A Scottish-English joint venture company has been named as preferred bidder for a £50 million environmental improvement project in the east of Scotland.

Caledonian Environmental Services (CES) - a joint venture between ScottishPower and Northumbrian Water Group - has been chosen by East of Scotland Water for its Levenmouth Purification Scheme.

The 40-year contract will provide waste water and sludge treatment facilities for a population equivalent of 440,000 in the Levenmouth area of Fife. The work is needed to improve the quality of the Forth Estuary and the bathing water between Kelty and Leven in line with the requirements of the EU Urban Waste Water Treatment Directive.

The Board of East of Scotland Water selected the CES submission following a rigorous selection procedure. The CES bid was considered to provide the flexibility of waste water treatment, beneficial re-use of natural resources, environmental sustainability, safety, security and value for money sought by the water authority's board.

The project is being carried out under the Government's private finance initiative (PFI), with CES providing the funding, design, construction and operation of the plants. Last year a ScottishPower-led consortium won a similar contract with West of Scotland Water for its Daldowie and Shieldhall works.

The Levenmouth waste water treatment works will provide secondary and ultra-violet treatment to the water before it is returned to the environment. The sludge will be dried and sent to ScottishPower's Longannet power station where it will be used as a non-fossil fuel.

Commenting on the announcement, Ken Vowles, ScottishPower's Executive Director UK Power operations, said:

"We are delighted to be involved in project that will be of such wide benefit to the community from providing a highly efficient form of waste disposal to helping generate electricity in a sustainable and environmentally friendly way."

Further information:

Colin McSeveny
Group Media Relations Manager     0141 248 8200