Thames Tideway Tunnel

House of Lords written question – answered on 25th February 2014.

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Photo of Lord Berkeley Lord Berkeley Labour

To ask Her Majesty’s Government what communications they have had with the European Commission on the need for state aid clearance for the contracts for the Thames Tideway Tunnel.

Photo of Lord de Mauley Lord de Mauley The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs

Thames Water Utilities Ltd is the project sponsor for the Thames Tideway Tunnel, with responsibility for procuring the main Tunnel construction contracts and also the Infrastructure Provider contract if the project is specified in due course under the Water Industry (Specified Infrastructure Projects) (English Undertakers) Regulations 2013, known as the “SIP Regulations”. There are unlikely to be state aid implications from these contracts, as they will be procured by the private sector in accordance with the relevant European legislation.

The Government has said it is willing to provide contingent financial support for the project, the details of which are being discussed between Government departments and Ofwat. As part of this work, Government is in contact with the European Commission to clarify what, if any, state aid implications there might be in providing a financial support package.

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