The iMG approach to asset management and alternative financing, including Public-Private Partnerships (P3s), helps water and wastewater infrastructure projects move forward where they otherwise wouldn’t due to lack of funding. Moreover, our approach can provide rate predictability and stabilization.
infraManagement Group (iMG) is a Black & Veatch company that was born from the recognition of growing budget stress and ratepayer tension that cities and utilities like you are experiencing. iMG combines the technical resources of Black & Veatch with innovative financing solutions for a unique approach to water and wastewater infrastructure delivery.
Your Resource Pool is Only So Big
How can you deliver your capital programs and utility operational improvements when faced with conflicting priorities? The needs are real, the demands are increasing, but the money or resources just aren’t there. What if there were different ways to approach asset management of your utility, as well as the finance of your project and program needs?
The Answer: iMG’s Model
The iMG model can be adapted to your specific needs and utilize the following tools: flexible financing solutions, best-practice asset management, increased efficiency, risk reduction and improved service levels. Additionally, you can leverage the value of your water and wastewater systems to fund other city-wide needs.
The iMG model is built around a Public Private Partnership (P3) concession or performance contracting structure. Financing options can be facilitated through infrastructure funds, pension funds, and/ or public-to-public partnerships.
iMG services include strategic planning, capital planning & prioritization, and operations and management (O&M) assistance and oversight. iMG works in partnership with clients to implement the solutions. We coordinate with financial partners to provide alternative funding resources for capital and/or operational improvement programs.
As an iMG client, we can help you:
- Secure funding sources for new projects or ongoing repair and replacement programs
- Optimize revenue, increase efficiency, reduce risk and improve service levels
- Fund economic development
- Fund resiliency planning, Smart City Initiatives, and/or Green Building initiatives
- Solve funding challenges, including heavy debt, unfunded pension liability, etc.
ASSET LIFE CYCLE MANAGEMENT
Asset life cycle management is a strategic process that results in extending the life cycle of assets and enhancing operations, all while maintaining budgets.
Capital Planning & Prioritization
Our clients have achieved 20 percent or greater reductions in capital costs. The explanation for such dramatic improvements is capital prioritization. Our proprietary capital planning process uses advanced analytics to quantify the likelihood and consequences of asset failure, leading to optimized and defensible capital improvement plans.
Improve facility management with O&M optimization. Our clients have gained 10 percent or greater reduction in operations and maintenance (O&M) costs. We follow and implement proven asset life cycle management models, including using proactive asset management practices like condition assessments, deterioration modeling, and predictive analytics. This way, potential issues don't have a chance to become costly problems.
Alternative Funding Solutions*
Many municipalities face headwinds with funding capital programs. Where will the money come from? The optimal project finance solution frequently blends traditional and alternative capital resources. iMG helps facilitate flexible infrastructure financing solutions that maximize ratepayer and/or investor value.
* iMG is not an SEC registered municipal advisor. Read more.
Community Based Partnership
A Community Based Partnership Model is where a local government or public utility aggregates multiple improvement projects together into single, integrated procurement, creating one point of private sector accountability for linear type projects that support environmental, social and governance goals for a community through-out its lifecycle. It uses a performance-based contract, linking the partner’s payment to specific, measurable goals. The private partner assumes both short and long-term budget and schedule risks, incentivizing best value and a whole life compliance solution. The public sector can also require its private partner to achieve specific Key Performance Indicators to create jobs and engage with minority and women owned enterprises to create resilience solutions that create green space and achieve other community and economic development goals. Additionally, the private partner can also source best fit capital to invest “at risk” portion of development work to provide an earlier start to a program which the government partner can refinance with lower cost of capital upon completion and certification of the projects that make up the program.
Methods For Delivering Infrastructure Management Solutions
Public-private partnerships can provide alternatives for publicly owned utilities seeking funding for capital improvement plans and/or operational improvements. At iMG, we support public-private partnerships that provide the best value-for-money benefit to our clients and their stakeholders. Unique to iMG, we share the risk with our clients to implement the agreed partnership model.
Concession agreements are ideal for public utility operators with major capital improvement needs, limited financing options, and/or staffing challenges. Concessions can also be used to assist in funding economic development and other general fund obligations by realizing the value of existing assets. They typically range from 30 to 50 years in length and involve entering into a partnership with the private sector to manage their water and wastewater systems. The private partner provides the necessary funding, management and technical expertise to deliver utility operations and capital improvement. Under a Concession Agreement, iMG works with the financial partner to deliver utility improvements, manage assets and staff, and deliver the agreed upon level of service for the systems ratepayers.
Performance contracting is frequently the choice of public and investor-owned utility managers seeking to reduce operational costs, find new revenue streams, and identify refinancing opportunities for existing system debt. Performance contracts involve comparing current operations against best practices, developing optimization plans, and then implementing improvements in partnership with clients over an agreed-upon period of time.
Asset Portfolio Management
Primarily used as an offering for funds that own a large number of diverse infrastructure assets, portfolio management helps them realize greater value from their investments. As asset management specialists, iMG applies international best practices for asset management, operational optimization, and capital prioritization planning. Portfolio asset management reduces risk and cost, all while increasing reliability and return on investment.
Learn how asset life cycle management can assist capital planning. Contact iMG for more information.
8400 Ward Parkway
Kansas City, MO 64114
Francesca is a leader in the U.S. water industry with expertise in investments, public-private partnerships and project development. Before joining iMG, McCann served as CEO for Abengoa Water, where she successfully led the $3.4 billion Vista Ridge Project in San Antonio, Texas. McCann also founded a consulting company, Global Water Strategies, and started her water career in 2003, covering the water sector for Wall Street.