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PFI Scotland Edition 8: July 2000

TAY WASTEWATER PROJECT

Background

The Tay Wastewater Project is the second wastewater scheme undertaken by North of Scotland Wastewater Authority (NoSWA) to be procured using the Government's Public Private Partnership procurement route. NoSWA has entered into a contract with Catchment Tay Ltd, a private consortia, to provide wastewater treatment and disposal facilities for the City of Dundee, Broughty Ferry, Monifieth, Carnoustie and Arbroath. The Scheme will primarily enable interception of foul flows from 41 outfalls presently discharging into the Tay Estuary and lower Angus coast, although some will be retained for storm water overflows. This will be undertaken by the design and construction of a series of new collection pumping stations and transmission pumping mains together with a new wastewater and sludge treatment plant at Hatton (Hatton WTP) situated between Arbroath and Carnoustie (see Fig.1). Increased stormstorage facilities and improved storm screening plant will be provided at the pumping stations together new or extended outfalls to ensure discharge below Mean Low Water Spring sea level. The final effluent from the Hatton WTP will flow through a new long-sea outfall whose discharge point is located 1.6 km offshore.

The Concessionaire will dispose of all sludge arising from the treatment processes and up to 1000 tonnes dry solids of sludges per annum that NoSWA may elect to import. Disposal will primarily be to agricultural land in accordance with present legislative requirements. The new facilities will be operated and maintained for 30 years by the Concessionaire, Catchment Tay Ltd.

Under the Urban Wastewater Treatment (Scotland) Regulations (UWWTR), statutory requirements now exist whereby water quality standards have been prescribed. NoSWA is responsible for collection, treatment and disposal of domestic and industrial effluent that is discharged into their sewerage collection system.

In response to the UWWTR, NoSWA signed a Concession Agreement with Catchment Tay Ltd in December 1999. Preparatory work started in July1999 which included the design and construction of the new and extended outfalls (approximately £10m value) under a separate agreement (Pre-Concession Development Agreement) between NoSWA and the Concessionaire. The Tay Wastewater Project is programmed to commence accepting and treating flows to the new standards by the end of 2001.

Catchment Tay Ltd is a consortium comprising Bechtel Water Technology, Morrison Construction and United Utilities with financing provided by a private finance bond placement. The Scheme requires a capital investment in the order of £90m for the 30-year Concession Period.

Features and Benefits

• Catchment Tay Ltd. will bear the design, construction, operation maintenance and financing risk associated with the Scheme which must comply with discharge consents and water quality standards which are enforced by Scottish Environment Protection Agency.
• The Scheme is financed by Catchment Tay Ltd through payment by NoSWA of tariff charges set for the Concession Period for treatment of wastewater and sludge. These tariff charges are funded through revenue charges to its customers.
• Catchment Tay Ltd. Are obliged to accept and treat all flows arising from the pre-defined catchment areas.
• The Scheme will provide the most effective solution to protect the environmentally sensitive waters of the Tay Estuary and Lower Angus Coast. In times of dry weather a single point of treated effluent discharge into the North Sea will replace the multiple crude or partially screened outfalls that presently operate.
• Physical and bacteriological contamination will be minimised ensuring that the designated beaches at Carnoustie and Arbroath and the candidate beaches at Broughty Ferry and Moifieth will not be compromised.

Facts

Sponsor: North of Scotland Water Authority
Contact: Tom Millar, PFI Manager 01463 245478
Concessionaire (Owner): Catchment Tay Ltd.
Contact: Alex Baikie, Project Director 01382 454546
Capital Value: £90m
Concession Period: 30 years

Advisors to NoSWA
Project and Technical: Mott Babtie Joint Venture
Financial: Deutsche Morgan Grenville
Legal: Allen and Overy
Senior Lender: Abbey National Treasury services PLC
Scottish Executive Contact: Ian Alexander 0131 2440258

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