Costain Group has been chosen by Northumbrian Water Group to undertake its strategic infrastructure upgrade program, which could result in contracts worth up to £670 million ($851.6 million) being awarded over a period of 12 years.
Under the contract, Costain will collaborate with Northumbrian to design, develop, and implement the program. The initial term of the contract is seven years, with an option for a five-year extension.
The scope of the project includes the creation and enhancement of new water and wastewater treatment facilities, as well as the renewal, modification, refurbishment, and expansion of existing assets. Additionally, it will involve investigation and delivery work.
Alex Vaughan, Chief Executive of Costain, expressed his enthusiasm about the contract win, stating, “This achievement not only highlights our growth in the water sector, but it also solidifies our dedication to improving vital infrastructure in the North-East of England.”
The company also announced its anticipation that adjusted operating profit for 2023 will align with market expectations, although no specific figure was provided. In the previous year, Costain reported an adjusted operating profit of GBP36.3 million.