South West Water is gearing up to launch procurement for its £1bn Cheddar 2 Reservoir project with early market engagement due to start in September.

The planned scheme will see a new 8,200Ml earth embankment reservoir built next to the existing Cheddar Reservoir, along with a new water treatment facility and 75km of pipeline to deliver water from the Bristol area to customers in Devon.

The project will be delivered through the Direct Procurement for Customers model.

This will see South West Water looking to appoint a consortium to design, build, finance, and potentially operate and maintain the scheme.

The capital value of the works is pegged at around £750m, with total costs, including operation and maintenance, expected to reach £1bn over the 25-year contract.

A launch event to brief potential bidders and investors is scheduled for 9 September 2025 in London.

South West Water said the engagement programme will shape its delivery and commercial model and help align the procurement strategy with market expectations for both contractors and investors.

Tendering is expected to start in July 2027 with a final award due by May 2029.