openPR Logo
Press release

New Georgia Water Law Could Lead to Flood of P3 Activity

05-27-2011 11:07 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: InfraAmericas



By Vince Calio

Almost a decade after Shirley Franklin, the 58th Mayor of Atlanta, helped put the brakes on water privatization in the US, the state of Georgia is at the forefront of a new effort to involve the private sector in the development of large water projects.

In 2003, Franklin ended a deal between Atlanta and United Water, a subsidiary of France's Suez Environment, for the operation of the city's water system. The 20-year contract was cancelled just four years into its life.

That episode left a sour taste in the mouths of both public officials and water industry executives who blamed each other for the failure of a contract that was worth USD420m.

It also helped bring to a close a period in the late 1990s that saw European water companies try to penetrate the North American private water market. Many still remain in some form, but the US private water market never took off in the way they anticipated.

Since then, activity has centered on deals like the Connecticut-based Aquarion Water Company, which was acquired by funds managed by Macquarie, and the take-private of California's South West Water Company by JP Morgan Asset Management last year.

Cities and municipalities around the country continue to issue contracts with private firms for the operation and maintenance of water and wastewater systems, but a new law in Georgia could herald a wave of new P3 deals to expand or construct wastewater treatment facilities, and put the state at the heart of a revitalized private water market.

The law could also spur the state to seek a consultant as early as the end of the year.

SB 122
At the beginning of this month, Georgia Governor Nathan Deal (R) signed into law the much anticipated Senate Bill 122 (SB 122), allowing local governments in the state to enter into P3 arrangements to help finance various water projects.

In 2008, the state's General Assembly created the Georgia Comprehensive Statewide Water Management Plan, a council that represents 11 water planning regions, to assess the state's needs for water filtration, wastewater treatment and water supply. The council was created in light of the fact that Georgia is the seventh fastest growing state in terms of population since 2000, with an 18% increase in residents.

State Money Scarce For Projects
The council, in conjunction with the Georgia Environmental Protection Division (GEPD), is finalizing a report recommending, among other things, that wastewater treatment facilities either be constructed or upgraded. An official with the state's water plan said the council most likely would hire a consultant to determine the type of financing required for various projects that need to be implemented.

"The bill just passed, so right now we're trying to figure out where and what the needs will be and how best to finance them," said the official, citing that Georgia faces an USD823n budget deficit in FY2011.

"What we know right now is that the state doesn't have the money to finance all of the projects we want to do."

On Jun. 23, the council is expected to present final recommendations for water supply needs and improvements in ten regions in the state: Altamaha; Coastal Georgia; Coosa-North Georgia; Lower Flint Ochlockee; Middle Chattahoochee; Middle Ocmulgee; Savannah Upper Ogeechee; Suwannee Satilla; Upper Flint; and Upper Oconee.

Potential P3 deals, however, could happen in other regions, according to the official.

To Read The Full Article, click here:

For more information about InfraAmericas ( and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at Please remember to quote your reference: IAPR12OPR.

InfraAmericas is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the American continent.

1st Floor
4 City Road

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release New Georgia Water Law Could Lead to Flood of P3 Activity here

News-ID: 176974 • Views: 2020

More Releases from InfraAmericas

InfraAmericas Case Study: How Canada’s Jumbo CAD1.37bn CHUM PPP Bond Put Inves …
By Vince Calio In the past 12 months, Canada has once again reaffirmed its status as the market leader in North American PPPs by closing deals including the CAD1bn (USD1.05bn) Ottawa Communications Security Establishment Canada (CSEC) PPP in January this year, the smaller Thunder Bay Consolidated Courthouse at the end of 2010 and, more recently, the St. Joseph’s Healthcare Partnership PPP. But selling a CAD1.37bn (USD1.44bn) credit to investors in June
As Interest Grows, Uncertainty Hangs Over Brazil’s Airport Concessions
By Mick Bowen A sense of uncertainty lingers over the coming concessions in Brazil's airport sector as operators, contractors and infrastructure investors attempt to figure out exactly what the Brazilian government plans to do, market sources have told InfraAmericas. Yet the process is irreversible now that it has begun, ensuring that Brazil's most important airports will come under private control in the next year or so, they said. "The model still
Is Private Investment in US Ports About to Make a Comeback?
By Michael Dunning US ports are an attractive asset for infrastructure investors particularly because they are linked to GDP growth. It’s therefore not surprising that during the height of the rush to acquire infrastructure assets in 2006-07, they were at the top of many shopping lists. That led to a number of major US ports changing ownership. But nearly all of those deals ran into difficulties. The reasons why are many
Future of Texas Highway P3s Hinges on Next Two Deals
By Mick Bowen The future of P3s to develop highway projects in Texas depends on the shape the next two deals will take, namely the SH 99 Grand Parkway in Houston and IH-35E Managed Lanes project in Denton, market sources told InfraAmericas. Texas Governor Rick Perry signed Senate Bill 1420 (SB 1420), also known as the Sunset Bill, into law in mid-June and cleared the way for the Texas Department of

All 5 Releases