The City of Saint John – Safe, Clean Drinking Water Project
Location: Saint John, NB
Status: Operational
Value of Partnership: $217 million
Type of P3: DBFOM and DBF
Handback: 2048
Awards: 2017 Silver Award, Project Development, National Awards for Innovation & Excellence in P3s
The $217-million project, completed in Canada’s oldest city in 2020, is the single largest municipal infrastructure investment in New Brunswick’s history and the first large-scale drinking water P3 in Canada.
The project was developed using a unique P3 agreement that combined a DBFOM model for the primary infrastructure (treatment plant and reservoirs) and a DBF model for the additional infrastructure dams and distribution system. Service to residents needed to be maintained during the project’s construction and care was taken to inform customers and stakeholders throughout the process about using the P3 model.
The new infrastructure means residents no longer endure boil water advisories and will be provided with high-quality drinking water for many years to come.
As a result of using the P3 model, the project had an estimated total cost savings of $24.1 million NPV. This unique approach can be helpful for other municipalities searching for a model to modernize water treatment and distribution systems.
Partners: City of Saint John, Port City Water Partners (PCWP), a general partnership of Brookfield (PCWP) Inc., Acciona Agua International Inc. and NAC (PCWP) Inc.
Other Participants:
Public Sector: PricewaterhouseCoopers LLP – Financial Advisor; CBCL Limited – Technical Advisor; Partnerships New Brunswick – P3 Process Advisor; Torys LLP – Legal Advisor
Private Sector: Brookfield Financial Securities LP – Lead Developer, Financial Advisor, Equity Sponsor (50% through Brookfield Infrastructure Partners LP); Acciona Agua – Equity Sponsor (40%), Design-Build Joint Venture (50%), Design Team Member, Operations-Maintenance-Rehabilitate (OMR) Team Member; Acciona Infrastructure Canada Inc. – Design-Build Joint Venture (50%); North America Construction – Equity Sponsor (10%), Design-Build Subcontractor; Amec Foster Wheeler (now “Wood”) Environment and Infrastructure – Design Team Member; Stantec Consulting Ltd. – Design Team Member; SIMO Management Inc. – OMR Team Member; FCC Construction – Design-Build Subcontractor; Gulf Operators Ltd. – Design-Build Subcontractor; Revolution Strategy – Communications Manager; Davies Ward Phillips & Vineberg LLP – Legal Advisor
