KfW IPEX-Bank has committed £154 million to support the overhaul of the Haweswater Aqueduct in England, as part of a broader £3 billion financing package. The aqueduct, which is nearly 70 years old, supplies water from Cumbria to Manchester and Lancashire, serving almost 2.5 million customers—about five percent of England’s population.
The infrastructure upgrade will replace six tunnel sections using advanced tunnelling techniques, with most work occurring underground. Construction is scheduled to begin in 2026. Strabag AG, an experienced European contractor, will lead the construction alongside infrastructure investors Equitix and GLIL Infrastructure.
This project marks the first time a water sector programme in the UK will be delivered through a Direct Procurement for Customers model, intended to provide better value for consumers. The initiative covers all aspects of design, construction, maintenance, and financing.
Economic benefits are expected for the region as around 1,200 jobs will be created at peak construction. An apprentice recruitment programme is also planned to help develop local skills.
Dr Velibor Marjanovic, Member of the Management Board of KfW IPEX-Bank, stated: “We are proud to play a prominent role in this landmark transaction for water supply in the UK. With this financing we also underline our strong commitment to supporting the European export industry.”