the water companies failed to understand the political reality in which they operate. At a time of recession a price increase of over 25% was never likely to be realistic. It also implies that either the water companies misread Ofwat or that they failed to present a well argued case. Its vital for the health of the water industry that the evident gap between the water companies and Ofwat is closed. Expect more fall out at the top of the water companies in the coming weeks.

Bathing Water quality improves

Photo: Defra

The quality of English and Welsh bathing waters improved in 2009. Results just published by Defra show that 98.6 per cent of beaches meet the mandatory standard up by 2% from last year. The pass rate at the more stringent EC guideline standard was over 10% better at 82.2%.

The improvement was partially the result of the average rainfall in 2009, which contrasted with exceptionally wet weather in 2008, which caused pollution from run off and more frequent use of combined sewer overflows.

Ofwat has allowed £220m of expenditure in the Final Determination to improve sewage works and unsatisfactory overflows affecting bathing beaches. However recent experience on the Flyde Coast has shown that tackling bathing water quality isn’t a simple issue partly due to all the various diffuse sources of pollution.

While the improvement in bathing water quality is welcomed, looking forward bathing waters are likely to become an even more emotive issue over the next couple of years. New standards, that set even more ambitious targets, come into force in 2015. Before that, in 2012, Councils are required to display much more visible and informative signage at bathing beaches. That fact, combined with more people holidaying in the UK, is likely to increase the pressure to improve and ensure bathing water quality remains a high profile area. 

Continuing investment in Scotland

Photo: Scottish Water

The Water Industry Commission has today published its Final Determination for Scottish Water. It challenges Scottish Water to improve its efficiency further and deliver all of the charging and revised investment objectives of the Scottish Government.

Over the five-year period 010-2015 charges will rise by 5% below the rate of inflation. Householders will enjoy a price freeze in the first and probably second year depending on actual inflation. Capital investment will be £2.53 bn an increase of £150m over the draft determination.

The outcome has been welcomed by Scottish Water and underwrites continuing massive investment with the consequent opportunities for suppliers. It bodes well for future prospects.

Ofwat softer stance in Final Determination

The squeeze on prices and investment announced today by Ofwat is a lot softer than feared. The Final Determination reduces prices by £3, after original plans to lower rates by £14. It also allows higher capital investment of £22.1 bn, £1.3 billion more than originally proposed.

It has been generally well received by investors with share prices rising on the news. Additional capital expenditure has been allowed on sewer flooding, another £250m. The stance on the Capital Incentive Scheme (CIS) is now more realistic. The CIS ratios have been reduced and a number are now below 100.

The key now will be to understand the detail of the Final Determination. However it is good news that Ofwat has listened to concerns and the publication today finally brings some certainty to the industry.  

Ofwat final determination due Thursday

Photo: courtesy Northumbrian Water

The expectation in the industry is that Ofwat’s final determination will be only slightly more generous than the draft determination. Ofwat will reveal the outcome on Thursday (26^th  November). Analysts are pessimistic about the impact on water companies suggesting that Northumbrian Water, Severn Trent, United Utilities., Pennon and Thames Water may have to raise capital to cope with the fall in revenue. In a surprising statement Northumbrian Water Group in their half year results issued today indicated that they felt they would be able to maintain their dividend policy of 3% p.a. real growth and have funding secured for the next two years.

The blog is concerned that the uncertainty is having a very negative impact on the supply chain. It wasn’t long ago that the industry was struggling to find the quality of people needed to handle the investment programme. There has always been a dip in demand through the regulatory review period but usually suppliers have been able to move staff to other more buoyant sectors. This time around with the regulatory review period coinciding in Scotland and England and Wales as well as the recession the situation is much more serious. 

Looking forward it is clear that the level of capital investment in AMP5 will be similar or maybe slightly higher than AMP4. In addition Ofwat is suggesting that the water companies need to spend an additional £400m on new flood defences and in light of the Cumbria floods this number will probably increase.  The concern is that the supplier base will have been so decimated by the current lack of work that the people will not be there to cope with the upturn when it comes. The supplier base needs some certainty if it is to pull through.

Cockermouth hit by floods again

Photograph BBC news

It is clear from the breaking news that the floods in Cockermouth have been extremely severe. Environment Secretary Hilary Benn claims they are a one in a thousand year event. Yet only in 2005 the town was also hit by severe flooding and £38m million spent improving flood defenses.

What is undoubted is that the flooding will increase public pressure for further expenditure on flood defense. Its ironic that in October the Cockermouth flood defense team met to approve new expenditure but because of EA funding constraints the work was not scheduled til next June.

The debate about whether the flooding is a really a 1 in a 1000 event or given climate change something much more frequent is highly important. Its easy for politicians to make these statements but once the immediate crisis subsides careful thought and consideration must be given to whether these floods represent a new reality for the UK. 

RWE exits American Water

Image courtesy of American Water

RWE has announced it has sold its remaining 23.6% stake in American Water for $21.63 a share. It was only six years ago that American Water paid $8.6 billion to buy the business at a very high 2.7 times book value. The share sale values American Water at only $3.4 billion meaning that RWE has made a hefty loss on the deal.

The sale marks the end of an era. It was in 2000 that RWE bought Thames Water to create its fourth core segment and make RWE the third largest water utility operator in the world. The acquistion of American Water followed in 2002. Only three years later it decided to start pulling out of water and go back to its core energy business due to its frustration with the slow growth prospects and capital intensive nature of the water industry. RWE did mange to sell Thames Water to Macquarie Bank in 2005 for a profit but overall the diversion into water has been an expensive exercise.

It is surprising how many companies down the years have thought creating a water business by acquisition was a sure fire bet. The ones who have been successful tend to be those who have been patient, willing to grow their business organically and build it on a clear competitive edge. Dow Water and Process Solutions is a good example.   

Thames Water reviews Tideway Tunnel scope

Photo Thames Water

Reports in the New Civil Engineer suggest that Thames Water is reviewing the scope of work for the £2 billion London Tideway Tunnels scheme to reduce costs. Consideration is being given to cutting the length of the 32km Thames Tunnel that currently ends at Beckton Sewage Treatment Works. Instead it would be diverted to join the Lee Tunnel which would then need to be increased in diameter.

Work on the Lee Tunnel is due to start early in 2010 to ensure the work is completed before the Olympics start. Murphy/Hochtief and Morgan Est/Vinci/Bachy Soletanche joint ventures are currently vying for the £430m Lee Tunnel contract.

It is disconcerting to see that the scope of this project has not yet been frozen. Getting the scope right is absolutely essential to delivering the project on budget and time. It is the biggest single project in the water industry and given its location will be under huge public scrutiny. It seems incomprehensible that alternative route options weren’t fully explored at a much earlier point in the project. It does not inspire confidence for stakeholders and especially the general public if on the eve of awarding a £430m contract the most basic aspects of the design have still not been agreed. 

Marine and Coastal Access bill receives Royal Assent

Photo: Defra

The news that the Marine and Coastal Access bill has received assent marks a major milestone in marine conservation. The bill will lead to the establishment of an uninterrupted coastal path and conservation areas.

It also creates a new body called the Marine Management organization (MMO). The MMO is tasked with marine related issues, such as plans for offshore wind farms. The bill also introduces a coordinated approach to coastal and estuary management that aims to simplify the current arrangements.  

This new bill that has been 8 years in evolution while not perfect is a major step forward. Moves to simplify and streamline the management of our coastline are to be welcomed. We all value our leisure time and improving access to the coast will enable more people to enjoy our world beating coastal environment.  But it will mean that our coastal regions will be under increased scrutiny and this may increase pressure to improve. 

United Utilities sells stake in Manila Water

United Utilities (UU) has today announced that it is selling the bulk of its remaining interest in Manila Water to its main Philippine partner Ayala Corp.for $73 million. UU is to continue to provide technical services. UU partially exited Manila Water in 2005 when it sold shares at PHP 6.50 each. The company has made big strides since then and the stock is now trading at PHP16.00.

When United Utilities first became involved Manila Water was in a bad shape, with numerous unregistered connections to an aging infrastructure and water losses of over 65%. It has been a rocky transformation with included a currency crisis in 1997, the El Niño phenomenon in 1998, an arduous arbitration process a little after that, and a myriad of political uncertainties on the national front that increased regulatory pressure on the company.

Now performance has been transformed. Water losses have dropped to 24%, customer numbers have increased by 2 million to about 5 million and the percentage of customers enjoying 24-hour water availability increased from 26% to 99%.

It may not have been an economic success for United Utilities but it is a positive example of the benefits of privatization. All those involved should be congratulated in their efforts to turn the situation round. It is an excellent example of the skills of the UK water industry in transforming the supply of drinking water and sewage and consequently the lives of those in a third world country.

Environment Agency annouce 5 year strategy

The Environment Agency (EA) have just published their 5 year strategy for 2010 onwards. It includes a series of measures aimed at safeguarding from flooding and tackling climate change over the next five years.

The EA plans include protecting an additional 200 000 properties in England and Wales from costal erosion and flooding by 2015.

Plans to protect more homes from flooding are to be welcomed. But is it enough investment? The EA states that over half a million homes are at high risk of flooding from the rivers and seas. Risk is a concept that the general public struggle to understand. If the appropriate level of investment to protect homes are to be made (and justified in a tough economic climate) the industry needs to get better at explaining what high risk really means to the public. 

Increasing competition in Anglian region

Ofwat confirmed today that it proposes to appoint Independent Water Networks (IWN) as water and sewerage supplier for the vast Brooklands development near Milton Keynes. IWN will replace Anglian Water in supplying water services to around 2500 properties mostly households.

IWN will buy a bulk water supply and bulk connection to the sewers from Anglian Water and offer its customers a 5% price discount on their water bills (but not sewage bills). This will be the fourth win for IWN in the Anglian region and helps confirm IWN and its parent the Inexus Group as the market leader in independent utility networks. 

It is by no means clear yet whether the increased competition for Anglian Water is actually a good thing for all water customers. It is very difficult to be sure that the price IWN is paying Anglian really reflects the true cost of the water and sewage service in the locality.  This may not matter while these deals are relatively small but it is a crucial issue as competition grows. 

Climate change talks must include water

This week (Nov 3^rd) saw the UN sponsored Water Day in Barcelona held to bring attention to water as a critical concern for climate change adaptation and mitigation. It is being held as part of the negotiation and preparation leading up to next months UN Convention on Climate Change (COP15) at Copenhagen.

As was highlighted at the Stockholm World Water Week, water is a key medium through which climate change impacts will be felt. Yet the current text of the agenda for COP15 removes any specific reference to water management as part of a climate change adaption strategy.

This should be a concern for all those in the water industry. While the primary focus of the Convention must be on greenhouse gases and mitigation measures. The vital importance of water must not be overlooked.

Changing economic landscape

In a recent article published in the chemicals press and for ICIS Chemicals Business, my colleague Paul Hodges through his excellent blog Chemicals and the Economy shares his view on the changing economic landscape and its implications for companies.

The article looks at the key influences which will shape the chemicals industry as they emerge from the current destocking/restocking phase.  It concludes that the competitive landscape is changing as a result of the downturn, and that companies therefore need to re-position themselves as being either low-cost or solution-oriented.

With the sharp downward pressure on prices coming from the Draft Determination it is essential for suppliers to the water industry to be very clear about the value they provide. Suppliers must demonstrate that they offer the low- cost solution or be able to clearly quantify and articulate the value added if they are to be successful.

Wessex lead OPA league table

Photo: Ofwat
The publication today of the Ofwat Service and Delivery Review for last year will have been keenly awaited by many. Wessex Water are top again closely followed by Anglian and Yorkshire. United Utilities continue to bring up the rear. With the exception of Severn Trent whose performance has improved significantly there has been remarkably little change from last year.

While OPA scores may distort some priorities there can be no doubt that they have been very effective in driving up standards and creating competitive pressure. This has benefited many customers directly and is a good news story that the water companies need to shout about.

Run for water

Its all too easy to take for granted having safe water to drink in our homes and offices but around 1 billion people or one-eight of the population have no access to clean, safe drinking water. Dow Water and Process Solutions have teamed up with Live Earth (backed by Al Gore) and Global Water Challenge to launch the Dow Live Earth Run for Water to raise awareness about and help combat the global water crisis.

Dow's decision to support the "Run for Water' comes on the back of bullish statements from Ian Barbour General Manager Dow Water and Process Solutions. Their strategic intent is to continue to grow their $1 billion business by 12-15% a year primarily through organic growth.

Dow see considerable scope to reduce costs with the drive to achieve a 35% reduction in the cost of water reuse and desalination by 2015 through component technology advances. This implies a significant investment in R & D and a continuation down the cost curve for technologies like membranes.

   

The global event takes place on Sunday April 2010. It includes six kilometre races and walks, plus concerts, in cities around the world (including London of course) to draw attention to the water crisis, promote water conservation and raise money for freshwater projects. Why six kilometres? Because that’s the distance on average people must walk to get water in areas where its not readily available. This bold initiative should be applauded. 

Image courtesy the Dow Live Earth Run for Water

Is trickle flow the answer to rising debt?

The possibility of using introducing trickle flow meters to water customers who don’t pay their debts came a step closer this week with the news that Ofwat backed plans for a review. This idea was first raised in the Walker Review (published in June).

Rising debt is a big issue for water companies with unpaid bills currently over £1 billion and rising fast. It is also a concern for all customers as those who don’t pay add £11 to everyone else’s bills. The problem of rising debt certainly need to be tackled as every £1 sent subsidising debt is £1 less on investment in the water sector.

What message does Victorian water main replacement give?

Walking through Bayswater this weekend the extent of work underway by Thames Water and its contractors to replace London’s aging and leaking water network was very apparent. But the question posed is what message is it intended to convey to the public by this work?

The contractor is to be applauded for clearly labelling the work “Victorian Water Main replacement. The site itself was clearly barriered off but was a ‘sea of tranquillity’ with no work underway. The surrounding streets were a bustle of activity with all the shops open and workmen on another unrelated job resurfacing the road.

Work at this particular Bayswater site has been underway for two months to apparently replace just 50 m of Victorian water main. We all know that modern pipelaying techniques don’t require two months to replace a short length of water main so clearly the scope must be bigger or other problems must have emerged. But what impression of the UK water industry is conveyed to the general public by this apparent inactivity and inefficiency? 

Climate Change Debate Continues

At the forthcoming carbon sequestration conference in London, US Energy Secretary Steven Chu will be speaking about carbon capture and storage (CCS). Mr Chu has talked of 'overwhelming scientific evidence' that carbon emissions from fossil fuels are causing climate changes.

Although most national governments take the same line, sceptics point to the fact that global temperatures have fallen since 1998, which was the warmest year on record.

In Paul Hudson's fascinating BBC blog, the various arguments are spelled out. There are many points of view regarding the causes of global warming (natural vs man-made) and the validity of the various studies.

Very interesting and very pertinent as we approach the Copenhagen summit and the introduction of the various emissions trading bills around the world. To quote Paul Hudson ' The debate about what's causing global warming is far from over. Some would say it's hotting up.'

Cyanide river poisoning highlights importance of contingency planning

The vital importance of effective contingency planning was shown again when news broke last week of cyanide leaking into the River Trent killing thousands of fish. Severn Trent Water were forced to deal with the consequences when the polluted water knocked out sewage treatment at Strongford wastewater treatment works.

The Guardian  reported today that the source of the pollution had been identified and the company concerned Red Industries - ironically a company that specialises in the disposal of hazardous waste - had suspended all sewer discharges. Severn Trent Water had an established contingency plan that enabled newly appointed  Waste Water Services Director Simon Cocks to take prompt effective action to mitigate the impact of the incident 

This incident does highlight the vital importance of contingency planning and well rehearsed emergency procedures. Biological waste water treatment works are of course particularly vulnerable to poisoning. The fact that Severn Trent Water were able to lay on over 200 tanker movements in such a short period of time is a tribute to their effective contingency planning and a salutatory reminder of the importance of thoroughly reviewing potential disaster scenarios and drawing up contingency plans.

Vision for water under threat?

As negotiations over the Final Determination with Ofwat continue ahead of November’s announcement Water UK has claimed that the Government’s excellent water strategy Future Water could be jeopardised by a harsh Final Determination in the current price review.

Pamela Taylor, Water UK Chief Executive was quoted as saying: “Everyone accepts that sustainability requires continuing investment at a high level. But Ofwat’s proposals put financial stability at risk by setting aside the long-term in favour of a short-term approach to prices. Short-term decision making could affect service quality and prove a poor bargin for customers” 

What is clear is that massive investment will continue with Ofwat proposing £21 billion of investment over the next period. There is no doubt that the Final Determination will be challenging for all. But with this level of ongoing investment there must be scope to make significant progress towards the Government’s vision. The challenge will be to ensure that the money is invested sensibly and effectively.

Stable outlook for UK water sector: challenges ahead

The outlook for the water sector is stable, reflecting its resilience despite declining consumption and increasing bad debts over the last 12 months, as well as risk mitigants inherent in the regulatory framework, Moody’s Investor Service said in an industry report just published.

However the sector faces challenges going forward, especially if the draft determinations for prices limits recommended by the Ofwat are implemented, the rating agency added.

Furthermore, Moody's noted that the sector's regulatory framework provides operators with protection against falling demand and bad debts, both of which occurred over the last twelve months. A substantial effects clause is embedded in each water company's licence which allows them to submit a request to review the price limits with a a regulatory period if circumstances beyond prudent management control results in an adverse impact above a minimum materiality threshold.

Moody's view wont come as a surprise to UK water sector professionals. The key question it begs is the extent to which the regulator will listen to the views of the water companies and change its draft determination. 

Challenges facing the water sector

Many of the challenges facing the water industry are clear. Climate change, population growth and the need to mitigate and adapt to these changes are key. Recent droughts and floods have shown the need for a resilient water and sewerage infrastructure. The wet summer has highlighted again the pressures caused by intermittent storm discharges on bathing water quality. The need to developing sustainable, locally sensitive schemes to cope with urban drainage is starting to be accepted.

All these factors mean that the water industry will have to look very different by 2050. This will require forward thinking, innovation and continuing massive investment. It will also mean taking some risks to ensure schemes are both affordable and can adapt to an uncertain future.

Delivering this will require some of the country’s best young graduates to be attracted to work in the water sector. The concern must be that the current pause in the investment cycle, compounded by the economic recession wont allow companies to recruit the most able staff or invest in the training needed.