United Utilities, the UK’s largest listed water company, is making waves with its ambitious £3 billion ($4 billion) Haweswater Aqueduct Resilience Programme (HARP), a project set to redefine water infrastructure in the north of England. This landmark initiative, which will replace 110 kilometers of critical pipeline running from Cumbria through Lancashire to Greater Manchester, is being hailed as a blueprint for resilience, sustainability, and regional growth by both industry and government leaders.
First constructed between 1933 and 1955, the original Haweswater aqueduct has been the backbone of water supply for 2.5 million people across the region. Each day, it delivers a staggering 570 million liters of water—the equivalent of 250 Olympic-sized swimming pools—through a gravity-fed system that has served communities well for nearly a century. But as the infrastructure ages and climate pressures mount, the risks of water loss, contamination, and service disruption have become impossible to ignore.
Enter HARP: United Utilities’ answer to these modern challenges. The company is not just patching up old pipes; it’s embarking on the largest single water infrastructure investment in its history. The project will see six major tunnel sections replaced using advanced tunnelling techniques, a feat that will require both technical prowess and logistical finesse. According to the company, the new tunnel will run alongside the existing one, ensuring that the region’s water supply remains uninterrupted even during construction.
But what sets HARP apart isn’t just its scale—it’s the way it’s being delivered. United Utilities has inked a deal with Cascade Infrastructure, an Austrian-led consortium with deep European tunnelling expertise, to design, build, and maintain the new tunnel. This partnership is the first in the UK water sector to use the Direct Procurement for Customers (DPC) model, introduced by Ofwat in 2019. Under this innovative framework, Cascade Infrastructure is incentivized to deliver the project under budget, with financial risks such as cost overruns shifted away from United Utilities and onto the contractor. As a result, customers are expected to benefit from greater value and cost efficiency—a critical consideration in an era of rising bills and heightened regulatory scrutiny.
The project’s route is no small matter, either. The new tunnel will traverse the districts of Lancaster, Ribble Valley, the Forest of Bowland, Hyndburn, Rossendale, and Bury. Plans even include a marshalling yard near Clitheroe and the A59 to facilitate the unloading of freight trains—a logistical detail that has already sparked debate in the Ribble Valley, where residents are weighing the economic benefits against potential local disruptions.
Louise Beardmore, Chief Executive at United Utilities, underscored the project’s regional significance, stating, “This marks a significant step to ensure we have the right infrastructure to provide a resilient water supply to communities right across the region for decades and, at the same time, creating hundreds of great quality jobs and delivering on the commitments and promises we have set out.”
Indeed, the economic ripple effects are substantial. At its peak, HARP is expected to create more than 1,200 jobs, with a strong focus on apprenticeships and skills development to benefit the local workforce. United Utilities is rolling out virtual exhibitions and community engagement initiatives to keep the public informed and involved—a move that aligns with its broader commitment to building “stronger communities.”
The project’s environmental, social, and governance (ESG) credentials are equally robust. United Utilities has long been recognized for its sustainability leadership, boasting a 67% score in the 2024 S&P Global Corporate Sustainability Assessment and inclusion in the Dow Jones Best-in-Class World Index. Its CDP Climate A rating and MSCI ESG rating of A further cement its status as an environmental steward. HARP will directly support these ESG goals by reducing water leakage, minimizing ecological risks associated with aging concrete, and ensuring compliance with ever-tightening environmental regulations.
Government and regulatory support for HARP has been both vocal and enthusiastic. Water Minister Emma Hardy described it as “one of the largest infrastructure projects ever seen in Britain,” adding, “We are rebuilding the water network from the ground up, through one of the largest infrastructure projects ever seen in Britain. In a new era of partnership between government and industry, we are upgrading pipes, tackling sewage spills and safeguarding water security so communities can, once again, take pride in their rivers, lakes and seas. Investments in projects like Haweswater will be essential in this effort to secure clean water for future generations.”
Andy Burnham, Mayor of Greater Manchester, echoed these sentiments, stating, “The Haweswater Aqueduct has served our region well for decades. This landmark investment ensures it will continue to do so for generations to come. It’s not just about securing the water supplies we need for our city-region to grow. It’s also about creating jobs, skills and delivering long-term value for communities.”
From a regulatory standpoint, Ofwat’s endorsement of the DPC model is a game-changer. Chris Taylor-Dawson, a Senior Officer at Ofwat, remarked, “This is a huge development for the north-west and the programme is the first of its kind for the sector approved by Ofwat. It marks a huge step forward for the water industry as a whole. Safeguarding water resilience for generations to come is vital and HARP sets a new standard for innovation and collaboration. Together we are delivering more than just infrastructure – we are investing in communities, protecting the environment and creating opportunities.”
The financial structure of the project is designed to balance ambition with prudence. The £3 billion investment is substantial, but the DPC model ensures that cost overruns are borne by the contractor, not the company or its customers. Charges under the HARP contract will be recovered from customers via Ofwat’s Allowed Revenue Direction, providing predictable cash flows for United Utilities. This structure shields the company from some of the regulatory and inflationary risks that have historically plagued large infrastructure projects.
Construction is scheduled to begin in 2026, with the new tunnel expected to secure water supplies for generations to come. For investors, HARP is more than just a capital project—it’s a model for how infrastructure modernization can drive both operational resilience and sustainable returns. The project aligns with United Utilities’ long-term ESG strategy, supports regional economic growth, and enjoys strong political and regulatory backing.
As climate change and population growth put increasing pressure on water resources, the Haweswater Aqueduct Resilience Programme stands out as a forward-thinking solution. United Utilities’ commitment to innovation, sustainability, and community engagement offers a compelling vision for the future of the UK’s critical infrastructure. For those watching the water sector, this is one bet that looks set to pay dividends for decades to come.
