PROJECT UPDATE

SEPTEMBER 2015

GEOFF LOADER, HEAD OF STAKEHOLDER ENGAGEMENT

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Background

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Progress over the last 12 months

• Development Consent Order granted (12 September 2014)

• Andy Mitchell appointed Chief Executive Officer (January 2014)

• Main Works preferred tenderers announced (February 2015)

• Licence award granted by Ofwat (August 2015)

• Investors appointed for Bazalgette Tunnel Limited (August 2015)

• Main Works Contractors appointed (August 2015)

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PLANNING AND CONSULTATION

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Consultation and Community Engagement

30Months

development

9,400Responses

during consultation

Over 200meetings attended

114 days of public

exhibitions held

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Route to Development Consent

• Over six years of project development, planningand extensive consultation

• Planning Act 2008

• Public consultation

• DCO application

- 50 separate documents

- 50,000 pages in total, including a 25,000 page Environmental Statement.

- Development Consent granted 12 September 2014

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Received Support for the project

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DELIVERING THE PROJECT

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Delivery model

• Thames Water worked with the Government and Ofwat to consider a range of models to ensure a value for money solution

• A new regulated Infrastructure Provider, Bazalgette Tunnel Limited (BTL), has been formed under the Flood and Water Management Act 2010

• Regulated by Ofwat

• Tendered through a competitive process and will build, manage and maintain the tunnel. Thames Water will operate it

• £1.1bn of investment is from Thames Water, £3.1bn is from BTL

• Licence awarded 24 August 2015.

• Flat bills for Thames Water customers

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Bazalgette Tunnel Limited

The new Infrastructure Provider is the first Wastewater only company in the UK. It is made up of the following shareholders:

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About Tideway

• Bazalgette Tunnel Limited- New, independent regulated water company- First one created in 20 years, 6th largest in the country- Only waste-water-only water company in the country- UK tax based company- Invested funds representing 1.7 million UK pensioners

- Ambition is long-term modest returns- Keen to see

•Highest standards of Health Safety and Wellbeing

•Delivered at demonstrable value for money

•Earning a positive reputation

•As soon as possible

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Main Works Contractors

West Central East System Integrator

All contracts awarded 24 August 2015

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Main Construction Works

WESTLondon Clay

CENTRALLondon Clay/Lambeth Group/Thanets

EASTChalk

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Timetable

2016

Main works preliminary constructionbegins

2017

Tunnelling begins

2021

Tunnelling ends

2022

System commissioning begins

2015

• BTL granted licence by Ofwat

• Main Works contracts awarded

2023

Project completion