By turning over water and wastewater treatment to specialists, both private and public customers can focus attention on their core goals

Navigating the complex web of water and wastewater regulations while managing aging infrastructure and the ever-growing demand for clean water presents significant challenges for both public and private entities. Build-Own-Operate (BOO) contracts offer a promising solution by shifting the responsibility for design, construction, operation, and maintenance to specialized private providers.

Traditional Approach to Funding and Its Limitations

In water and wastewater treatment, governments have typically relied on a design-bid-build model, where they assume responsibility for all phases of a project, from planning and design to construction and operation. This method can be problematic because it separates the design and construction phases. This lack of early collaboration between designers and builders can create major headaches and can lead to unexpected cost overruns and disputes later on.

To address these issues, many are turning to BOO contracts.

BOO contracts are long-term infrastructure agreements between a private provider and a customer, which bundle all phases of infrastructure delivery with continuing operations and maintenance (O&M). BOO and similar contracts can be made between a providing company and either a private or public customer.

Besides flexible financing options, BOO contracts hold other advantages for municipalities.

Government agencies sometimes need infrastructure on an emergency basis during a water crisis, but the traditional design-bid-build (DBB) mode is complex and generally slow-moving. It’s hard for residents to wait for water and sanitation while the city government issues bonds or levies a millage. BOO contracts allow for projects to move faster because they streamline the procurement process. In these arrangements, a single entity is responsible for all aspects of the project, from design to construction to operation. This can significantly expedite the timeline for completing a project.

BOO agreements also help prevent problems such as the so-called build-neglect-rebuild cycle. City government may lack organizational resources to maintain today’s technically demanding treatment processes, attract and retain staff, keep an up-to-date inventory of the right parts, and conduct costly repairs. If an asset goes too long without steady maintenance, it can break down and become irreparable. Then, the cost of rebuilding a new plant on an emergency basis dwarfs the cost of steady maintenance. Better to avert the water crisis before it happens.

By transferring the responsibility for operation and maintenance to the private sector, BOO contracts ensure that the infrastructure is properly maintained and that any necessary repairs or upgrades are carried out efficiently and effectively. This reduces the risk of costly breakdowns and the need for expensive emergency repairs, ultimately saving taxpayers money in the long run.

Due to their multiple advantages, governmental bodies have established legal frameworks to standardize and promote BOO arrangements.

BOO Agreements in the Private Sector

BOO contracts can alleviate significant burdens for industrial and commercial operations. For example, today’s regulatory landscape has been evolving, with stricter standards that may include PFAS and other emerging contaminants. Dealing with them can draw an enterprise’s energy and attention away from bread-and-butter operations.

For industrial customers in sectors such as food and beverage, oil and gas, mining, and more, a BOO agreement can also deliver strategic benefits, including:

• Regulatory compliance
• Freed up capital and resources for other pressing matters
• Predictable budgeting
• Relief from the burdens of compliance and O&M (operations and maintenance)

By partnering with Fluence, industrial customers can leverage the latest advancements in water treatment technologies to realize these benefits and more.

Water Management Services

To further simplify water management, Fluence’s Water Management Services offer flexible BOO contracts for water and wastewater projects that ensure seamless regulatory compliance and sustained operational excellence. Fluence finances 100% of the initial CAPEX and the customer pays for the clean water delivered. Fluence is responsible for ensuring that the treated water meets the quality and quantity requirements of the contract.

With decades of experience in the water and wastewater sectors, Fluence’s Water Management Services offers flexible BOO contracts to make water assets possible where they were not financially viable before and to simplify treatment plant maintenance for the customer. Contact Fluence to handle your water and wastewater treatment to never get sidetracked by the frustrating complexities of regulatory compliance again.