National Water Commission Capital Projects “Of all infrastructure services, water is the only one essential for life, health and development.�
Creative Financing of Water Infrastructure for National Development NWC President Mark Barnett
The National Water Commission (NWC) is Jamaica’s premier water service provider, charged with the responsibility of satisfying the island’s most critical water supply and wastewater service needs, impacting on all aspects of daily life and economic activity. Currently the NWC produces more than 90% of Jamaica’s total potable water supply. More than 70% and 15% of the population are served directly with water and wastewater services, respectively, from an NWC network of more than 150 underground wells, as well as about 250 river and spring sources. NWC recognizes that there is a need to both expand our network and increase the reliability of our services. That is, we want more of our customers to experience 24/7, all year round water service as well as improved wastewater operations. Water supply and sewerage expansions are also planned to increase access by more of the population and to support developments that are planned across the country. Consistent with Jamaica’s Vision 2030 and government policy of making potable water accessible by all Jamaicans and ensuring that sewage generated in major urban centers is treated to meet tertiary quality standards in order to protect the natural environment, National Water Commission is currently undertaking more than 100 projects at various stages of the project development and implementation life cycle.
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National Water Commission Capital Projects
PROJECT IMPLEMENTATION STAGE A few of the many projects now being implemented include: • Kingston and St. Andrew Non-
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Revenue Water Reduction Co-Management Programme funded by the IDB at a cost of US$42M; Supervisory Control & Data Acquisition (SCADA) System for Kingston and St. Andrew funded by the IDB at a cost of US$3M; Construction of a 1.0 M/L Centralized Wastewater Treatment Plant in Port Antonio funded by the IDB at a cost of US$7M; NWA/ NWC MIDP Roadway and Water & Sewer Mains Replacement Programme including work along Marcus Garvey Drive, Barbican Road, Mandela Highway, Hagley Park Road and Constant Spring Road funded by the Government of Jamaica up to US$32M; Caribbean Regional Fund for Wastewater Management (CReW) Pilot programme involving the construction of sewerage facilities at Boscobel and Elletson Flats; de-commissioning of treatment facilities at Acadia, Bay Farm Villas and Hughenden; and rehabilitation of facilities at Blackwood Gardens, De la Vega City and Lionel Town through a special grant- supported commercial loan funding of US$4M, US$3.7M, and US$5M, respectively.
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Other projects are also being conceptualized and are expected to be financed through a mix of measures – traditional sources such as multi-lateral and bi-lateral agencies, public private partnership (PPP) arrangements, commercial bank financing and using internal resources. Recognizing the need for continuous improvement in service delivery using all available infrastructural and technological means, the NWC’s 2017-2021 Corporate and Operational Plans identify our core objectives as: • • • •
Grow Revenue and Available Cash; Increase Operational Efficiency; Improve Customer Service Delivery and Public Image; and Build Staff Capacity to support the business.
National Water Commission Capital Projects
Below are some of the major proposed projects for which financing is still being sought or finalized and which the NWC is happy to discuss.
PROJECT DEVELOPMENT STAGE PPP Construction of 15MGD Content Water Treatment Plant
Construction of a 15 MIGD WTP at NIC’s Rio Cobre Dam in Content, St. Catherine. This is a 20 year PPP Arrangement to finance, build and operate the Rio Cobre WTP. The water will be sold to the NWC via a Water Purchase Agreement. Negotiation is advanced between the parties. Financing of the project will be mostly in JMD currency. To date, key matters agreed on include PPP structure, acquisition of lands, financing and payment mechanism. Regulatory endorsements, non-objections and approvals have also been received. The Negotiation Report is currently being compiled for submission to the Privatization Enterprise Team. Proposed Financing/ Budget: PPP/ US $60M
Soapberry Wastewater Treatment Plant - CWTC
The NWC is desirous of reducing its shareholding in Central Wastewater Treatment Company (CWTC), and will therefore be pursuing a strategy of engaging with the minority shareholder (Ashtrom) to acquire the NWC’s shares. The NWC, with expert advice, is currently undertaking the necessary analyses to determine the optimal privatization strategy. Proposed Legal and Financing Due Diligence Costs: US$550,000.00
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National Water Commission Capital Projects
KSA Wells Rehabilitation
The project entails the provision of an additional 5.0 MGD of water supply from eleven (11)disused wells in Kingston via a fifteen (15) year Public Private Partnership Arrangement. The project will entail the financing, investigation, procurement, well development, construction, operation and maintenance via a Water Purchase Agreement where water will be sold to the NWC. Negotiation is advanced between the NWC and a Consortium. Financing of project will be mostly in Jamaican dollar currency. Key matters agreed on include finalization of well sites, water treatment technology andregulatory agencies comments/feedback. Finance structure and payment details are currently being finalized between the NWC and an investor. Proposed Financing/ Budget: Finance & Lease / JM $700M
Northern Parishes Water Supply (NPWS) Project
The project will provide increased transmission and water production capacity along the northern corridor of the island, including allowance for potential development arising from the construction of the North-South Highway. It will involve the construction of new water treatment plant(s); water conveyance facilities (pipelines & pump stations); and water storage tanks. It will also rationalize existing water operations along the North Coast with greater use of more efficient large scale treatment plants and transmission systems with larger and more reliable water sources. A Strategic water demand model, water resource study and pre-feasibility study of the project have all been done to assist in the assessment of financing and implementation options. Customer surveys are now being conducted and are far advance in sections of the project area. Proposed Financing/ Budget: US$280 M
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National Water Commission Capital Projects
Hermitage Dam Rehabilitation Programme – Consultancy Services
Study to undertake design and rehabilitation of the Hermitage Dam and its associated facilities. Other activities include dredging/de-silting of the dam, civil works, mechanical electrical installation works and watershed management through institutional strengthening and capacity building. The NWC contracted the services of consultants Studio LNG G. Pietrangeli of Italy at the end of 2016. The Consultant submitted an Inception Report in February 2017, which was reviewed by the NWC’s Project Steering Committee. The Consultant continues to undertake detailed field work and assessment in the project area. Proposed Financing/ Budget: CDB/ US$302,200.00
KSA -Transmission Mains Replacement & Upgrading Programme (Consulting Engineering Designs)
1) From Six Miles via Spanish Town Road via Charles Street to Glenmore Road Booster Station. The NWC entered into a six (6) months duration contract with Cole Engineering Inc. of Canada in May 2017. Proposed Financing/ Budget: IDB/ US$490,000. 2) From Stanton Terrace/Herb McKenley intersection to the sump at the NWC’s Marescaux Rd. NCC’s acceptance of NWC’s recommendation of award was received. The twenty four (24) weeks duration Contract was awarded to Fluidis Systems Limited in May 2017. Proposed Financing/ Budget: IDB/ US$850,000
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National Water Commission Capital Projects
3) Raw water pipeline from Rams Horn to Constant Spring WTP, Runaway Bay to Mammee Bay and Ferry/ Mandela Highway to Rock Pond, Red Hills. Report on the Evaluation of EOI is completed wherein five of the eight firms were shortlisted. The NWC received the IDB’s “Non-objection” on the Evaluation Report and Draft RFP Document. The five firms were issued with Request for Proposal Documents. Proposed Financing/ Budget: IDB/ US$850,000
USTDA/NWC Energy Reduction Project
This project is a Technical Cooperation Grant Agreement between the USTDA and the NWC to fund and develop bankable Energy Audits and Feasibility Studies to facilitate third party financing for energy efficiency and renewable energy technologies at multiple NWC facilities. The Energy Audits, Feasibility Studies and Third-Party financing model would allow the NWC to increase energy efficiency and develop on site renewable power generation, without the upfront capital expenditure costs. Preliminary assessment of 32 NWC facilities and preparation of Technical Audit Report have been completed. The Report provided an assessment and analyses of the data (electricity consumption etc.), potential for electricity efficiency reduction and use of Renewable Energy. Proposed Financing/ Budget: USAID Grant /US$1.0M
Supply and Installation of Photovoltaic (2.18 MW) System The project is being proposed as a twenty-five (25) year arrangement to undertake the financing, design, construction, operation and maintenance of a 2.18 MW photovoltaic solution for installation. Responses to a RFP have been evaluated and recommendations are being processed. Proposed Financing/ Budget: Finance & Lease/ US$4.63M
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National Water Commission Capital Projects
PROJECT PLANNING STAGE Kingston Sewerage Improvement Project -Downtown Sewerage Rehabilitation In order to accommodate the additional flows from the planned extension of the KSA sewer network and the planned re-development of downtown Kingston, it will be necessary to refurbish/upgrade the Downtown Kingston Sewer Network.
A detailed diagnostic survey will be conducted of the entire Downtown Kingston Sewer Network to identify deficiencies in this infrastructure. It will include inspections of selected manholes throughout this network and the use of CCTV cameras to assess the internal condition of key collector sewers. The information will be used to develop a comprehensive plan for the rehabilitation and upgrading of major sections of the Downtown Kingston Sewer Network including constructing replacement trunk sewers as well as street sewers in most areas of the town. The work will be done alongside the rehabilitation of the water supply network in the area. Proposed Financing/ Budget: Loan/ US$200 M
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National Water Commission Capital Projects
Downtown Kingston Water Supply Network Rehabilitation
It is planned to replace major sections of the water supply network to reduce losses and to provide improved capacity. The pipeline replacement will be done alongside the rehabilitation of the Downtown Kingston Sewer Network. Proposed Financing/ Budget: Loan / US$400 M
PORT ANTONIO WATER SUPPLY PROJECT (STAGE 2)
NWC developed the Port Antonio Water Supply, Sewerage and Drainage Project, which included rehabilitation and upgrading of the water supply for Port Antonio. Aspects of the water supply improvement work were implemented. There are plans to rehabilitate existing wells and construct new ones to increase the output to 4 mgd. It is also intended to replace 5 kilometres of the transmission main from Grants Level to Port Antonio. Work is now underway on the construction of a new wastewater treatment plant to serve the area. Proposed Financing/ Budget: PPP & Other / US$10 M
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National Water Commission Capital Projects
Centralised Sewerage Systems Major Towns & Parish Capitals
One of the GOJ‘s Sustainable Development Goals is to significantly increase its population access to central sewerage services in the medium term with the sewering of at least four major towns/parish capitals and the extension of sewer network in the major urban centres. In order for the NWC to commence with the implementation of these works, Master and Development Plans will be required for each of these towns. It would guide the Commission’s future plans for the development and implementation of central Sewerage systems for these towns. The NWC has identified some twenty (20) of major towns and parish capitals for the implementation of a central sewerage system which include Old Harbour in St. Catherine, May Pen in Clarendon, Mandeville in Manchester, Falmouth inTrelwany, Spanish Town in St. Catherine and Santa Cruz in St. Elizabeth. Proposed Financing/ Budget: PPP/ US$500 M
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National Water Commission Capital Projects
Three Towns Project
The objective of this programme is to undertake the NRW Reduction for three (3) coastal towns:- Old Harbour, May Pen and Mandeville via the issuance of Performance Based Contracts. The exercise will include an audit and strategy development of the project areas; the undertaking of hydraulic modelling; development of discrete metered areas and pressure zones; continuous assessment and monitoring of NRW Reduction targets and implementation of NRW reduction intervention measures. Proposed Financing/ Budget: PPP/ US$65M
Rural Water Supply Projects
The scope of works will include the upgrading, rehabilitation and extension of water systems for rural communities including: 1.) Green Park - Bamboo, St. Mary 2.) Two Meeting/Moravia, Manchester 3.) Mason Hall, St. Mary 4) Ginger Ridge, St. Catherine 5.) White Hall, St. Thomas 6.) White Hall - New Market, St. Elizabeth 7.) Albert Town,Trelawny. Engineering designs are currently being prepared and pipes are to be procured. Proposed Financing/ Budget: Loan/ JM$400M
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National Water Commission Capital Projects
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National Water Commission Capital Projects