Several major pension providers have invested in a £3bn project to upgrade the water supply across the northwest of England.
Six Local Government Pension Scheme (LGPS) funds* and defined contribution master trust Nest have invested in the Haweswater Aqueduct Resilience Programme through their stakes in infrastructure investment company GLIL.
The Pension Protection Fund (PPF) has invested £60m directly into the project, a deal it described in a statement as a “significant milestone” for its internal investment team.
In addition, annuity providers Just Group and Aviva have provided financing to the project, which will involve a major upgrade to a critical water supply pipeline serving Cumbria, Lancashire, and Greater Manchester. Aviva has invested £200m, while Just has not disclosed the value of its investment.
GLIL co-founded a specialist entity, Cascade Infrastructure, earlier this year alongside asset manager Equitix and Austrian construction company Strabag to invest in the project. It was awarded the upgrade contract this month by the aqueduct’s operator, United Utilities.
Lee Belfield, investment director at GLIL Infrastructure, said: “This is a great example of how international collaboration and the deployment of local capital can deliver positive long-term impact for communities. As a partnership of UK pension funds, money from Manchester and Lancashire, as well as from elsewhere across the country, is powering this investment into the northwest from GLIL.”
Belfield added that the investment “reflects our continued focus on building and investing in UK infrastructure – delivering economic and social benefits across the country, while also delivering the stable, inflation-linked returns that come with infrastructure investment to our members”.
The Haweswater Aqueduct Resilience Programme is the first such development approved by regulator Ofwat to be delivered through a “direct procurement for customers” model, which is designed to ensure competitive tendering for major projects.
The project’s build phase will begin in 2026 and is expected to last nine years, followed by a further 25 years of maintenance.
Backing a ‘nationally significant’ infrastructure asset
The Haweswater aqueduct pipeline was built between 1933 and 1955, and spans 110 kilometres. It delivers water from the Haweswater Reservoir in the Lake District to more than two million people across Cumbria, Lancashire and Greater Manchester.
An investigation by United Utilities that started 20 years ago identified issues with the pipeline, and while some have been addressed, the company said it was clear a bigger upgrade was needed.
Six sections of the pipeline will be upgraded, spanning 52 kilometres in total. The overhaul is designed to protect the pipeline and water supply for decades to come, the operating company said.
Louise Beardmore, chief executive at United Utilities, said the awarding of the contract and the investments marked “a significant step to ensure we have the right infrastructure to provide a resilient water supply to communities right across the region for decades to come”, as well as creating and supporting “hundreds of great quality jobs”.
“Executing this complex deal directly in-house demonstrates the strength of our investment capability and underlines our role as a long-term, responsible investor in the UK economy.”
Neha Dedakia, PPF
The PPF’s investment was carried out solely by its internal investment team.
Neha Dedakia, private credit portfolio manager at the PPF, said: “This investment shows the PPF at its best: delivering strong returns for our members while supporting critical UK infrastructure that millions of people rely on every day.
“Executing this complex deal directly in-house demonstrates the strength of our investment capability and underlines our role as a long-term, responsible investor in the UK economy.”
Just Group’s investment was completed over a period of two years through a strategic infrastructure debt partnership with Global Infrastructure Partners, a subsidiary of BlackRock.
Tim Cannon, a senior investment manager at Just Group, said: “Just is committed to financing nationally significant UK infrastructure that delivers long-term economic, social, and environmental value. Investing in the Haweswater Aqueduct Resilience Programme supports regional development while providing the secure, long-term income to pay our policyholders and delivering lasting value for stakeholders.”
* The LGPS funds include the three members of Local Pensions Partnership – London Pensions Fund Authority, Lancashire County Pension Fund and Royal County of Berkshire Pension Fund – as well as the funds for West Yorkshire, Merseyside and Greater Manchester.
We’re also excited to be working with Equitix and STRABAG to deliver the UK’s first DPC contract.” GLIL, which was established in 2015, is a partnership of UK pension funds.A decade on, the open-ended fund has secured £4.1 billion in committed capital and built a team of more than 30 infrastructure investment professionals. As of 31 December 2024, it has deployed more than £3.2 billion into a portfolio of 14 directly managed assets spanning renewable energy, utilities, ports, logistics, trains, hospitals and schools.GLIL invests on behalf of Local Government Pension Scheme funds and pools including Local Pensions Partnership Investments (comprising Royal County of Berkshire Pension Fund, Lancashire County Pension Fund and London Pensions Fund Authority), Greater Manchester Pension Fund, Merseyside Pension Fund, and West Yorkshire Pension Fund, as well as Nest, the government-established workplace pension provider.Louise Beardmore, Chief Executive at United Utilities, said: “Making the North West stronger, greener and healthier is at the heart of everything we do. Today 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 to come and, at the same time, creating hundreds of great quality jobs and delivering on the commitments and promises we have set out.”
Just Group plc (“Just”), the FTSE 250 retirement specialist, has provided financing for the refurbishment of the Haweswater Aqueduct as part of the Haweswater Aqueduct Resilience Programme (HARP). The proceeds of the transaction, completed in August 2025, will finance part of the estimated construction cost of £3 billion to deliver the project. This financing marks a significant step forward in the renewal of this critical infrastructure asset through strategic collaboration. The investment was completed over a period of two years as part of our strategic infrastructure debt partnership with Global Infrastructure Partners, a part of BlackRock. The existing aqueduct, originally built between 1935 and 1955, delivers drinking water from Cumbria to 2.5m people in Lancashire and Greater Manchester, and requires essential upgrades due to age. It is operated by United Utilities, the UK’s largest listed water company which serves over 7m people across the North West of England. Refurbishment of six tunnel sections will get underway in 2026. The project demonstrates how long-term, institutional investment is being crowded in from major institutional investors, like Just, to deliver tangible public benefits and support the UK’s objectives for sustainable growth and infrastructure renewal. Just is trusted to manage around £28 billion of retirement savings, of which more than £3.6 billion (as at FY 2024) has been invested in dedicated sustainable assets such as renewable energy projects, affordable and social housing, clean transportation, and other social assets. In 2024, Just invested £1.8 billion in productive finance assets. Mohamed Tabi, Director of Credit & Private Assets at Just Group plc, commented: “At Just we help people achieve a better later life – it’s our purpose and why we exist. This is reflected in our role as a major investor in the UK making significant investments in productive finance projects that facilitate economic growth.” Tim Cannon, Senior Investment Manager at Just Group plc, added: “Just is committed to financing nationally significant UK infrastructure that delivers long-term economic, social, and environmental value. Investing in the Haweswater Aqueduct Resilience Programme supports regional development while providing the secure, long-term income to pay our policyholders and delivering lasting value for stakeholders.”
Aviva Investors, the global asset management business of Aviva plc, announces it has provided £200 million of financing towards the design, build and maintenance of the Haweswater Aqueduct Resilience Programme (‘HARP’) in North West England.
The investment has been made by Aviva Investors on behalf of Aviva’s Insurance, Wealth and Retirement (‘IWR’) business, providing up to £200 million of index-linked financing.
HARP is a significant project to undertake essential maintenance across the 110 km Haweswater Aqueduct pipeline, which has supplied water from the Lake District to 2.5 million people across Cumbria, Lancashire, and Greater Manchester for the past sixty years.
The Project will involve replacing six sections of the Aqueduct’s underground tunnels spanning a total of 52 km, which have been identified as requiring replacement to ensure future water quality and supply. With some sections of the pipeline as much as 90 years old, HARP is expected to significantly modernise the Aqueduct, improving its resilience for decades to come.
HARP also represents the first ever project to be approved under Ofwat’s new Direct Procurement for Customers (“DPC”) model, which has been designed for the delivery of large-scale water projects via competitive tenders, with the aim of improving efficiency and value-for-money for customers.
Construction work on the project is currently expected to start in 2026.
It is the latest investment made by Aviva Investors on behalf of Aviva’s IWR business into UK infrastructure. In April, it completed an investment to support construction of two new campus developments at Cardiff and Vale College, whilst in 2022 it provided financing towards construction of the Mynydd Isa campus in Flintshire. Last year Aviva Investors also provided financing towards the development of the new Velindre Cancer Centre in Cardiff, which provides specialist cancer services to over 1.7 million people in South East Wales and beyond.
The investment also adds to Aviva Investors’ presence in the Greater Manchester region, having committed £300 million in 2018 towards the development of Enterprise City in the St John’s neighbourhood of Manchester.
Darryl Murphy, Managing Director, Infrastructure, at Aviva Investors, said:
“We are pleased to support a vital project to reinvigorate the Haweswater Aqueduct pipeline, the backbone of water supply for so many communities across the North West of the UK. We believe this represents a great opportunity to work alongside sponsors with long track records of strong financial performance, alongside a number of other experienced, high-quality counterparties. It is another example of how we are investing into UK infrastructure to help the country get ready for the future, whilst delivering long-term outcomes for our clients and, ultimately, savers.”
Marcus Mollan, Director of Annuity Asset Origination at Aviva, added:
“As one of the UK’s largest investors, we know we can play a significant role supporting new infrastructure and real estate projects across the country that help communities to get ready for the future. The Haweswater Aqueduct plays an important role in delivering water to so many homes and we’re pleased to be able to support its modernisation. This investment reflects our ongoing commitment to the North West and our ambition to drive long-term value and resilience across the region.”
