Decision

Thames Tideway Tunnel: government support package contract documents

Documents relating to the project licence awarded by Ofwat to design, build, finance, operate and maintain the Thames Tideway Tunnel.

Documents

Supplemental compensation agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Market disruption facility

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Contingent equity support agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Discontinuation agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Special administration offer agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Shareholders direct agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Liaison agreement

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (eg a screen reader) and need a version of this document in a more accessible format, please email defra.helpline@defra.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Detail

A project licence was awarded to Bazalgette Tunnel Limited on 24 August 2015 by Ofwat to design, build, finance, operate and maintain the Thames Tideway Tunnel.

To help the private sector to finance this project at an appropriate price for customers, the Secretary of State for Environment, Food and Rural Affairs signed a series of contracts with Bazalgette Tunnel Limited. These commit the Secretary of State to provide contingent financial support, in certain specified circumstances, whilst the project is being built.

In addition the Secretary of State, Thames Water Utilities Limited, and Bazalgette Tunnel Limited signed an agreement which establishes a liaison committee to oversee the project’s progress.

All of these are long, detailed, technical legal contract documents.

Government support package

The government support package consists of six core contract documents designed to support the Tunnel project should exceptional, highly unlikely risks happen, which the private sector could not cover at an acceptable cost, or at all. The six core contract documents are:

  • supplemental compensation agreement
  • market disruption facility
  • contingent equity support agreement
  • discontinuation agreement
  • special administration offer agreement
  • shareholders direct agreement

Liaison committee

The liaison committee will oversee the project’s progress. It will consist of representatives from the government (Defra), Thames Water Utilities Limited, and Bazalgette Tunnel Limited. The water industry regulator, Ofwat, and the Environment Agency, will be able to attend as observers. An independent technical adviser will report on the engineering aspects of the construction.