The Seafield Operating Contract

Scottish Water let a 30 year contract for design, construction and operation of waste water sites in Edinburgh and the Almond Valley and for trunk sewers and storm attenuation sites in Esk Valley.

The contract was set up under the Government’s Private Finance Initiative (PFI) as a means of delivering major capital investments without immediate recourse to public funding. The contract duration of 30 years is typical for PFIs.

Stirling Water won the contract for Seafield in 1998. Stirling Water is a joint venture between Thames Water Services, MWH, and M.J. Gleeson. On completion of the construction phase Thames Water were appointed as the operating contractor.

Upon the sale of Thames Water Services in November 2007 the operations contract transferred to Veolia Water.

Veolia Water is now both a member of the Stirling Water joint venture and the operating contractor.

Stirling Water has made an investment of more than £120m in the project and continues to provide funding for capital maintenance.

In addition to improving the process of waste water treatment, the waste water sites are required to meet European Waste Water Directive and The Water Environment Controlled Activities, Regulations effluent quality requirements.

The Seafield works effluent must also meet the bacterial standards related to European Bathing Water Quality.

Stirling Water and their operations contractor; Veolia Water are required to meet Scottish Water’s detailed performance standards and assumed the risks associated with design, construction, financing and operation of the assets.

Scottish Water collects wastewater charges from customers and pays for the provision of the services over the life of the contract. Scottish Water has retained responsibility for management of the sewers and most of the pumping stations and is required not to exceed certain treatment works influent quality parameters.

Upon completion of the contract period the assets will revert to the public sector.

Scottish Water’s PFI team closely monitor the performance of the Veolia Water’s operation of the Wastewater assets to ensure that both contractual and the associated regulatory standards are fully met.