International Public Partnerships Ltd on Thursday noted the news about the UK government’s contingency plans for the largest water company in the UK, debt-stricken Thames Water.
International Public Partnerships said investee Tideway, the 25 kilometre sewer being built under the river Thames in London, is ‘a completely separate company to Thames Water’.
The London-based infrastructure and business investment firm explained that ‘whilst Thames Water does possess a licence requirement to collect Tideway’s revenues from its customers and pass those amounts to Tideway, statutory and regulatory protections are provided in the event that Thames Water encounters difficulties,’ which include revenue recovery for Tideway and protection for customers.
On Wednesday, the UK government said it is drawing up contingency plans for the emergency nationalisation of Thames Water, which has a £14 billion debt pile. On Tuesday, Sarah Bentley stepped down immediately as chief executive officer.
Thames Water – owned by a consortium of pension funds and sovereign wealth funds – has come under pressure in recent years over its poor performance in tackling leaks and sewage contamination, while facing criticism for handing out big rewards to top bosses and shareholders.
International Public Partnerships shares were 2.2% lower at 131.20 pence each on Thursday morning in London.
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