Financing worth £3 billion ( US$4.05 billion ) has been put in place for the Haweswater Aqueduct Resilience Programme in the United Kingdom.

The project is led by the Strabag, Equitix and GLIL Infrastructure consortium, known as Cascade Infrastructure Limited.

Crédit Agricole CIB acted as a financial adviser, mandated lead arranger, and hedge execution bank for the consortium. The transaction also featured Société Générale as mandated lead arranger and hedging provider.

Among the lenders, KfW IPEX-Bank committed £154 million, noting that it is supporting the EU export industry since Austrian construction company Strabag will be a major tunnelling contractor.

The transaction combines long-term and medium-term financing structures and features an innovative risk allocation model between public and private stakeholders. 

The Haweswater Aqueduct, owned and operated by United Utilities, is the UK’s largest potable water pipeline, supplying up to 570 million litres of treated water daily to 2.5 million residents in Greater Manchester, Cumbria, and Lancashire. Built nearly 70 years ago, the 110-kilometre aqueduct is a major engineering feat that uses gravity to deliver water to households.

The project involves one of the largest water infrastructure financings ever undertaken in the UK. It will enable the refurbishment of a vital water supply system, ensuring a reliable supply of clean water for Manchester’s population for decades to come. 

Built in the 1950s, the aqueduct uses a series of tunnels and siphons to transport water from Haweswater in the Lake District to Manchester.

Cascade Infrastructure is experienced in European tunnelling schemes and infrastructure projects. The work will involve replacing six tunnel sections using advanced tunnelling techniques. Construction work is set to begin in 2026.