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8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
http://slidepdf.com/reader/full/ch2m-hill-contract-operations-of-water-and-wastewater-facilities-in-the-gulf 1/18
Contract Operations ofWater and Wastewater
Facilities In the Gulf Region
March 3, 2009
Jay Witherspoon
CH2M HILL
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Presentation topics
Trends andDrivers
Public-PrivatePartnership
Options
Benefits of PPPs
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Market trends
Increased emphasis on asset protection practices
Government agencies more willing to outsource to improveefficiency and performance
Public awareness increasing around issues of water scarcity, quality,and conservation
Increased interest in sustainable solutions/technologies
Most utilities being asked “to do more with less”
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Market drivers for partnerships
Public-privatepartnershipsare one Solution
Reasons citedmost by
municipalleaders
Tighteningbudgets
Lack of personneland expertise
Cost
savings
Flexibility andless red tape
Faster implementation
Increasedinnovation
Higher qualityof services
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Partnerships or P3s come in a variety of forms
Asset
Ownership
Build-Own-Operate-
Transfer Concession
or
Lease
Contract
O&M Design-Build-Operate
Design-Build
Private-sector financing,
technology and operation expertise
help ensure safe, efficient, and affordable
water and wastewater
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Partnership vs. privatization
Public sector maintains ownershipof assets
Public sector retains rate-setting
Private firm is responsiblefor staffing and O&M costs
Private sector responsible fornormal repair and replacementof equipment
Public sector handles capitalplanning and replacement
Partnership Privatization
Private sector owns assets
Private sector responsiblefor regulatory compliance
Private sector responsible forrepair and capital replacement
Private sector proposes rateschedule, with approval fromutilities commission
More LessSpan of Public Control
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Status of contract O&M in the region
U.A.E
Oman
Qatar
Saudi Arabia
Bahrain
Kuwait
Eqypt
Country Favorable Undecided Yes No
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Case Study – Abu Dhabi Island Pump Station Project
Fast Facts
Project Type: Contract O&M
Client: Abu Dhabi Sewerage Services Company
Location: Abu Dhabi, UAE
Project Start: 2003
Employees: 36
Population served: 1,000,000
Scope: Operations and Maintenance for a largenetwork of pumping station (51) and infrastructure
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Case Study – SEWA Desalination Project
Fast Facts
Project Type: Design/Build/Commissioning
Client: Sharjah Electricity and Water Authority
Location: Sharjah, UAE
Project Start: 2005
Employees: 10
Scope: Design, Build and Commissioning andstart-up for an 8-mgd seawater reverse osmosis
(SWRO) plant
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Case Study – Kuwait City Wastewater Projects
Fast Facts
Project Type: Rehabilitation and Contract O&M
Client: Kuwait Ministry of Public Works
Location: Kuwait City, Kuwait
Project Start: 1990
Employees: 460
Scope: Rehabilitation of Kuwait City’swastewater system and contract O&M for the
Rekka WWTP and effluent reuse system
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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What we’ve learned:Impacts of contract O&M are positive
50% rate overall satisfaction with the partnership as “extremelysatisfied,” the highest possible ranking; no respondents rate overallsatisfaction as anything less than “satisfied”
92% that projected cost savings achieved those savings; the other8% indicated it was too early in the partnership to tell
93% of respondents noted that involuntary employee turnoverdeclined or remained the same
93% said that employees have more training and professionalgrowth opportunities than they did prior to the partnership
Source: International City Manager’s Survey. 2007
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What we’ve learned:Impacts of contract O&M are positive
64% reported a decrease in employee grievances underthe partnership; none reported an increase
93% noted that private partners proactively participate in community
activities above and beyond what's required intheir contracts
74% rated regulatory compliance as better under the partnershipthan prior to the partnership
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Key ingredients in any successful partnership
Clear understanding of goals and objectives to be achieved
Good understanding of options available
Consensus among decision-makers
Well-defined competition process
Equitable sharing of risks and rewards
Clearly defined performance metrics
A champion to make it work on both sides
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Benefits of public-private partnerships (P3s)
Enhanced career opportunities for employees
Decreased risk liability for government
Environmental stewardship
Lower costs
Improved technology for a cleaner environment
Experience and expertise
8/12/2019 CH2M Hill - Contract Operations of Water and Wastewater Facilities in the Gulf Region
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Thank you!