Tampa Bay - United States Water production services

Creative design-build-operate (DBO) option provides value, technology and accountability

 

Challenge

Tampa Bay Water is Florida's largest public wholesale water supplier, drawing approximately 632,000 cubic meters/day of water from numerous surface water sources and serving 1.5 million customers. For years, the region relied on groundwater to meet its drinking water needs but needed to reduce groundwater pumping to help the surrounding environment rest and recover.

After many years of studying water supply options, the authority developed a $609 million Master Water Plan to address new water sources. The first phase of the Master Plan concentrates on surface water. Looking for a partner who could deliver highquality drinking water using the most advanced technology on the market and for the best market value, the authority entered into a 15-year design-build-operate (DBO) agreement with a team led by Veolia Water for a 250,000 cubic meters/day regional surface water treatment plant. As part of the March 2000 agreement, Veolia Water carried out the design and construction of the plant and today provides for its day-to-day operation.

The public-private partnership is the second-largest water production DBO contract in the United States.

Veolia Water's solution

The DBO process

Wanting the best available technology for the best market price, the authority selected the cost and time saving benefits of a design-buildoperate option. Such an agreement enabled the water agency to sign a single contract for services with one private-sector team.

Water treatment technology

Veolia Water offered its own patented ACTIFLO™ process, a technology widely used throughout the world and proven particularly advantageous when treating large flow rates with variable raw water quality.

Accountability

The contract was designed so that Veolia Water's financial incentives were linked to performance.

Results

  • The state-of-the-art facility came online in Sept. 2002 on time and on budget.
  • Saving for Tampa Bay Water of $80 million due to the DBO process and private-sector economies of scale.
  • Successful handling of a wide range of flow rates and water quality.
  • Exceeding of stringent of drinking water quality standards set by local, State and Federal agencies.
  • Risk transfer.

Contract facts

Operator: Veolia Water North America

Contract start: March 2000

Contract duration: 15 years with optional five-year renewal

Construction duration: 28 months

Key figures

No. of people served: 1.5 million

Volumes produced: 250,000 cubic meters/day

Client interview

In 2002, Tampa Bay Water won the prestigious award for the best infrastructure project from the National Council for Public- Private Partnerships (NCPPP).

Jerry Maxwell, Tampa Bay Water's General Manager, attributed the success of the project to the design-build team and partnership approach.

"We faced several challenges throughout the project, including a late decision to expand the plant's capacity during construction, but the team effort ultimately made this project a success. Built on time and on budget, Tampa Bay Water now has a plant that serves as the cornerstone of our operations and will generate approximately $80 million in savings over the 15-year partnership."