Best team, best valueThe alliance

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Tough challenges ahead

Improved value for money and further capital efficiency

Investment that is wholly customer focussed

Sustainable and innovative solutions

Deliver outcomes rather than specific output

A different approach higher volume, lower

value projects

TOTEX based investment decisions

Link all investments to Thames Water’s longer-term strategy

Population growth

Climate change

Ageing equipment

Rising energy costs

Affordability for customers Increasing customer

expectations

Retail competition

Financing future plans

A changing environment What needs to be delivered

3

The alliance solution formed 14 May 2013 Best team for the best solutions delivering best value

Thames + 4 entities - two ‘design and build’ consortia, a programme manager and a technology and innovation provider

Design and Build:

» Costain, Veolia Water & Atkins(CVA)

» Skanska MWH Balfour Beatty (SMB)

Programme Manager:

» MWH UK

Technology and Innovation Provider:

» IBM

Board representatives from Thames Water & each member of the alliance

Two non-executives – independent & supply chain

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…. in other words

“We have a significant amount of work to do upgrading our deteriorating infrastructure over the next 25 years and beyond, while keeping customers’ bills affordable. If we are to achieve this a different approach is required.

“That is why we have formed an alliance to deliver our AMP6 programme. This represents a complete transformation in the way we carry out investment. Our focus will be on delivering value, as opposed to just cost-efficiency.  We will take a long-term view, as well as making sure we meet out shorter-term goals.

"By forming this early, two years before the start of the next five-year regulatory period, we stand the best possible chance of delivering the safest, most sustainable and most innovative solutions - those which don't necessarily involve simply pouring concrete.“

 Lawrence GosdenThames Water's asset director

The alliance blue print

Largest alliance in the Water Sector (£2-3bn programme )

Long term potential for 12 years of work, with the ability to innovate and

challenge beyond AMP6

Co-create the AMP6 Business Plan as a joint team in two year ECI phase -

prepare for AMP6 delivery

Move up the value curve incorporating Asset Management capability

Shared and fairly distributed reward and risk

Terms geared to motivate toward out-performance against the Business Plan

Fair and sustainable Terms and Conditions

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The alliance aims and approach

Aims:

The very best in health and safety performance

Satisfied customers

Delivering exceptional value for money

Approach:

Innovative

Collaborative

Sustainable

The qualities that hold us together

A desire to deliver best value to society

Aligned health and safety values and culture

Multi-disciplinary design and build capability

Sound financial standing

Breadth and capability

Experience of establishing and working within collaborative long-term alliances

Complementary behaviours and culture

Proven track record in delivering value through innovation

Able to assess and share opportunities and risk

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Graham Keegan leads the team

Graham has worked within the water industry for over 30 years covering roles in business leadership, project management and engineering

Qualifying as a Civil Engineer from Liverpool University, Graham joined United Utilities (UU), where he spent 25 years. Graham has also held senior roles with Bechtel and was appointed as Chief Operating Officer of the 4D Joint Venture in April 2005

In 2010 Graham joined Costain as the Water Director and has now been appointed as Chief Operating Officer of the alliance

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1. Business Plan Validation Report

2. Engineering Optimisation Plan

3. Programme Optimisation Plan

4. Programme Risks and Opportunities

5. Establishment of Programme Management Systems

6. Scope

1. Identifying Opportunities for Better Customer Outcomes

2. Discovering and Applying New and Innovative Technology

3. Delivering an Innovation Process

4. Turning Data into Management Insight

5. Analytics and Optimisation Capability for the Alliance

1. Alliance Academy Plan

2. Communication Plan

3. Identity and Brand

4. Mobilisation plan (0 to 90 days)

5. Transition Plan (90+ days)

6. Business Systems (BAU)

1. Management of T&Cs of all Contracts

2. Commercial Control Process

3. Creation of Integrated Supply Chain

4. Assurance and Audit Policy

5. Creation and Management of ROI fund

1. Alliance Strategic Plan

2. Alliance Charter and Code of Conduct

3. Stakeholder Relationship Plans

4. Sustainability Plan

5. Early Delivery Project Execution Plans 

6. Critical Success Factors

TBA

The team is up and running…

Work is underway

PR14 scope programme, price and committed efficiencies

Developing optimised programme to scope the scale of opportunities for innovation & efficiency for input into the business plan

Establishing the foundation of a future fit alliance:

Strategic plan

Brand

Governance

Processes

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Best team, best valueThe alliance