Whitehall blueprint for Thames Water nationalisation could see state take on bulk of £15bn debt

Exclusive: Project Timber could see some lenders lose up to 40% of their money under the plans

Thames Water could be renationalised with the bulk of its £15.6bn debt added to the public purse under radical plans being considered by the government, the Guardian can reveal.

The blueprint, which is codenamed Project Timber, is being drawn up in Whitehall and would see Britain’s biggest water company turned into a publicly owned arm’s-length body. Some lenders to its core operating company could lose up to 35-40% of their money under the plans.