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.
Ajman Sewerage Company, Ltd
Ajman Sewerage Company, Ltd
This project enables the Emirate of Ajman, as part of the United Arab Emirates, to replace septic tanks with modern wastewater collection systems and a treatment plant. This was the first integrated wastewater scheme in the Emirate of Ajman to be implemented on a build-operate-transfer (BOT) basis.
Overview
Black & Veatch and Thames Water Aqua International combined to structure this integrated wastewater scheme. This unique financial structure is helping the Emirate of Ajman replace decaying septic systems, and it has eliminated raw sewage in the streets, a critical factor in boosting public health. It also provided the supporting infrastructure for the now-thriving Ajman, one of seven emirates that make up the United Arab Emirates.
This was the first private finance deal to take responsibility for the retail risk – the collection of the tariff from property owners and occupiers – in delivering wastewater services. It was also the first utility project in the Middle East to charge a full cost recovery-based tariff for delivery of wastewater management service
Results
By utilizing creative financing, the Emirate of Ajman now has the infrastructure needed to attract business and build a strong economy while boosting public health.