Case Study
Structuring a 200,000 m³/day Wastewater PPP
Intro
How a critical wastewater capacity gap was converted into a bankable BOOT transaction
The Independent Sewage Treatment Plant was structured to address a critical wastewater treatment capacity gap in one of the GCC countries, where existing plants had reached their design limits and future demand was increasing during both pilgrimage and non pilgrimage periods.
We supported the project by developing the business case, assessing delivery options, structuring the BOOT PPP model, preparing the financial and commercial case, defining the payment mechanism, and assessing risk allocation and value for money.
The project created a bankable pathway for a 200,000 m³/day wastewater treatment plant, supported by a 20 km treated sewage effluent pipeline and a 25-year PPP structure. The analysis demonstrated stronger lifecycle value, improved risk transfer, and an estimated USD 100.5 million value for money benefit compared with public sector delivery.
Details
From Challenge to Bankable Solution
Challenge
GCC city required additional wastewater treatment capacity as existing facilities had reached their design limits, while demand was expected to increase during both pilgrimage and non pilgrimage. The client needed a bankable structure that could mobilize private-sector investment, protect service reliability, and meet environmental requirements.
Solution
We supported the business case, PPP option analysis, payment mechanism, risk allocation and financial assessment. The recommended structure was a BOOT PPP, enabling private sector financing, long-term operations, and eventual asset transfer back to the public sector.
CAPACITY (m³/day)
200k
PPP TERM
25Yrs
project cost (USD)
500 Mn
Project IRR
10-12%
Get In Touch
28 Christine Elliott Ave, Whitby,ON,Canada L1P0B9
+647 571 6563
saad@bisfconsulting.ca
