Sewerage Operations Privatization in Milwaukee

Bringing the benefits of public-private partnerships to every Milwaukee household by reducing their operating costs by 35 percent.

The challenge

The City of Milwaukee wanted to privatize its sewer utility operations in order to lower its customers’ rates and needed assistance with procuring the concession. Operations contracting had never been done for a city as large asMilwaukee and for as long as the proposed contract term (10+ years). It would be, and still is, the largest US water P3.

Procuring an operator
We structured and executed the competition process for a 10-year, $350 million O&M contract, including managing a competition between the world’s largest private operators.

Structuring the contract
The contract included treatment plant operations, collection system operation, deep tunnel storage system for CSO control, and bio-solids processing and marketing. We developed and evaluated responses to RFQs, developed the RFP and evaluation methodology, evaluated proposals, and assisted in negotiating the operating agreement. The contract also included an innovative collection of hypothetical “case studies” to help head off potential contract disputes.

The results
This contract guaranteed ratepayers savings of $145.8 million over the term of the contract and put IMG Rebel firmly on the map in U.S. utility public-private partnership (P3).