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Concessions

PHOTO concessions air view

Severn Trent can help municipalities address their financial and aging infrastructure issues through long-term concession solutions.

Municipalities are addressing their financial and aging infrastructure issues by granting long-term concessions to private entities. A concession is a form of a Public-Private Partnership where a private entity (the concessionaire) enters into a long-term lease agreement – typically 30 – 50 years – with the water or wastewater system owner.

The concessionaire (a financial partner, working with Severn Trent as their partner and operator) provides an up-front payment and/or series of lease payments to the owner in exchange for a long-term lease and the right to the collection of fees from the system customers. Importantly, ownership of the assets remains with the city or municipality. In this model, the concessionaire is responsible for:

  • The ongoing operation, maintenance, and regulatory compliance of the facilities
  • Funding and delivery of all initial and ongoing capital improvements
  • Billing and collection of revenue from system customers based on a pre-agreed rate schedule
  • Returning the improved facilities to the municipality at the end of the concession term

Opportunities in the form of Public-Private Partnerships are mutually profitable and result in operational efficiency. To learn more about the benefits of entering into a concession, contact Bill Malarkey at William.Malarkey@STServices.com or 215-283-3467.