Spanish construction and engineering groups are positioning themselves for a substantial wave of water-sector procurement in the United Kingdom. Ferrovial, Acciona, Dragados, FCC and specialist engineers including Typsa and Sener are pursuing frameworks, treatment works, desalination schemes and major network projects. The opportunity is being driven by ageing infrastructure, leakage, pollution, climate pressures and investment plans approved by the British government and water companies.
A market shaped by ageing assets and climate pressure
Britain’s water infrastructure combines privately operated utilities with a large backlog of investment. Many installations still date from the Victorian era, while 19% of supplied water is lost through leaks and pipes, a level described as “unacceptably high” by the Environment Agency. Sewage discharges have contributed to pollution in almost all rivers, while changing rainfall patterns are altering how resources must be managed. After more than two months without rain in south-east England this summer, several companies, including Thames Water, imposed consumption restrictions. Thames Water has 18 million customers and faces the threat of nationalisation.
Frameworks create routes into repeated work packages
Several opportunities use framework agreements rather than a single construction contract. Under a framework, a utility appoints a group of suppliers or consortia that can compete for, or receive, later work packages under agreed terms. Ferrovial and MWH Treatment are one of two proposals admitted to Anglian Water’s €1.75bn framework, covering network resilience, new capacity and coastal-water improvements. Ferrovial has also started the €102m renovation of the Slough wastewater treatment plant for Thames Water. East South Water has separately tendered a €1.575bn framework for repairing and renewing its networks.
Desalination and treatment are attracting new entrants
Acciona has returned to the UK water segment after winning the €465m redevelopment of the Coppermills treatment plant, which supplies a third of London’s water. It has also joined Typsa and Stantec on a £2bn, or €2.3bn, Anglian Water scheme to design and build two desalination plants. The procurement shows how international firms can enter through different roles: as a lead contractor, consortium member or subcontractor. Typsa joined the desalination plan in January, while Sener is involved in several tenders after participating in the Harp competition.
Large competitions are drawing international consortia
The €3.4bn Harp aqueduct, extending 109 kilometres north of Manchester, illustrates the scale of competition. Two of its three finalist consortia included Spanish participants: Acciona, Dragados and Iridium in one bid, and FCC Construcción, SNC-Lavalin, Aqualia, Webuild and BeMo in another. The contract was awarded last year to Strabag and Equitix. Dragados is now watching forthcoming tenders after having no water contract in its current portfolio, while FCC is assessing possible entry through reversible hydroelectric plants and treatment facilities for Thames Water. Government plans amount to £104bn for the rest of the decade, with the regulator identifying £290bn of needs to mid-century.
| Project or opportunity | Value or scale |
|---|---|
| UK water investment plan for the rest of the decade | £104bn (€121.25bn) |
| Long-term needs identified by the regulator | £290bn (€338bn) to mid-century |
| Anglian Water framework involving Ferrovial and MWH Treatment | €1.75bn |
| Coppermills treatment plant redevelopment | €465m |
| Anglian Water desalination scheme | £2bn (€2.3bn) |
| Harp aqueduct | 109 kilometres; €3.4bn |
“The future is in water,” said FCC Construcción’s director for Europe, Alcibíades López.
WHY IT MATTERS
The UK water market demonstrates how large public-service infrastructure programmes can reach suppliers through private utility procurement. Frameworks, consortium bids and subcontracting offer different routes to participate, while treatment, network renewal, desalination and resilience projects create opportunities beyond a single flagship contract.
Reported from expansion.com, 2026-09-21. The Tender Wire is published by Otnox.
