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UK Water: Cunliffe Report is In, and Ofwat is Out

The United Kingdom’s water industry is undergoing a tumultuous and critical reorganization, and it is far from over. The end results will reverberate well beyond the UK’s privatized water sector, and inform the broader debate over the role of the state and private sector in providing key public goods and services. Thames Water, the country’s […]

On the Brink: UK Water Commission Report in, and KKR Out at Thames Water

On June 3rd, the Cunliffe Commission in the United Kingdom published its widely anticipated interim findings on how to fix the nation’s beleaguered water industry. Almost as if on cue, that very same day KKR announced that it would be walking away from a planned rescue investment in Thames Water, the largest and most financially […]

Thames Water Looms Over UK Efforts to Promote Investment

In recent months, the Labour government in the United Kingdom has rolled out the red carpet for investment, taking steps to improve regulatory certainty and bring in private capital for new megaprojects. The government is right to worry about the UK’s ability to attract private investment, however. Overshadowing all of Labour’s efforts is the ongoing […]

Groundbreaking for Phase 2 of USACE Ship Channel P3 in Texas

Channel deepening or waterway dredging infrastructure projects make excellent candidates for the P3 procurement model, at least in theory. They are capital intensive during the deepening project but also require long-term maintenance. There is the potential for long-term risk transfer and clear performance-based specifications. The projects also entail significant maintenance risks due to variations in […]

Arizona Starts Massive Water Supply Project Procurement

The July/August edition of The Atlantic ran a cover story called “The Valley” which was reportedly the second-longest article in the magazine’s history. While the article was positioned as a dispatch to America “from the near future,” its true subject was Phoenix, Arizona. The city is framed as a microcosm for the sustainability of the […]

How Profits, Rather than Politics, Became the Consensus on Thames Water

The British people have a right to be angry at the state of their water industry. And they certainly are. The industry featured heavily among voters in the UK’s recent election campaign, which resulted in a sweeping victory for the Labour Party. Things have only gotten worse for the industry, and Thames Water in particular, […]

Who’s Muddying Thames Water?

We Yanks are loathe to weigh in on the affairs of the British, and this is especially true with regards to infrastructure policy. His Majesty’s infrastructure agencies have long been considered the gold standard, and London a respected global center for infrastructure finance. The debacle presently unfolding at Thames Water, and the privatized UK water […]

Commercial Close for Prospect Lake Clean Water Center in Florida

A DBFOM P3 to develop the 50 MGD Prospect Lake Clean Water Center in Fort Lauderdale, Florida reached commercial close in February. The concessionaire for the project is a joint venture between IDE Technologies and Ridgewood Infrastructure, with Kiewit as the design-builder for the project. The project includes fixed costs of $485 million and will […]

Trials and Privatizations in Chester Pennsylvania

Chester, Pennsylvania fell on hard times decades ago, and today the city is very, very bankrupt. An editorial in the Philadelphia Enquirer in December noted that the city currently faces a $46.5 million deficit on a budget of just $55 million. The city of nearly 34,000 has been in a long-running financial crisis that is only […]

Are P3s Possible for Dredging? USACE Awards First Pilot

Dredging projects are, in theory, well suited for delivery and long-term maintenance via a P3. They require significant upfront capital investment for the channel deepening and any locks or supporting infrastructure, and entail relatively clear availability-based performance mechanisms. P3s in the sector may also be used to transfer unique risks, including some sedimentation risks and […]