P4 represents a significant development in British Waterways' business activities, which already encompass the property, telecommunications, tourism and water supply sectors.

The joint venture is being put together with Partnerships UK, the Government's public private partnership development vehicle, and will introduce important private sector expertise and capital to the waterways. P4 is expected to be up and running shortly.

Robin Evans, British Waterways' Commercial Director, said: "We are delighted with the response that we have had to the P4 project. The range and quality of the various bidders has been exceptional and underlines our confidence in the enormous commercial potential of this project. The quality and scope of WARP4's proposal is excellent and, we believe, will bring significant income to reinvest in the waterways.

"We have also been especially pleased with WARP4's enthusiasm to embrace British Waterways' commitment - as a public corporation - to develop waterway sites for environmental and social, as well as economic benefits."

John Early, Chairman of AMEC Developments, said: "This is a unique opportunity to create PPP that brings together the individual strengths and skill base of AMEC Developments, Morley's Igloo Regeneration Fund and British Waterways.

Through this partnership we can make a long-term commitment to the enabling and delivery of a substantial programme of waterside regeneration projects".

"The emphasis will be on mixed-use schemes that build upon and enhance the natural attributes of a waterside setting with high quality building design and increased public access to a range of leisure attractions, " said Early.

Mike Gerrard, Head of Projects at Partnerships UK said: "PUK is delighted to have contributed to such a commercially viable public private partnership project to generate value from public sector assets as part of the Government's wider markets initiative."

Lord Whitty, Waterways Minister, welcomed the announcement saying: "We are very pleased with the progress British Waterways is making, and with the evidence of continuing strong private sector interest in Public Private Partnerships. We look forward to completion of the process and the benefits that will accrue to our Inland Waterways".