The Public-Private Partnership Model
A key to efficient development of large-scale water infrastructure projects is the seamless allocation of risk and balanced incentive structure of the Public-Private Partnership model.
Poseidon Water uses a Public-Private Partnership approach to water project development. The so-called “P3” approach provides a clear framework for assigning roles and responsibilities to those best able to manage various project risks. As the overall project development partner, Poseidon plays a lead role in identifying and optimizing the allocation of risk among all parties. Each contract party is able to focus on its area of greatest expertise. Municipal agencies are able to use their scarce resources more efficiently, and private project partners earn benefits in line with their project contribution and at-risk capital. Typical features of projects developed in this way include:
- A long-term water purchase agreement with predictable pricing.
- Fully-insured, turnkey, fixed price and date-certain engineering, procurement and construction (“EPC”) contracts.
- Timely construction and overall project implementation.
- High service quality and assured adherence to all statutory requirements.
- Clear assignment of risks for changes in energy consumption and price levels.
- Explicit performance guarantees for project operations.
- Lowest overall financing cost consistent with attracting private equity capital.
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