It may seem unusual, but when we look at your water system, we consider your pipes and treatment plants to be important yet underleveraged assets. In this new form of public/private partnership, you are able to raise funds for your city by monetizing those assets while retaining ownership and control. You receive an upfront cash payment while maintaining ownership and control of the implementation of added efficiencies and cost savings through the expertise of an experienced operator like American Water. In addition, your city continues to control the water system and set the rates.
The concession model is similar to a long-term lease. The contract might be 20-30 years or longer but is negotiable. During negotiation of the contract, you will determine how the water system will be run and how rates will be set. Once the contract is finalized, your municipality will receive a large infusion of money, which can be used to help address financial constraints for key infrastructure projects or other important city priorities.
For more information, contact Mark Strauss, Senior Vice President of Business Development, at 856-346-8250.