Scottish Water accepting bids for new water infrastructure enterprise

The £9 billion procurement programme is the largest that Scottish Water has ever undertaken and intends to transform the country’s public assets

The enterprise, known as Delivery Vehicle 4 (DV4), is a part of the SR27 investment programme, which is expected to support 4,000 jobs and create opportunities for 1,500 people.

Its overall value is between £5-9bn, making it the highest-value venture ever undertaken by the company.

Firms are now being invited to bid.

The water infrastructure enterprise will last from 2027-2033

DV4 will replace the current Delivery Vehicle 1, which has been in place for 12 years, and will see investments in assets through high value and complex construction and engineering projects.

The procurement is one contract notice in two parts, with successful participants working with Scottish Water’s teams across Scotland to boost efficient and effective project delivery.

The procurement will also create a network to provide opportunities for SMEs and micro-specialists to collaborate with the main partners in DV4. A regional framework is also planned for SMEs supporting capital and operational requirements.

“The most significant programme of investment we have ever implemented”

Director of Capital Investment, Rob Mustard, said: “DV4 is the most significant programme of investment and way of working we have ever implemented. It supports our goals of financial sustainability, service excellence, and going beyond net zero, all while contributing to a flourishing Scotland.

“We’re moving to an ‘advanced partnering’ model, shifting from traditional contracting to a more collaborative approach. This model brings partners together through agreed outcomes, ensuring we deliver value for our customers and innovation in every project.”

“This supply chain will support over 4000 jobs and create opportunities for over 1500 young people. This initiative is not just about economic growth; it’s about delivering real social value to our communities.”

“The DV4 model represents a significant evolution in how we approach capital investments. It’s designed to drive innovation, efficiency, and sustainability, aligning with our long-term goals of environmental stewardship and community enhancement. We’re eager to partner with others to achieve these ambitions.”

On 24 October a market engagement day took place drawing over 200 delegates from 70 businesses and providing insight into the supply chain.

The procurement process began in earnest on 25 November and is intended to be completed by March 2026.

Scottish Water investing in the future

Earlier this month, Scottish Water also began a search for a partner in their £800m investment programme.

The programme is to develop ceramic membrane plants and will begin from next year until 2033.

The programme will be split into two phases, with phase 1 seeing construction, commissioning, and hand-over of the Turriff Ceramic Membrane Water Treatment Works, and phase 2 will transfer the design, delivery, and commercial commitments to the SR27 investment programme supply chain.

Ceramic membrane has been proven to be effective in water treatment, having been employed at Peebles in 2022.