Sewage Treatment Plant ZAGREB

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  • Project Title

  • Country

  • Project Year

  • Project Value

  • : Sewage Treatment Plant ZAGREB

  • : Croatia

  • : 1999 - 2000

  • : 200 MI EUR

  • Type of Services Provided:

    • Engineering and economic consulting (BOT/Concession)
    • Management advisory
    • Decision support, capacity development
    • Technical and Financial Value Engineering

    Detailed Description of Project:

    The construction of a new wastewater treatment works with ca. € 200 m investment, designed to serve a population equivalent of 1.5 million, was due to begin soon in the Croatian capital, the City of Zagreb. A German-led joint venture was set up to complete raising loans for its contract to finance, design and build the DEM 405 m (Kuna 837 m) treatment works, and then operate it for 25 years.

    The facility is planned to have a maximum inflow capacity of 37,800 m³/h with a daily biological oxygen demand of 90,000 kg. It will incorporate activated sludge secondary treatment, followed by anaerobic sludge digestion. The joint venture (SHW and RWE) began its activities in May 2001 with a construction to last six years for a stage wise erection of the plant with a capacity of 1 m population equivalents.

    A consortium with Prof. Dr. Dr. Rudolph GmbH - CEEM - was chosen by the Deutsche Bank AG (the Technical Arranger) as Technical Advisors and asked to deliver a risk evaluation of the project. Later, the KfW took over this project.

    CEEM was hired to elaborate information documents and present, explain, reconcile the PSP model, project development approach, technical concept and financial risks before the banks, the municipality and the staff of the municipal wastewater utility for decision support and initial capacity development.

    This task includes the controlling of technical design of the sewage plant, the main sewers and an access road and a bridge and the cost calculation to check all input data and outputs of the final business plan. One of the main topics was the "concession" contract and its price formula, including price indexation and price review, the latter accompanied by an appendix defining the process of price regulation and dispute settlement.


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