People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Water and wastewater concession contracts Fernando Ferreira – [email protected] Be Water, S. A. a company of the group Beijing Enterprises Water Group Limited
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Introduction of Beijing Enterprises Water Group Limited (BEWG) • A Leading Provider of Integrated Water Environment Services which service network covers China, Malaysia, Singapore and Portugal, as well as the region of Taiwan, China.
Major numbers related to the company: • 8 service area
• More than 150.000 employees
• Over 100.000.000 of service people
• Nearly 400 plants
• Business revenue by June 30, 2015: 5.760.000.000HK$
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Portugal in Europe
Portugal’s territory
Population 10.346.870
Lisbon and Porto metropolitan area
around 50%
With sea coast about 80%
Total area 92.256 km²
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Legal context
Before 1993 • Management of water and wastewater services is, historically, a municipal responsibility
1993
• Legislation changed with the following main guidelines: • Municipalities may choose an indirect management of water and wastewater systems
through concession contracts with private and specialized management entities. • Creation of multi-municipal bulk systems managed by public companies.
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Model Operator
Direct management
• Municipality (municipal services) • Local authority services (municipalized services)
• Municipalities association
Delegation
• Company established in partnership with the State (municipal or State-owned company)
• Municipal owned company (the State is absent)
• Parish or users association
Concession • Private partner (PPP)
Management models
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
• Find a private partner with investment capacity
• (Increase coverage ratios, construction of the wastewater treatment plants and provide
treatment capacity for the wastewater collected )
• Improve the service quality to the population
• Have fair and socially acceptable tariffs
Municipality goals
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
After 1993
• 1994 – Portugal’s first concession contract in Mafra municipality. • Actually there are 34 concession contracts in Portugal and covering about
20% of the population of Portugal.
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Mafra concession contract Context
General data (1994)
Total area 298 km²
Population 43.731
Water system coverage 75%
Wastewater system coverage 40%
Water loss 30%
Water quality compliance 90%
Wastewater treated 5%
Mafra
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
• Apply the company know-how, specially in new technologies and new methodologies:
• GIS (Geographical Information Systems) • Network remote management • Control of water loss • Undue inflows • Asset management infrastructure
• Improve relationship with population and proximity with the costumers • Efficient management • Based on a long term contract (30 years)
Be Water strategy
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
Sources: INE, ERSAR, INSAAR and Be Water
53.0%
98.0%
90.2%
100.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
1994 2001 2011 2012 2013 2014
Water quality evolution (%)
Portugal(%) Mafra(%)
50.0%
30.7%
29.8% 15.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
1994 2001 2011 2012 2013 2014
Water losses evolution (%)
Portugal (%) Mafra (%)
82%
95%
75%
96%
70%
75%
80%
85%
90%
95%
100%
1994 2001 2011 2012 2013 2014
Water system coverage ratio evolution (%)
Portugal(%) Mafra(%)
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
61%
83%
40%
81%
20%
40%
60%
80%
100%
1994 2001 2011 2012 2013 2014
Wastewater system coverage ratio evolution (%)
Portugal(%) Mafra(%)
Sources: INE, ERSAR, INSAAR and Be Water
31.0%
82.0%
5.0%
79.0%
0.0%
20.0%
40.0%
60.0%
80.0%
1994 2001 2011 2012 2013 2014
Population covered by treated wastewater (%)
Portugal (%) Mafra (%)
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
• Mafra: first concession contract in Portugal • This project has being replicated in other municipalities and there are 34 concession contracts • This solution can be replicated
Replicability of the project
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
• Main drivers
• Municipality and company supported by their teams
• Integration in the company team of the public employees working in the water services
• Professional development of all staff
• Focus of all staff in providing the community with a public service of excellence
• Commitment, capacity and motivation of all management team
People first
People First PPP Forum . Geneva March 30th April 1st 2016 . PPPs a tool to achieve the SDGs
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