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.