October 2016 Vol. 71 No. 10


PPP Model Addresses Water And Wastewater Industry Challenges

Wastewater Industry ChallengesWhile municipalities still rely heavily on traditional funding mechanisms, receptiveness to new alternatives is growing, according to the 2016 Black & Veatch Strategic Directions: U.S. Water Industry report. One solution is public-private partnerships (PPPs).

“The PPP model can restructure and provide capital to help the utility manage its existing system assets or implement new capital improvement projects,” said Bruce Allender, CEO of Black & Veatch subsidiary infraManagement Group LLC. “Additionally, it allows the transfer of risk from the utility to the private sector while protecting the ratepayer. It provides for the optimization of life-cycle costs and alternative management of these costs.”

The most significant hurdle in broader PPP adoption is the lack of understanding of the model and subsequent uncertainty and distrust.

“By providing education on PPPs, the industry can address funding gaps using life cycle solutions, while addressing the water sector’s biggest concerns,” Allender said.

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