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08 June 2006

Mott MacDonald assists Northern Ireland’s Water Service reach financial close on UK’s first water supply PPP project procured under DBFO

Northern Ireland’s water and wastewater service provider, Water Service, reached financial close on project Alpha on 30 May 2006, only 24 months after the original call for competition was published. Project Alpha covers the refurbishment and expansion of four existing water treatment works with a combined capacity of 400 Mld and an initial construction cost of £110 million. Mott MacDonald, as part of a consortium including PricewaterhouseCoopers and Dundas & Wilson, provided technical advisory services to Water Service’s PPP Directorate throughout the development and procurement stages.

This major project will meet approximately 50% of Northern Ireland’s demand for potable water and is the UK’s first public water supply PPP project procured using a design, build, finance and operate (DBFO) model.

Water Service is an Executive Agency within the Department for Regional Development, and has statutory duty for the provision of water and wastewater services in Northern Ireland. The PPP Directorate within Water Service is responsible for the procurement of Project Alpha and awarded the project to Dalriada Water Services Limited, a special purpose company established by Kelda Group, Tyco International Limited and Farrans Limited.

The existing water treatment facilities will continue to be operated by Water Service until 2008, when the upgraded and expanded facilities will be commissioned and brought into service by Dalriada Water Services Limited. Thereafter, Dalriada Water Services Limited will have responsibility for operation and maintenance of the facilities for the remainder of the 25 year contract term.

Mott MacDonald continues to provide technical advisory services to Water Service on Project Omega, another flagship project in Water Service’s PPP programme, which is scheduled to reach financial close later this year. Project Omega includes new build and refurbishment of five wastewater treatment works and wastewater sludge disposal facilities, which will provide final treatment and disposal of all wastewater sludges produced in Northern Ireland.

Speaking at financial close, Mott MacDonald project director Ian Allison, said “We’re delighted to have assisted Water Service in delivering this landmark project, which has reached financial close ahead of what was always viewed as a challenging programme. We look forward to continuing to assist Water Service as Project Alpha moves into the implementation phase to deliver these critical enhancements to Northern Ireland’s potable water services.”


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