Insurance organisations back £3bn Haweswater upgrade

Written by Callum Conway

22/08/2025

A coalition of UK insurance and pension investors, and a number of Local Government Pension Schemes, has committed financing to the £3bn refurbishment of the Haweswater Aqueduct Resilience Programme (HARP), marking one of the largest UK infrastructure deals in recent years.

The project will replace six underground tunnel sections of the aqueduct, originally built between 1933 and 1955, which carries drinking water from Cumbria to 2.5 million people across Greater Manchester and Lancashire.

Operated by United Utilities, the upgrade is designed to strengthen the resilience of the UK’s water network for decades to come, with refurbishment due to begin in 2026.

The investment reflects a growing emphasis on channelling pension investment into critical infrastructure, in line with the government’s Mansion House reforms and ambitions to mobilise pensions for growth.

It is also in line with the aims of the Mansion House Accord, launched in May 2025, which saw 17 major providers commit to investing 10 per cent of their defined contribution (DC) default funds in private markets by 2030, with at least half of this allocation ringfenced for UK assets.

In particular, the PPF has invested £60m directly in HARP, a transaction executed entirely in-house, which it highlighted as reinforcement of PPF's role as a long-term responsible investor.

PPF private credit portfolio manager, Neha Dedakia, said the investment reflected “the PPF at its best” by delivering strong returns for members while backing essential UK infrastructure relied on by millions.

She added that completing such a complex deal in-house demonstrated the strength of the fund’s investment capability and reinforced its role as a long-term, responsible investor in the UK economy.

Meanwhile, Just Group provided financing for the project in August 2025 through its infrastructure debt partnership with Global Infrastructure Partners, part of BlackRock.

Just Group senior investment manager, Tim Cannon, emphasised that the firm was committed to “nationally significant UK infrastructure that delivers long-term economic, social, and environmental value”, adding that HARP “supported regional development while providing the secure, long-term income to pay our policyholders and deliver lasting value for stakeholders”.

Aviva Investors has also provided £200m of index-linked financing on behalf of its Insurance, Wealth and Retirement business.

Aviva Investors managing director, Darryl Murphy, described the project as “vital”, and said it represented a “great opportunity” to work alongside sponsors with long track records of strong financial performance, alongside a number of other experienced, high-quality counterparties.

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