Page 90 - Urban water supply handbook

IMPROVING URBAN WATER INFRASTRUCTURE THROUGH PUBLIC-PRIVATE PARTNERSHIPS

IMPROVING URBAN WATER INFRASTRUCTURE 3.9

TABLE 3.2 (Continued)

City State Description Length (years) Type
Quincy Wash. Wastewater 20 DBO
Reidsville N.C. Wastewater 10 O&M
Rockland Mass. Wastewater 10
Seattle Wash. Water 25 DBO
Springfield Mass. Wastewater 20 O&M
Tampa Bay Fla. Wastewater 20 DBO
Toronto Ohio Wastewater 10
W. Melbourne Fla. Wastewater 10
Wildwood N.J. Water 20 O&M
Wilmington Del. Wastewater 20
Sources: Public Works Financing, March 1998, p. 5, and March 2001, pp. 8–9.

17
palities. For example, Seattle used a design, build, and operate approach to build
a new water treatment facility and saved more than 40 percent. 18
Long-term contracts also impact the amount of savings generated through pub-
lic-private partnerships. Private firms can better manage costs over a longer period
of time and amortize up front investments in advanced technology and computer-
ization. Some recent long-term water and wastewater O&M contracts have gener-
ated estimated savings ranging from 20 to 50 percent (Table 3.3).

3.4.2 Infrastructure Needs
Many water and wastewater systems were built with federal funds during the
1970s and need upgrades and replacement. Some systems include water and sewer
infrastructures that are even older, some dating back to the early 1900s. In parts of
St. Louis, for example, the wastewater system dates back to before the Civil War. 19
For other cities, such as Las Vegas, rapid economic growth is fueling the need for
public-private partnerships. Congress has reduced grant funding for infrastructure
replacement, and states offer only low-interest revolving loan funds.
The massive costs of replacing and maintaining water and wastewater infra-
structure will necessitate an examination of public-private partnerships. The
U.S. EPA recently estimated that the nation’s 76,000 drinking water systems
alone will require $150 billion in investments over the next 20 years. 20 The
American Water Works Association (AWWA) examined water utilities in 20
large cities and estimated that $250 billion is needed over the next 30 years to
21
replace aging drinking water mains, valves, and fittings. Wastewater systems
will require nearly $140 billion in the next 15 years to meet new water pollution
rules, according to the EPA. 22

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