Of the G-7 countries, Canada has perhaps the least experience with water and wastewater P3s, but there are several large- and small-scale municipal water/wastewater treatment plants that provide excellent models.
The City of Moncton entered into a 20-year licensing agreement with USF Canada in 1998 under a two-part DBFO contract. The $85 million contract is expected to save the municipality $23 million versus a traditional design-build approach. Water quality must meet or exceed Canadian Drinking Water Guidelines, the rate is fixed for 20 years and the company must adhere to a detailed repair and replacement schedule.
In December 2000, USF Canada began an operations and maintenance contract for the Town of Goderich's water supply and distribution as well as wastewater collection and treatment. Performance guarantees ensure exemplary drinking water standards and the Town shares the savings resulting from improved efficiency. Cost savings of 8% have been achieved based on the $1.4 million annual payment from the Town.
The Regional Municipality of Haldimand-Norfolk (now Counties of Haldimand and Norfolk) entered a five-year operations, maintenance and management contract with US Filter in 1998 (renewed in 2003) for their wastewater treatment facilities. The 34% ($1 million per year) cost savings have been reinvested in water and wastewater infrastructure and performance has exceeded requirements. Existing staff was offered equivalent wages and benefits when transferred from the municipality.