|
CWR Capital - Private Funding for
Collection System Renewal
CWR provides a
unique Design, Build, Finance (D/B/F) performance-based
contract model for
comprehensive renewal and maintenance of sewer collection
systems.
Collection system
spending, for I/I renewal work in particular, is high-risk
from a financial perspective. It is high-risk
for the
simple fact that the owner needs to pay for the work upfront (on
the belief that the project is cost-effective) but
with no
assurance that the desired results will be achieved and
therefore no assurance that the work in fact cost-effective.
Therefore, 100% of the financial risk is with the owner.
CWR provides owners
with a new alternative. A new alternative to increase system capacity. And a new
alternative for
funding both I/I work and new system capacity.
But a new alternative that utilizes local labor and engineering
as well as
proven products, people and protocols, all while
leaving the owner in control of their asset.
The key value characteristics
of the CWR Capital Program
include:
-
Utilizing local engineers and contractors
-
Optimizing the performance of your collection system...and
maintaining that performance over time
-
Increasing system capacity...the faster and better
alternative to expanding storage or treatment
-
Reducing SSOs/CSOs...whether from blockages or
insufficient peak capacity
-
Paying for results...where payment is based on a
pre-negotiated terms
-
Paying over time...to better match payments with cost
savings and fees and rates
-
Improving transparency and accountability
-
Flexibility to bundle/unbundle services and establish
pricing/terms to meet local needs
The CWR Capital
Program separates and shifts the financial and performance risk
relating to I/I expenditures
away
from taxpayers and provides a "guaranteed cost-effective"
solution for the municipality.
CWR Capital's goal is to mitigate (and hopefully eliminate)
the need for system owners to make speculative capital
investment in collection systems, while
solving the SSO and Basement Backup problems through
rehabilitation of the
collection system in a timely manner.
CWR provides the capital to complete the work and achieve the
target results.
When the actual flow reduction results are
determined, the municipality/taxpayers pay only for actual
results and pay on
pre-negotiated terms. CWR is prepared to
work with each municipality to tailor payment terms to their
respective rate
base and financial circumstances.
Private funding provides the opportunity for taxpayers (whether
through fees, rates, municipal funding, grants, EPA low-
interest loans
and/or other sources) to only pay for success.
The CWR Capital Program -
Additional Information
The CWR Capital Program -
Based on a Proven Renewal
Protocol and Methodology
A group of
collection system experts, who developed
unparalleled experience in identifying
“best in class” renewal
technologies
(including various trenchless technologies),
along with their successful deployment,
approached industry
leaders in the areas
of Construction Materials, Utility
Construction Management, and Private
Funding and together
concluded there is
a better way to renew collection systems. It was soon
evident to the others that the
collection
system experts had developed
a unique and unpublished expertise in
predictably being able to significantly
and
consistently reduce Peak Weather
Flows through their ability to
understand the Scope of the Renewal
Specification
and which Best in Class
Products to employ.
Remarkably, the
flow data post-rehabilitation with their
approach showed a very significant drop
in overall Average
Flows and Dry Weather
Flows as well (meaning the groundwater
table was preserved as well).
Additional data post-
rehabilitation
confirmed that significant capacity was
added to the existing system and
treatment costs were lowered,
ensuring
stable treatment rates for the utility’s
customers.
Confirmation of these
results and confidence that the approach
could be replicated has allowed CWR to
attract the
capital to fund the
initial renewal work on a full-risk
basis, allowing the asset owners and taxpayers to only pay for
actual results.
How Does it Work?
-
Private Funds
are used to initially pay for
analyzing and renewing the collection system in
order to eliminate public
funding
risk associated with uncertain
results
-
Public Funds
are used to pay for actual results,
based on a performance contract,
(i.e. fixed price per gallon
removed), which manages risk for the
municipal utility and maximizes the
City's ROI
-
Collection
system renewal becomes the most
rapid means of addressing
incremental system capacity needs
as well as reducing sanitary
sewer overflows, basement backup
problems and associated health risks
What
are the Benefits of the CWR Capital
Program?
-
No more "risk capital" spent on
speculative I/I reduction
initiatives
-
Pay a known (and relevant) fixed
unit cost for comprehensive
collection system renewal...and only
pay for actual results
-
Eliminate
basement back-ups and SSOs...in 1-4
years
-
Reduce
treatment costs, by reducing the
excess flow (i.e., flow beyond
design spec) in the
collection system
-
Increase
system capacity, by removing excess
flow through comprehensive renewal
-
Defer/cancel
expensive and unnecessary
(capacity-related) capital
expenditures for treatment and
storage
-
Improve permit and
regulatory compliance
-
Stabilize rates
-
Solve the
problem at the
source
CWR is prepared
to provide flexible, structured
payment terms (for as long as 20
years), in order to
optimize the
municipalities cash flow and work
within the respective rate structures and capital and/or
operating budgets.
|
