City of Porvoo Awards €2.88 Million Water Main Construction Contract to Erkkiheikkilä Oy

The City of Porvoo has awarded a €2.88 million contract to Erkkiheikkilä Oy for the construction of a new water main between the city's new limestone filtration plant and the Porvoo city centre water network. The 21-month project involves approximately 5.0 km of pipeline, including a submerged crossing of Lake Veckjärvi.

Introduction

Reliable water infrastructure is essential for communities, ensuring access to clean drinking water and supporting economic development. The City of Porvoo is investing in a new water main to connect its new limestone filtration plant to the city centre water network.

The contract, valued at €2.88 million, has been awarded to Erkkiheikkilä Oy. The 21-month project involves the construction of approximately 5.0 km of 500PE-PN10 water pipeline, including a submerged crossing of Lake Veckjärvi, road crossings, and associated structures.

This investment ensures that Porvoo's residents have access to clean, reliable water from the new filtration plant.

Why This Contract Matters

Water infrastructure is critical for public health and economic development. This project ensures that Porvoo's water supply is secure and reliable for years to come.

This contract matters because it:

• Secures water supply: Connects new filtration plant to the city network
• Infrastructure investment: 5.0 km of new water pipeline
• Significant value: €2.88 million contract
• Challenging construction: Submerged lake crossing
• Long-term benefit: 21-month project
• Price-focused: Price-only evaluation (100%)
• Local SME: Erkkiheikkilä Oy is a small Finnish company
• Strong competition: 8 bids received

Contract Timeline

• Contract award notice published: 20 August 2026 (OJ S 160/2026)
• Previous notice referenced: 7504f70d-8de1-4959-bec4-c974e79ceb5e-01
• Winner chosen: 25 May 2026
• Contract concluded: 15 June 2026
• Coverage start date: 1 July 2026
• Coverage end date: 31 March 2028

Contract Overview

The City of Porvoo conducted an open procedure under the EU Sector Directive for this procurement. The contract covers the construction of a new water main between the limestone filtration plant and the city centre water network.

Key features include:

• Single lot: Water main construction
• Duration: 21 months (1 July 2026 – 31 March 2028)
• Value: €2,875,000.00
• Evaluation: Price only (100%)
• Winner: Erkkiheikkilä Oy
• No subcontracting: Erkkiheikkilä will deliver without subcontracting
• SME winner: Erkkiheikkilä is a small Finnish company

Key Contract Details

Detail	Information
Contracting authority	Porvoon kaupunki (City of Porvoo)
Winning bidder	Erkkiheikkilä Oy
Contract subject	Water main construction (CPV 45000000)
Procedure type	Open procedure
Legal basis	EU Directive 2014/25/EU
Estimated value (EUR)	€5,000,000.00
Awarded value (EUR)	€2,875,000.00
Contract duration	21 Months (1 Jul 2026 – 31 Mar 2028)
Bids received	8
EU funding	None
Covered by GPA	Yes
Evaluation criteria	Price only (100%)
Subcontracting	No
Winner size	Small enterprise (SME)

Project Scope

The contract covers the construction of a new water main for Porvoo's water supply system:

Works Included

• Water pipeline: Approximately 5.0 km of 500PE-PN10 water pipeline
• Route: From Sannaiset to between Hagantie and Vanha Veckjärventie
• Lake crossing: Submerged crossing of Lake Veckjärvi (pipe laid on lake bed)
• Connections: Connections to existing pipelines
• Structures: Equipment wells (ventilation, drainage, air release)
• Road crossings: Crossings of roads managed by the regional development centre (with protective pipework at approximately chainage 900, 2860, and 6190)

Location

• City: Porvoo
• Areas: Sannaiset and Veckjärvi
• Region: Helsinki-Uusimaa (FI1B1)

Project Duration

• Start: 1 July 2026
• Completion: 31 March 2028
• Duration: 21 months

About the Contracting Authority

Porvoon kaupunki (City of Porvoo) is a Finnish city located in the Helsinki-Uusimaa region. The city is responsible for providing essential services to its residents, including water supply and infrastructure. Porvoo's water utility (Porvoon Vesi) manages the city's water supply and distribution network.

About the Winning Company

Erkkiheikkilä Oy is a small Finnish construction company based in Orimattila. The company specialises in civil engineering, pipeline construction, and infrastructure works. Erkkiheikkilä has experience in water pipeline construction and other public infrastructure projects. The company's winning bid of €2,875,000 was significantly below the estimated value of €5,000,000.

Procurement Analysis

• Procedure: An open procedure under the EU Sector Directive was used, applying to water-related activities.
• Competition: Eight bids were received, representing strong competition.
• Evaluation criteria: Price only (100%). The buyer selected the supplier based solely on price, with quality assured through technical specifications.
• Value for money: The winning bid (€2.88 million) was significantly below the estimated value (€5.00 million), a saving of approximately 42%.
• SME winner: Erkkiheikkilä is a small Finnish company, demonstrating SME participation.
• No subcontracting: Erkkiheikkilä will deliver without subcontracting.
• All bids from Finland: Eight bids received from medium-sized tenderers.

Additional Procurement Facts

• The contract is covered by the WTO's Government Procurement Agreement (GPA).
• No EU funds were used for this procurement.
• The procurement was not accelerated.
• No dynamic purchasing system was used.
• No framework agreement was used—this is a direct works contract.
• Eight bids were received.
• No subcontracting was declared.
• Disputes or review requests fall to the Markkinaoikeus (Market Court) in Finland.
• Location: Porvoo, Sannaiset, and Veckjärvi areas.
• Includes submerged lake crossing.

Market & Industry Perspective

The Finnish civil engineering market is competitive, with a mix of large contractors and regional SMEs. Water infrastructure projects are an important source of work for construction companies, particularly in growing regions like Helsinki-Uusimaa.

Key trends in this market include:

• Infrastructure investment: Ongoing investment in water and sewer infrastructure
• SME participation: SMEs compete effectively with larger contractors
• Price focus: Price is a key evaluation criterion
• Specialist expertise: Pipeline construction requires specialist skills
• Regional focus: Local contractors have an advantage

Economic Significance

At €2.88 million, this contract represents a significant investment in Porvoo's water infrastructure. The project will:

• Secure water supply: Connect the new filtration plant to the city network
• Create employment: Jobs for construction workers
• Support local economy: Contract awarded to a small Finnish company
• Improve infrastructure: Modern water supply system

Future Procurement Opportunities

With the contract now in place, future opportunities include:

• Water infrastructure projects: Other water main projects
• Maintenance contracts: Ongoing maintenance
• Other municipal projects: Other infrastructure works
• Re-tender: Future water infrastructure tenders

Opportunities for Suppliers

While this contract is awarded, future opportunities exist for construction companies:

• Other municipal projects: Similar infrastructure works in other Finnish cities
• Subcontracting: Suppliers may find subcontracting opportunities
• Maintenance: Ongoing maintenance of water infrastructure
• Specialist works: Pipeline construction and water works

What Businesses Should Watch

• Other Finnish city water infrastructure tenders
• Changes to Finnish water and construction regulations
• EU water infrastructure funding programmes
• Municipal infrastructure investment plans
• Climate adaptation and water security projects

FinlandTenders Procurement Intelligence

This water main construction contract is a significant infrastructure project for Porvoo. Several features stand out:

• Scale: 5.0 km of water pipeline, 21-month project
• Value for money: Winning bid 42% below estimate
• SME success: Erkkiheikkilä, a small Finnish company, won
• Challenging construction: Submerged lake crossing
• Price focus: Price-only evaluation (100%)

For suppliers, this procurement highlights the importance of:

• Competitive pricing: Price is the sole criterion (100%)
• Technical capability: Meeting technical specifications
• SME credentials: SMEs can compete effectively
• Specialist expertise: Experience in pipeline construction

Supplier Takeaways

• Offer competitive pricing—price is the sole criterion (100%)
• Demonstrate technical capability for pipeline construction
• Monitor other Finnish city infrastructure tenders
• Build expertise in water pipeline construction
• Consider SME status as an advantage
• Develop relationships with municipal buyers

Key Takeaways

• City of Porvoo awarded a €2.88 million water main construction contract to Erkkiheikkilä Oy
• Project: 5.0 km water pipeline from new filtration plant to city centre network
• Includes: Submerged crossing of Lake Veckjärvi, road crossings, equipment wells
• Duration: 21 months (1 July 2026 – 31 March 2028)
• Evaluation: Price only (100%)
• 8 bids received
• SME winner (Erkkiheikkilä Oy)
• Winning bid 42% below estimate

Conclusion

This water main construction contract represents a significant investment in Porvoo's water infrastructure. By awarding the contract to Erkkiheikkilä Oy, a small Finnish company, the City of Porvoo ensures the project is delivered by a capable local contractor while achieving excellent value for money.

The price-only evaluation (100%) reflects the standardised nature of water pipeline construction, with quality assured through technical specifications. The winning bid of €2.88 million, significantly below the estimate of €5.00 million, represents a substantial saving for the city.

As Finnish municipalities continue to invest in water infrastructure, similar opportunities will arise for construction companies with competitive pricing and technical capability.

Frequently Asked Questions

Q: What is the City of Porvoo?

Ans: A Finnish city in the Helsinki-Uusimaa region, responsible for providing essential services including water supply.

Q: What is the value of the contract?

Ans: €2,875,000.00.

Q: Who won the contract?

Ans: Erkkiheikkilä Oy, a small Finnish construction company based in Orimattila.

Q: What is being built?

Ans: A new water main connecting the limestone filtration plant to the Porvoo city centre water network.

Q: How long is the pipeline?

Ans: Approximately 5.0 km of 500PE-PN10 water pipeline.

Q: What are the construction challenges?

Ans: Includes a submerged crossing of Lake Veckjärvi and road crossings.

Q: What were the evaluation criteria?

Ans: Price only (100%).

Q: Is this contract funded by the EU?

Ans: No, the procurement is not financed with EU funds.

Source: EU Official Journal, Contract Award Notice 577454-2026, OJ S 160/2026, published 20 August 2026.