North Midland Construction will be the main construction delivery partner over AMP7, supported by consultant Stantec UK on design and cost consultant ChandlerKBS.

The deal is expected to be worth around £25m-£45m a year to NMC, equating to up to £225m, while Stantec UK could receive fees over the period of up to £50m.

South West Water may also appoint a second contractor to the alliance, although this process is on hold at present.

Balfour Beatty and Interserve are the present AMP6 H50 alliance partners. Interserve is still working on several legacy energy from waste contracts for South West Water’s parent company Pennon, which blew a hole in the contractor’s balance sheet.

The AMP7 alliance deal is a major coup for NMC, which until now has worked for South West Water only on MEICA-type installation work through its Nomenca business.