United Water and KKR Begin Utility Partnership with City Of Bayonne, NJ

United Water and KKR Begin Utility Partnership with City Of Bayonne, NJ

    Today we announced the initiation of our partnership with KKR for water and wastewater system operations in the City of Bayonne, NJ, using United Water’s award winning new ‘Solution’ model to address water infrastructure needs. This brings new private equity investment to address the water challenges that many municipalities face today. Our CEO, Bertrand Camus, first announced this innovative model at 2012 Clinton Global Initiative Annual Meeting, where it was recognized as a featured innovation. United Water and KKR’s partnership with Bayonne was also recognized as Partnership Performance of the Year at the 2012 American Water Summit. Read more about “United Water ‘Solution’: Investing in America’s Future” As a part of this joint venture, we will acquire a 40-year water and wastewater concession from the Bayonne Municipal Utilities Authority (BMUA). Under the contract, BMUA will continue to maintain control of rates charged to customers, the ownership of the water and wastewater system and oversee compliance adherence and customer service performances. Our initial payment of $150 million to the BMUA will be used to eliminate the BMUA’s existing debt and improve its finances. The joint venture has further committed to funding another $157 million into the system over the life of the contract. KKR, which made the investment through its infrastructure fund, will fund 90% of the joint venture with United Water. Our innovative ‘Solution’ comes at a critical time when numerous municipalities across the country are struggling with municipal debt. The investment in Bayonne’s infrastructure will lead to improved service reliability and water quality while maintaining rate stability. The funds will be used to upgrade water systems...

U.S. aging water infrastructure and what it means for our economy

    Clean water is fundamental to our economy and our health. Sustainable source of drinking water is critical not only for survival but also for our long-term economic growth. Although we usually do not associate the value of clean water to number of jobs, these two are very closely linked. According to a report released by The American Society of Civil Engineers (ASCE) in 2011, United States faces a serious water challenge that directly threatens jobs and economy. Here are some sobering facts from the report: Aging water infrastructure will cost U.S. businesses $147 billion over the next decade. Unless new investments are made, by 2020 unreliable and insufficient water infrastructure will cost the average American household $900 a year in higher water rates and lower wages. American businesses can expect an additional $147 billion in increased costs and the economy will lose 700,000 jobs by 2020. The report also identifies three sectors of the economy that will suffer the most if our water infrastructure is not improved in the near future. These sectors are: Retail Restaurants and bars, and Construction businesses While there is no quick fix to address our nation’s water challenge, adopting sustainability practices such as using efficient equipment changes, adopting green infrastructure and conserving water everyday can help with reduce the impact of this...