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.
Dwr Cymru Welsh Water
Dwr Cymru Welsh Water is one of the 10 regulated water and sewerage companies in England and Wales. The company delivers 900 million liters (237.8 million gallons) of drinking water each day to more than 3 million people living in Wales and adjoining parts of England. The company’s primary responsibility is to ensure a safe and reliable supply of drinking water for its customers and ensure effective treatment of wastewater to protect public health and the natural environment.
Asset financing represents the UK water industry’s single largest cost. Black & Veatch assisted Welsh Water in establishing and implementing its asset management framework to meet PAS 55 standards and link asset management to business planning. Welsh Water’s business model aims to reduce costs while improving service delivery.
Black & Veatch is part of the Asset Management Alliance. The alliance has supported Welsh Water’s quality and capital maintenance programs for water plant upgrades and improvements for the last 15 years, delivering more than $650 million in capital improvements to the system.
The utility’s water distribution network includes 27,000 kilometers (16,777 miles) of water mains, 105 treatment works, 532 pumping stations and 715 service reservoirs. Welsh Water’s wastewater assets include 18,000 kilometers (11,185 miles) of sewers, more than 800 treatment works and 2,000 sewage pumping stations.
Welsh Water achieved a 20 percent reduction in capital expenditures and a 10 percent reduction in operating costs over a 10-year period. This was achieved 15 years after the industry was privatized and incentivized to reduce operational and capital costs.