Expansion of P3 Concession Model To Water/Wastewater Facilities For California Municipality
Posted in P3s

On November 29, 2012, financial closing was achieved on a 30 year concession relating to the water and wastewater facilities of the City of Rialto, California.  The agreement, which had been executed in March 2012, is among Rialto Water Services, LLC, the single purpose vehicle set up by Table Rock Capital as the project sponsor, the City of Rialto and the Rialto Utility Authority.  

The approximately $175 million transaction is being bond financed through a private placement and an approximately $26 million equity contribution.  The concession agreement provides for approximately $40 million of near-term capital improvements, long-term operations and maintenance of water and wastewater facilities and potential future capital improvements throughout the 30 year term. 

The capital improvement and operations and maintenance work will be provided by Veolia Water West Operating Services, Inc. pursuant to a contract with Rialto Water Services.  The Veolia contract includes an array of performance measurements and incentives for enhanced and efficient facility performance.  Veolia has been providing operations and maintenance services for the City’s wastewater facilities for the past several years.

The City of Rialto is located in San Bernardino County, approximately 60 miles east of Los Angeles and has approximately 110,000 residents. 

The P3/private financing nature of this transaction is likely to garner regional and national attention, providing a potential blueprint for accessing capital and funding for communities facing budget challenges and critical water and wastewater facility infrastructure demands.

  • Corey A. Boock
    Partner

    A nationally recognized leader in the field of public-private partnerships (P3s), Corey Boock offers clients more than 25 years’ experience in structuring, procuring, financing and negotiating cutting-edge deals in the ...

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