National Wealth Fund steps in with £300m loan guarantee for major water project

The National Wealth Fund (NWF) has announced a £300 million Credit Enhancement Guarantee for Cascade Infrastructure Ltd. The company, comprising Equitix, GLIL, and the STRABAG Consortium, will be responsible for designing, financing, building, and maintaining the replacement of six tunnel sections along the Haweswater Aqueduct.

Earlier this year, United Utilities, the owner and operator of the original aqueduct, confirmed Equitix and STRABAG Consortium as the preferred bidder. Major construction work on the Haweswater Aqueduct Resilience Programme, known as HARP, is scheduled to begin in 2026. It is set to become one of the most significant water infrastructure projects in the Northwest.

The NWF guarantee has been instrumental in attracting private investment for the project. Six tunnel sections along the 110-kilometre route will be replaced, safeguarding the water supply from the Lake District to millions of residents across Cumbria, Lancashire, and Greater Manchester.

This investment aligns with the NWF’s mission to deploy capital into projects that advance the government’s growth agenda. Water is recognised as one of the key areas of the national infrastructure strategy, and HARP represents a vital step in strengthening regional resilience. The programme will not only secure water supplies but is also expected to create around 1,200 jobs in local communities during the peak of construction.

In addition, HARP will be the first significant project delivered through the Direct Procurement for Customers model. This approach was introduced to ensure that large-scale water infrastructure schemes can be delivered with greater competitiveness and efficiency.

Rachel Reeves, Chancellor of the Exchequer, said:

"This £300 million guarantee from the National Wealth Fund will help secure clean water from the Lake District to millions of residents in Cumbria, Lancashire, and Greater Manchester for generations to come. This shows why I created the National Wealth Fund – to deliver much-needed improvements to infrastructure and results for families in the UK, whilst bringing investment and jobs to local communities – all part of transforming the country through our Plan for Change."

Ian Brown, Interim CEO, National Wealth Fund, said:

"Reliable water infrastructure helps underpin growth and opportunity, as well as being essential to health and wellbeing. That is why we are supporting Cascade Infrastructure with a credit enhancement guarantee for the HARP project, which will safeguard a resilient supply of water for residents across the Northwest, as well as create jobs in the local area. This is another example of the significant role the NWF can play in de-risking transactions, to enable the private sector to deploy the capital required to progress with critical infrastructure projects."

Simon Green, CEO at Cascade Infrastructure, said:

"Reaching financial close on the HARP project marks the beginning of a transformative journey that will deliver vital infrastructure improvements throughout the North West and, importantly, deliver infrastructure fit for the future. This achievement is the result of exceptional collaboration, commitment, and hard work from all our partners involved, combining deep expertise and a shared vision for long-term success. Beyond infrastructure, the project will create jobs, support skills development, and bring lasting economic and social value to the region. We’re proud to be part of this ambitious programme and excited to begin delivery - working together to build a resilient, sustainable future together."