
Kinnegar Waste Water Public Private Partnership
Client: Northern Ireland Water
Contract: Design and Construction of a Treatment Works
Kinnegar Wastewater Treatment Works (WwTW) was the first Private Finance Initiative water project to be signed in Northern Ireland. Coastal Clearwater Ltd (CCWL), the Special Purpose Company set up for the project and in which Lagan SCG Ltd have a 100% share, signed the contract with the Water Service to Design, Build, Finance and Operate the plant for 24 years.
The project included the design and construction of a treatment works catering for a population of in excess of 100,000. The site was at an existing wastewater treatment works on the County Down coast. The new works required the upgrading of the existing plant to ensure compliance with EU discharge requirements. Thereafter CCWL were responsible for the daily operation and maintenance of the plant for the remainder of the contract period. Financing for the project was 90% debt provided by Dresdner Bank and 10% equity from the sponsors. Payment was based on treatment of flow and Load (Suspended Solids and BOD) entering the plant with deductions across 36 parameters for non-performance.
The upgrade works were carried out by Charles Brand ltd and completed in 2000.
The plant has been operational from April 2000 and the concession was successfully transferred back to Northern Ireland Water at the end of the 24 year contract.
Lagan MEICA Ltd was established to carry out the daily operation and maintenance of the Kinnegar Treatment Works. Formally a joint venture between Charles Brand, and United Utilities Services Ltd, Lagan MEICA Ltd operated the plant on a daily basis to ensure the plant met the compliance standards in the Contract.
Lagan MEICA’s PPP contract was unique in that Lagan MEICA was responsible for the supply of power and chemicals used in its operation, which was contrary to other Northern Ireland Water PPP schemes.
Lagan MEICA was also responsible for the long term maintenance of the plant and for advising the client on the longer term refurbishments works required.
Operation and Maintenance of the new plant began in 2000 and Lagan MEICA ltd had a 24 year contract to operate the works.
Lagan MEICA Ltd was also responsible for the transport of treated sludge to the Water Service’s incinerator and screening and grit to disposal sites.