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14 June 2011

Mott MacDonald appointed on first Russian PPP water project

Mott MacDonald has been appointed by SUE Vodokanal St Petersburg as technical advisor for the first Russian public private partnership (PPP) water supply project – known as the Neva water project. This PPP includes the design and construction of a new Northern Water Treatment Plant including re-construction of some facilities at the existing plant. The overall objective is to increase the total output of potable water from 600,000 to 800,000m3 per day and to meet the latest Russian and European water quality standards.

Meeting the increasing demand for high quality water in Saint Petersburg, this project will incorporate the latest technology to modernise the original facility constructed 40 years ago. It will be implemented under the St Petersburg PPP Law taking into account objectives set in the Concept of Social and Economic Development of Saint Petersburg up to 2025.

Mott MacDonald’s role includes advising on developing technical requirements for the design, construction and operation of the new facilities as well as confirming technical solutions for the project and water consumption forecasts plus providing an analysis of capital and operational costs. Mott MacDonald’s project team will also develop a strategic social and environmental impact assessment.

The private sector partner - yet to be appointed - will be required to design, build, finance and operate the project facilities for a period of 25 years. It will have an offtake contract with SUE Vodokanal St Petersburg for the supply of potable water under the conditions of the PPP agreement.

Simon Robinson, Mott MacDonald’s project director said, “Mott MacDonald brings a wealth of international water PPP experience to the project. Using a PPP structure means that the preferred bidder will be selected on a whole life cost and quality basis which should in itself drive long term sustainability.”

He added, “Mott MacDonald has worked with Vodokanal on many major projects over the last 15 years and we are pleased to be working with them on this very important project for the City.”

The project is being managed by the Agency for Strategic Investments of the City of Saint-Petersburg and is currently at the Tender Stage. Financial Close on the project is planned for the fourth quarter of 2012. Further details can be found at http://nevawaterproject.asi-spb.ru/

Ends

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