Severn Trent Launches £25bn Framework Strategy to Build Long-Term Supply Chain Partnerships

Utility begins preparations for one of the UK's largest water infrastructure procurement programmes, with new delivery frameworks spanning three investment periods and creating opportunities across the Midlands.

Severn Trent is preparing to reshape the way it delivers major infrastructure projects, unveiling plans for a new generation of capital delivery frameworks worth up to £25 billion that will support investment across the Midlands for as long as the next 15 years.

The water company is expected to begin procurement in early 2027, following an initial programme of market engagement that will invite contractors, consultants, suppliers and SMEs to help shape one of the UK's largest long-term infrastructure partnerships.

Covering AMP9, AMP10 and AMP11, the frameworks are intended to provide continuity across multiple regulatory investment periods while creating greater certainty for the supply chain.

Moving Beyond Traditional Procurement

Rather than viewing the programme simply as a contract award exercise, Severn Trent says the new model has been designed to foster long-term collaboration, encourage innovation and provide suppliers with the confidence to invest in people, technology and regional capability.

The utility will shortly issue market engagement notices, with interested organisations invited to attend dedicated briefing sessions outlining its future investment pipeline, commercial strategy and procurement approach.

The company hopes the framework will attract both established international contractors and emerging regional businesses, creating a balanced supplier ecosystem capable of delivering increasingly complex infrastructure programmes.

Creating Confidence for the Industry

By providing visibility across three consecutive investment cycles, Severn Trent believes suppliers will be able to make longer-term decisions around recruitment, apprenticeships, manufacturing capacity and digital innovation.

The approach is also expected to encourage earlier contractor involvement during project development, allowing engineering expertise to influence scheme design before construction begins.

The company believes this collaborative model will deliver greater efficiency, resilience and better value throughout the life of the programme.

Platform for Future Investment

Paul Baxter, Capital Delivery Director at Severn Trent, described the initiative as one of the most significant opportunities currently available within the UK infrastructure market.

He said:

"This is a major opportunity for the market to partner with Severn Trent on one of the UK's most ambitious water infrastructure programmes.

"We've achieved strong results with our existing partners, and we're now looking to build on that success through a more integrated and collaborative delivery model that creates better outcomes for customers and communities.

"Through this framework, we are creating a long-term platform that will support delivery across AMP9, AMP10 and AMP11, while providing the flexibility, resilience and innovation needed to meet future challenges."

Supporting Regional Growth

Severn Trent says the programme has been developed not only to improve infrastructure delivery but also to strengthen the wider Midlands economy.

The company wants to create opportunities for organisations of all sizes while supporting local employment, skills development and investment throughout its operating region.

Daniel Foster, Head of Capital Commercial at Severn Trent, said the objective is to establish a supplier network capable of delivering sustained long-term value rather than simply completing individual projects.

He said:

"Our ambition is to create a high-performing supplier ecosystem that combines the strengths of established partners with the innovation and capability of new market entrants.

"The framework will support the AMP8 to AMP9 transition, provide certainty for the supply chain and create opportunities for suppliers to invest in people, skills and innovation over the long term.

"We want this to be more than a procurement exercise. We want to create a platform for collaboration, regional growth and lasting value that delivers benefits for customers, communities and the wider Midlands economy."

Preparing for the Next Generation of Water Infrastructure

The announcement comes as water companies across England prepare for record levels of capital investment aimed at improving environmental performance, increasing resilience to climate change, upgrading ageing assets and accommodating future population growth.

Delivering these ambitions will require deeper collaboration between utilities and their delivery partners, with greater emphasis on innovation, digital engineering and low-carbon construction methods.

Severn Trent believes its new framework model will help create the stable, collaborative environment needed to achieve those objectives while reducing procurement inefficiencies and supporting long-term investment across the supply chain.

With formal tender notices expected shortly, the programme represents one of the largest and most strategically important opportunities currently emerging within the UK water sector, setting the foundation for infrastructure delivery across the Midlands well into the 2040s.