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.
Izmit Water Supply, Izmit, Turkey
Izmit Water Supply, Izmit, Turkey
The Izmit Water Supply project in northern Turkey is the world’s largest privately financed water supply project, and it is the country’s first water build-operate-transfer (BOT) contract. Black & Veatch assisted with obtaining funding for the project.
Overview
Managed by Thames Water and designed by Black & Veatch, the facility serves a population of 600,000, which is expected to increase to 1.6 million by the year 2020. Comprising a dam, a 480 million litres per day water treatment plant, pumping stations and 150km of pipeline, the project took 10 years to complete and cost more than $753 million.
Black & Veatch assisted with obtaining funding for the project, which was financed by loans from Izmit Su AS. The entity is the result of a joint venture between Izmit Municipality, UK-based Thames Water, Turkish contractors Gama Endustri and Guris Insaat, and Mitsui and Sumitomo of Japan.
Designed by Black & Veatch, the process for the water treatment plant follows a conventional flow, comprising aeration, pre-chlorination and chemical treatment. It also encompasses clarification and chlorination, as well as wastewater recovery and sludge treatment.
Results
Black & Veatch can help an organization plan for, finance and set rates appropriately for new projects. By leveraging creative avenues for funding, the project owner was able to deliver on its promise to the public to provide reliable water service.