Severn Trent joint venture wins $1.9B contract from UK Defense Department

A joint venture of Severn Trent and Costain - Coast to Coast Water Ltd. (C2C) - has been awarded a contract by the UK's Ministry of Defense (MOD) to deliver water and wastewater services to about 1,500 MOD sites throughout southeast, east and north England. The 25-year contract known as Project Aquatrine is valued at $1.9 billion...

Dec 16th, 2004

FORT WASHINGTON, PA, Dec. 16, 2004 -- A joint venture of Severn Trent and Costain - Coast to Coast Water Ltd. (C2C) - has been awarded a contract by the United Kingdom's Ministry of Defense (MOD) to deliver water and wastewater services to about 1,500 MOD sites throughout southeast, east and north England. The 25-year contract known as Project Aquatrine is valued at $1.9 billion.

Project Aquatrine is the first major public-private partnership in the UK water sector in which water and wastewater services will be provided for a diverse and widely dispersed area outside of the regulated water industry. The contract calls for the transfer of responsibility for the maintenance and operation of the MOD's water and wastewater assets to the private sector while the MOD concentrates on its core defense activities.

Various forms of public-private partnership for water and wastewater systems are being facilitated throughout the U.S. Severn Trent is a pioneer in this arena, operating facilities under agreements with municipalities at 600 locations. The contract, culminated after years of effort, establishes Severn Trent as a major global participant in the advancement of public-private partnerships.

Ian Andrews, second permanent under-secretary at the Ministry of Defense said: "In signing this agreement we formalize a relationship that has already developed between the Ministry of Defense and Coast to Coast Water Ltd. We look forward to a successful long-term partnership, which will bring private sector expertise and capital into the management of the Department's water and wastewater infrastructure."

Severn Trent Services chief executive, and C2C chairman, Len Graziano stated, "It is a great pleasure and privilege to enter into this agreement that puts the seal on the 25 year contract under which we will deliver water and wastewater services to the Ministry of Defense. The contract sets out the goal to be a mutually beneficial partnering arrangement that delivers important water services in a safe and environmentally responsible way."

Severn Trent is a leading international environmental services company and supplier of water and wastewater treatment solutions, as well as the majority partner in the C2C joint venture. The company is in the vanguard of providing water and wastewater technology, equipment, and services to customers worldwide. Costain is an international engineering and construction group that provides asset management within the water sector.

The operations are scheduled to start in April 2005.

About Severn Trent Services
Severn Trent Services (www.severntrentservices.com) is based in Fort Washington, Pa. The company's broad range of products and services is concentrated around disinfection, instrumentation, and filtration technologies, pipeline analysis, rehabilitation and repair services, contract operating services and state-of-the-art residential metering products and services. Its international management services business provides support in all aspects of water and wastewater utility development and transformation. Severn Trent Services is a member of the Severn Trent Plc group of companies.

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