Linklaters has advised Thames Water Utilities Limited as a licence has today been granted by Ofwat, the water industry's economic regulator, to Bazalgette Tunnel Limited, a new special-purpose company appointed to take the project forward. Construction of London's new £4.2bn 'super sewer' will start next year following the confirmation of independent investors to finance and deliver the scheme.

The Thames Tideway Tunnel will stem the flows from the 34 'combined sewer overflows' (CSOs) identified by the Environment Agency as the most polluting. The £4.2 billion project will connect up with the Lee Tunnel. Along with Thames Water's recent expansion of the five sewage treatment works on the tidal Thames, the two tunnels will greatly reduce the 39 million tonnes of untreated sewage that currently overflow into the tidal River Thames via CSOs in a typical year.

Bazalgette Tunnel Limited is backed by pension funds and other long-term investors represented by Allianz, Amber Infrastructure Group, Dalmore Capital Limited and DIF. The investor group includes a significant proportion of UK pension funds through which over 1.7 million UK pensioners will have an indirect investment in Tideway. The Consortium's backing fulfills a key component of the HM Treasury's National Infrastructure Plan, designed to finance the development of UK infrastructure with the support of highly experienced private investors.

The Linklaters team advising Thames Water Utilities Limited is led by Projects partner Charlotte Morgan and includes managing associates Louise Stevenson, Skye Kirby, Kristina Shamieva, Barbara Walshe, Andrew Penfold and associates Codie Asimus and Gitanjali Shankar.

Linklaters has advised Thames Water on aspects of the project for more than five years, including the procurement of the infrastructure provider and the development of the regulatory and contractual framework for the design, financing, construction, operation and maintenance of the tunnel.