(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has provided £200 million of financing towards the design, build and maintenance of the Haweswater Aqueduct Resilience Programme (‘HARP’) in North West England.
The investment has been made by Aviva Investors on behalf of Aviva’s Insurance, Wealth and Retirement (‘IWR’) business, providing up to £200 million of index-linked financing.
HARP is a significant project to undertake essential maintenance across the 110 km Haweswater Aqueduct pipeline, which has supplied water from the Lake District to 2.5 million people across Cumbria, Lancashire, and Greater Manchester for the past sixty years.
The Project will involve replacing six sections of the Aqueduct’s underground tunnels spanning a total of 52 km, which have been identified as requiring replacement to ensure future water quality and supply. With some sections of the pipeline as much as 90 years old, HARP is expected to significantly modernise the Aqueduct, improving its resilience for decades to come.
HARP also represents the first ever project to be approved under Ofwat’s new Direct Procurement for Customers (“DPC”) model, which has been designed for the delivery of large-scale water projects via competitive tenders, with the aim of improving efficiency and value-for-money for customers.
Construction work on the project is currently expected to start in 2026.
It is the latest investment made by Aviva Investors on behalf of Aviva’s IWR business into UK infrastructure. In April, it completed an investment to support construction of two new campus developments at Cardiff and Vale College, whilst in 2022 it provided financing towards construction of the Mynydd Isa campus in Flintshire. Last year Aviva Investors also provided financing towards the development of the new Velindre Cancer Centre in Cardiff, which provides specialist cancer services to over 1.7 million people in South East Wales and beyond.
The investment also adds to Aviva Investors’ presence in the Greater Manchester region, having committed £300 million in 2018 towards the development of Enterprise City in the St John’s neighbourhood of Manchester.
Darryl Murphy, Managing Director, Infrastructure, at Aviva Investors, said:
"We are pleased to support a vital project to reinvigorate the Haweswater Aqueduct pipeline, the backbone of water supply for so many communities across the North West of the UK. We believe this represents a great opportunity to work alongside sponsors with long track records of strong financial performance, alongside a number of other experienced, high-quality counterparties. It is another example of how we are investing into UK infrastructure to help the country get ready for the future, whilst delivering long-term outcomes for our clients and, ultimately, savers.”
Marcus Mollan, Director of Annuity Asset Origination at Aviva, added:
"As one of the UK’s largest investors, we know we can play a significant role supporting new infrastructure and real estate projects across the country that help communities to get ready for the future. The Haweswater Aqueduct plays an important role in delivering water to so many homes and we’re pleased to be able to support its modernisation. This investment reflects our ongoing commitment to the North West and our ambition to drive long-term value and resilience across the region.”
