Constanta Water - Preparation of a Performance Based Service Agreement

( EBRD: Romania, September, 2018 - December, 2019, Client: City of Constanta, EBRD, Budget: 300,000 EUR )

Title: Constanta Water - Preparation of a Performance Based Service Agreement

Budget: 300,000 EUR

Country: Romania

Dates: September, 2018 - September, 2020

Partner: Egis Romania

The City of Constanta (the City), the second largest metropolitan area of Romania with over 425 thousand population, is the largest port of the country to the Black Sea and a major commercial, trading and touristic center. S.C. RAJA S.A. Constanta (RAJA) is the Country''s largest public water and wastewater utility and the regionalized water and wastewater provider for the City of Constanta, the County of Constanta and several other localities in seven adjacent counties in Romania, serving in total a population of over 3 million.

RAJA approached the EBRD with a request to explore the involvement of the private sector in decreasing Non-Revenue Water (NRW) in the City''s water distribution network (the Project). RAJA requested the Bank to explore the involvement of a Private Partner under a Performance-Based Service Agreement (PBSA) between RAJA and the Private Partner, whereby the payment mechanism to the Private Partner contains certain parts linked to performance as defined in a number of Key Performance Indicators (KPIs).

The Consortium led by Corporate Solutions Consulting has been contracted to provide assistance to RAJA in the preparation of the draft PBSA, the drafting of tender documentation, launch of tender, tender evaluation and contracting of the Private Partner.

  • Developing the draft Performance-based Service Agreement for the two targeted areas of work of the Private Partner (a. Conducting relevant installations and modeling to determine the Company''s base NRW values

  • Implementing necessary measures for NRW reduction), based on international best-practice and standards and taking into account the existing legislation, current shareholding structure and ownership of assets

  • Preparing the tender documentation and assisting the Company in successfully launching the tender of the Project

  • Assisting the Company in the evaluation of the Expressions of Interest received from the bidders

  • Assisting the Company in the contracting of the winning bidder

  • Ensuring, throughout the assignment, appropriate transfer of skills via regular updates, provision of formal presentations and trainings to the Company and, as appropriate, other stakeholders.

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