Crédit Agricole CIB closes landmark advisory and financing for the Haweswater Aqueduct Resilience Programme (HARP)

HARP is a first-of-its-kind project that will refurbish the Haweswater Aqueduct, a critical piece of national infrastructure supplying clean water to 2.5 million people across Cumbria, Greater Manchester and Lancashire. It is the largest water infrastructure scheme to be delivered in the North West with an estimated construction cost of circa £3bn. Built in the 1950s, the aqueduct uses a series of tunnels and siphons to transport water by gravity from Haweswater in the Lake District to Manchester.
Procured under Ofwat’s Direct Procurement for Customers (“DPC”) framework*, the project introduces innovation and competition into the delivery of major water schemes in England and Wales. The transaction combines long-term and medium-term financing structures and features an innovative risk allocation model between public and private stakeholders. 

HARP represents one of the largest water infrastructure financings ever undertaken in the UK. It will enable the refurbishment of a vital water supply system, ensuring a reliable supply of clean water for Manchester’s population for decades to come, and contributing to public health, environmental sustainability, and economic confidence. 
As independent financial adviser, Crédit Agricole CIB supported Cascade from the outset, providing strategic guidance on risk allocation, procurement, and the creation of a robust and bankable financing platform. In its role as Mandated Lead Arranger, the Bank delivered long-term debt financing to fund construction. In addition, Crédit Agricole CIB acted as Hedge Execution Bank, managing interest rate risks.

* Direct procurement for customers (DPC) involves a water or wastewater company competitively tendering for services in relation to the delivery of certain major projects, resulting in the selection of a third-party competitively appointed provider (CAP). DPC will result in water companies competitively procuring more aspects of an infrastructure project, including financing for the project. (source: Direct Procurement for Customers (DPC) - Ofwat)