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Mott MacDonald appointed on Russia’s first water PPP

15 Jun 11 Mott MacDonald has been appointed by SUE Vodokanal St Petersburg as technical advisor for the first Russian public private partnership (PPP) water supply project.

The project will modernise a facility constructed 40 years ago. The work on the Neva water project involves the design and construction of a new northern water treatment plant and includes reconstruction of some facilities at the existing plant. The overall objective is to increase the total output of potable water from 600,000m3 to 800,000m3 per day and to meet the latest national and European water quality standards.

Mott MacDonald’s role includes advising on developing technical requirements for the design, construction and operation of the new facilities.  It will also involve confirming technical solutions for the project and water consumption forecasts as well as providing an analysis of capital and operational costs. Mott MacDonald’s project team will also develop a strategic social and environmental impact assessment.

A private sector partner - yet to be appointed - will be required to design, build, finance and operate the project facilities for a period of 25 years. It will have an offtake contract with SUE Vodokanal St Petersburg for the supply of potable water under the conditions of the PPP agreement.

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Mott MacDonald’s project director Simon Robinson said: “Mott MacDonald brings a wealth of international water PPP experience to the project. Using a PPP structure means that the preferred bidder will be selected on a whole life cost and quality basis which should in itself drive long term sustainability.”

The project is being managed by the Agency for Strategic Investments of the City of Saint-Petersburg and is currently at the tender stage. Financial Close on the project is planned for the fourth quarter of 2012.

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