Thames Water Services

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• Thames Water Services
• Masterclass -
• Sustainable Utilities

INTA 30 World UrbanDevelopment Congress 10th
October 2006
Neil ParkerRegional Director Neil.parker_at_thameswa
ter.co.uk
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Content

• Thames Water Services
• The multi-utility offer
• Responding to change
• The multi-utility joint venture approach
• Operating model

• Financial benefits
• Introducing sustainable solutions
• Our growing experience
• The challenges ahead
• Summary

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Customers, markets, projects partners

• Major customers
• Scottish Water
• Dwr Cymru Cyfyngedig
• Northern Ireland Water Service
• Ministry of Defence
• Key markets
• Water Infrastructure outsourcing
• Capital, maintenance operation
• Services
• Multi-utility solutions
• Installations
• Financing, operating revenue collection

• Key projects
• Water/wastewater infrastructure PFIs
• Almond Valley, Seafield Esk (Edinburgh)
• Project Omega (Belfast)
• Nevis Water (Scotland)
• Multi-utility solutions
• Allenby Connaught (SE England)
• Dartford Bridge (SE London)
• Ebbsfleet Valley (SE London)
• Partners include
• MJ Gleeson, Edf Energy, Laing ORourke

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Multi-utility installations

• Thames Water Services offer an integrated
  approach to utility provision, with a single
  point of contact
• Liaison with the house builder, architect and
  consultants for requirements
• A project-managed installation service (water,
  gas, electric, BT, CATV)
• Flexible, Non statutory workforce
• Commercial offer
• Work is competitively tendered
• Cost saving to Developer on upfront contribution
• Co-ordinated multi-utility design
• Mains, Services, Internals
• One contractor, one trench,
• Manage the asset adoption process
• All asset are adopted by incumbent statutory
  supplier

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Recognising the need for change

• We have responded to the Governments 2003 launch
  of the Communities Plan (Sustainable Communities
  Building for the future)
• Announcing major growth areas which included the
  Thames Gateway
• Thames Water Services has combined its PPP/PFI
  experience with thecapability built up by our
  multi-utility connections business to offer
  alternate solutions and technologies for major
  urban developments
• We have recognised the need to address new ways
  of working for the future to encompass the
  drivers and challenges of growth and
  environmental change
• Water energy efficiency solutions embracing
  renewable sources are vital to future development

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The multi-utility joint venture approach

• A Special Purpose Company (SPC) for large scale
  mixed use developments
• Typically developments over 3000 units
• The SPC will fund the provision of utility
  infrastructure improving developer cash flow
• Delivering assets over build programme
• Operate and maintain assets over a concession
  period
• Customer income is used to offset the initial
  capital expenditure
• Enabler for lead developer to invest in
  sustainable technologies
• Potential for lead developers to take equity
  stake in the SPC

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The multi-utility joint venture model

Land owner / lead developer
Multi utility SPV
Funding
Stake holders
Design and Build
Operate
Independent Gas Transporter
Off site
Primary
Local
Telecoms
Gas Operation
Water and Sewerage
Power
Gas assets
Telecoms Partner
Power Supplier
Package Developers
Customers
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Developing sustainable solutions- Enabling
sustainable technology
Funds available to invest in sustainability
Actual Cost
Budget
0m
Traditional Utility Approach
20m
20m
10m
Increased Flexibility for incorporating
sustainable technologies
Multi-utility Installation
2m
10m
10m
8m

Multi-utility JV Model
5m
10m
5m
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Developing sustainable solutions - Our ability
to offer sustainable water

• Water reuse / water efficiency
• Municipal scale reclaimed water supply
• DBO communal / building scale grey/black water
  recycling systems
• Large-scale rainwater harvesting
• Customer services
• Customer contact, metering and billing services
• Advisory audit services
• Water efficiency
• Water regulations

• Network (Clean and Dirty)
• Design, build and operate (DBO) dual water
  reticulation systems and sewage network
• DBO and maintain sustainable urban drainage
  systems
• Water treatment
• DBO on-site boreholes and treatment
• Wastewater treatment
• DBO local sewage treatment works
• Sewage outputs fed into energy production process

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Developing sustainable solutions- Re-use
experience
Increasing scale
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Developing sustainable solutions- Our growing
involvement

• Allenby Connaught
• Utility Infrastructure MUJV with partner EdF
  Energy, sub-contract to Aspire Defence on behalf
  of MoD
• BedZed
• Provision of alternate wastewater re-treatment
  facility, evaluate existing technology
• Preferred Bidder for
• Battersea Power Station Redevelopment (JV with
  Morgan Est)
• Ebbsfleet Valley (JV with EdF Energy)

• MU Installations
• Dartford Bridge, London
• Paddington Basin, London
• Heart of Bow, London

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The key challenges benefits

• Affordable solutions
• Treatment costs of recycled water is more
  expensive
• Regulatory issues
• Licensing position for new operating model not
  fully established

• The financial burden on the primary developers is
  reduced
• Investment in sustainability can be funded to
  meet imposed planning conditions or environmental
  aspirations
• Demonstration that One Planet Living is being
  incorporated
• The primary developers only have to deal with
  utility provider, Single Point of Contact
• Integrated design and installation leads to
  efficiency
• Contractual certainty on delivery targets

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Summary

• Changing the approach to utilities provision is
  not an option, it is a must!
• Must maintain
• Quality of product and service
• Environmental considerations
• Value for money
• Need to develop drive
• Flexibility in solution customer choice
• New operating financial models and technical
  solutions