Project Finance Structured Schemes

GREENFIELD PROJECTS

MUL has extensive experience in developing new operational water and wastewater assets from the ground up under BOT, BOO, full concessions and PPP models. MUL is utilising this unique experience to expand into the renewable sectors as an extension to its utility provision.

Greenfield projects are designed and planned with careful consideration to our client’s needs over the life of a contract. Projects are structured to cater for the necessary technical and commercial requirements, allowing for an optimum solution to be presented to clients. On PPP’s, Metito works closely with various government ministries and stakeholders to structure a project in line with master plans for the sector, taking into account key operational considerations including demand/supply models, downstream network capability, and other financial considerations such as affordability analysis and financial impact on sector. This ensures projects are socially, environmentally, economically and financially sustainable and that they can play an enabler role for the development and evolution of the whole sector.

MUL’s strong relationships with key financial institutions and decision makers enables the company to provide the most efficient financing structure that can best suit the needs of each project uniquely.

BROWNFIELD PROJECTS

Metito Utilities’ highly skilled experts are equipped with forward-looking management techniques and a proven track record in improving operational efficiency and optimising existing resource structure. Metito’s experts are able to assess existing water and renewable energy assets, recommend world-class solutions and execute scalable project expansions and revamps, and apply service on existing facility under a long-term contract.

Under a Takeover-Operate-Transfer (TOT) model, MUL conducts extensive assessments of the current state of the assets before putting in place an overall lifecycle plan, outlining the necessary investment for a full rehabilitation. MUL then undertakes the responsibility for raising the necessary financing requirements and implementing the rehabilitation plan with a view for improving system efficiency and delivering optimum operational performance.

Clients, in turn, receive a world-class operational service governed by a performance based approach. Clients further benefit from offloading such assets from their books, allowing Metito to take full responsibility of planning, expanding, financing, and operating these brownfield projects.

OPERATIONS AND MAINTENANCE

Under an Operation and Maintenance Contract, management, operation and the rehabilitation of downstream assets, distribution networks, and house service connections are all managed by Metito Utilities. The company provides client support in monitoring and following up on such work ensuring full integration of new works within the existing network. MUL also ensures that all new assets are properly recorded in the client’s inventory.

The company utilises state of the art digitalised mapping, computerised models, and asset management systems to optimise operational performance, ensuring service continuity, and minimising interruptions. Special attention is given to works that may interfere with the continuity of water supply, assuring that interruptions are limited to the minimum necessary and that the distributed water quality is not affected by these disturbances.

CUSTOMER SERVICE, METERING, BILLING AND COLLECTION MANAGEMENT CONTRACTS

These services focus on enhancing existing processes, procedures, resources, collection and bad debt management. This is achieved by either undertaking the full scope of responsibility on behalf of the client, or by providing management support to the existing team.

By managing customer service, billing, and collection management, Metito Utilities conducts an assessment of the existing processes, procedures, resources (tools and systems), hardware and software dedicated to billing, collection, bad debt management practices, human capital allocated to customer relationship and revenue stream management. Following the assessment a commercial management plan is set to outline necessary improvements to inventory, procedures, consumption metering and tariff structure amongst others. MUL then manages the implementation of the plan involving the training of client’s staff, based on the strengths and weaknesses identified during the assessment of human capital skills.

NON-REVENUE WATER (NRW) REDUCTION

The optimisation of downstream networks (by tackling both technical and commercial losses) ensures unaccounted for water is kept at a minimum, thus allowing for efficient management of existing water resources, and generating significant savings to the client. MUL provides NRW reduction services through short term management programs or longer term performance based contracts.

MUL’s approach to a NRW reduction program is based on three main vectors: strict diagnosis of the state of the water supply system and water loss (real and apparent); definition of the adequate strategy; action plan to develop a rigor implementation.

The NRW reduction program is prepared to achieve the following, commonly sought after objectives:

• Cost optimisation in the following areas; intake and water treatment, energy consumption, maintenance of the systems and operational management
• Protection of water resources and the surrounding environment through the reduction of real water losses, rational use and reduced water waste, reduction of the environmental impact of works to expand storage and treatment of water
• Increasing collection turnover by improving the metering accuracy
• Decreasing the amount of illegal/fraudulent connections

During the diagnosis stage several opportunities for improvement may be identified which form the basis of the strategy, recommended methodologies and procedures. MUL offers the following services to apply the agreed on strategy such as planning and monitoring, planning and implementation, and management of the water supply system to ensure a reduction of consistent losses over the years of the project implementation. In this last option, a better performance of the water supply system can be obtained through the effective management of tasks and the respective resources.