Public private partnership

Harnaschpolder luchtfoto detail

Decision process PPP vs conventional way of contracting

In their search how to arrive at a cheaper way to implement this project, The Delfland Water Board comes into contact with the Ministry of Finance and the Netherlands Investment Bureau (NIB). The NIB proposes a PPP-construction, which could result in a cost saving for the Delfland Water Board of 150 million guilders. The Delfland Water Board starts to draw up plans for such a construction. Part of the activities consisted of the adaptation of the Water law (Waterschapswet), to make it possible to outsource the operation and maintenance activities, while the final responsibility remains with the Delfland Water Board.

Tendering and contracting

The choice of the PPP-partner was made through a European tender procedure. In September 2002 the European tender procedure is finalized. From the eight bidders, three were found to be acceptable. Finally Delfluent was selected as “preferred tenderer” with a cost saving 13,4%. After carrying through several adaptations, Delfluent submitted its “Best and Final Offer”, followed by the contract negotiations.

In December 2003 the DBFO-contract (Design-Build-Finance-Operate) was signed. A cost saving of 17,2% was realized, more than the required 10,5%. The construction works of the new Waste Water Treatment Plant (WWTP) Harnaschpolder started in January 2004.

Vlaggen kantoor Harnaschpolder

Contract & back-to-back contracts

Based on the risk matrix, which was drawn up during the tender procedure, it was decide which activities could best be put under the PPP-contract. The principle that the party that can best cope with a certain risk should bear that risk, was applied.

A DBFO-contract was signed between The Delfland Water Board and Delfluent. Delfluent has sub-contracted the design and construction, including the related risks to BAHR through the EPC-contract. The operation and maintenance and all related risks were sub-contracted to DSBV through the O&M-contract.

Besides these contracts, Delfluent has entered into a Common Terms Agreement (CTA) and two financing contracts (Commercial Facilities Agreement and EIB Finance Contract) to arrange the project financing. Guarantees to the banks are contractually arranged by signed of Direct Agreements between the banks, The Delfland Water Board and Delfluent. This gives the banks and the Delfland Water Board the right to step in, in case Delfluent would not fulfil its contractual obligations.

As per 15 June 2016 all finance contracts have been terminated as a result of the restructuring of the finance.

At all times, the Delfland Water Board will remain the rightful owner of the treatment plants and the transport system, while Delfluent has obtained the ‘Right of Use’ for the duration of the 30-year concession period. The Delfland Water Board retains its public responsibility with regard to the treatment of waste water.