The asset management plan period was introduced as a result of the privatisation of the water industry in England and Wales.
[1] Water company business plans align with the AMP periods and their investment estimates are used by Ofwat as part of its price review.
[4] The first four asset management plan periods were focused on modernising infrastructure inherited from the public sector to meet strict new European Union limits on acceptable water quality.
[6] The nature of the AMP period model leads to a "boom and bust" cycle of investment repeating every five years.
Businesses supplying design and construction services often lose 40% of their staff in the "winding down" phase of the cycle, many of whom do not return to the sector in the next AMP period.