BOO and BOOT agreements can finance water infrastructure with no upfront capital investment

There’s a growing need to expand or upgrade water and wastewater treatment infrastructure, but major projects often don’t get off the ground due to budget limitations. There is an alternative: Build-Own-Operate and Build-Own-Operate-Transfer contracts offer a financing solution that can address this common problem.

What Is a BOO or BOOT contract?

A Build-Own-Operate (BOO) contract is a long-term financing model used to finance water and other infrastructure projects. With a BOO contract, a private service provider funds, designs, builds, owns, and operates the infrastructure on the client’s behalf for the term specified in the agreement. The client pays a set price for water produced or services rendered.

Once the contract comes to an end, the two parties can renew the existing contract, negotiate and draw up a new one, or terminate it. A client can also opt for a Build-Own-Operate-Transfer (BOOT) contract, where ownership of the infrastructure passes to the client when the contract comes to an end.

This approach takes away the headache associated with managing water and wastewater projects, and gives municipalities and developers peace of mind knowing that this vital service is being taken care of by a team of water treatment professionals for a monthly water or wastewater cost. AUC’s hassle-free approach to water management combines our industry expertise with a commitment to operational excellence.

Engineer Conducts Inspects at a Treatment Plant

Why Choose AUC’s Build-Own-Operate Contracts?

How exactly can you benefit by using an AUC BOO/BOOT contract? Here are some of the reasons one of these agreements can prove to be the best option for infrastructure projects.

  • Efficiency: AUC’s BOO contracts revolutionize water and wastewater management by seamlessly integrating our expertise into your operations. There’s no need to assemble, train, and retain a skilled workforce. AUC’s turnkey solutions optimize efficiency and minimize operational burdens. With a BOO contract, clients receive a product of guaranteed quality based on predetermined needs and the specifications outlined in the agreement, and only pay for the water they use or the volume of wastewater treated.
  • Comprehensive water and wastewater solutions: From the initial design to daily operations and plant maintenance, AUC takes care of it all. Our financing agreements encompass the complete life cycle of water and wastewater treatment plants, ensuring a comprehensive approach to your unique needs.
  • Operational excellence: AUC’s decades of experience and commitment to operational excellence work to your benefit. Our skilled professionals manage all aspects of day-to-day operations, providing you with peace of mind and allowing you to focus on managing your core business activities.

Key Features of Build-Own-Operate Contracts

How do BOO and BOOT contracts work? From planning to commission and operation, AUC handles all of the details.

  1. Design and implementation: Before undertaking a project, AUC will collaborate with you to assess your requirements and design a treatment plant that best suits your needs. AUC funds the construction of the plant, and our experts oversee the implementation, ensuring a smooth integration process. A unique aspect of our approach is the consideration for decentralized treatment solutions. These decentralized plants, sited close to the point of use, eliminate the need for extensive distribution and collection pipelines, providing a more sustainable and efficient alternative. AUC can offer advice and guidance on what permits will be required, and how long it will take to get them. For wastewater treatment plants, AUC can help predict what the discharge limits will be.
  2. Day-to-day operations: Once construction is complete, AUC takes ownership of the facility and operates it on behalf of the client for the duration of the contract. Our skilled professionals take charge of daily operations to ensure that the infrastructure continues to meet performance standards. With decentralized treatment, AUC minimizes operational risks associated with centralized systems, providing efficient and targeted water treatment solutions.
  3. Proactive maintenance: Because the risks associated with ownership and operation are transferred to AUC for the duration of the contract, it’s in our best interest to manage and maintain the facility efficiently to ensure a return on our investment. AUC’s build-own-operate agreements include regular maintenance schedules to keep your plant operating at peak efficiency at no additional cost to you, fostering the longevity and reliability of both centralized and package wastewater treatment plants.
  4. Regulatory compliance: Ensuring that water and wastewater quality complies with environmental, health, and safety standards can be a nightmare, especially for those without specific experience. We handle the complexities of regulatory compliance, ensuring your operations meet all standards and regulations.
Water Treatment Plant for Commercial Businesses
Modular Wastewater Treatment Solution

FAQs About Build-Own-Operate Contracts

What is the primary advantage of AUC's Build-Own-Operate and Build-Own-Operate-Transfer contracts?

AUC’s BOO and BOOT contracts offer a turnkey solution, seamlessly integrating our expertise into your water treatment and wastewater operations. This allows you to optimize efficiency and minimize operational burdens.

Who qualifies for a BOO agreement?

BOO contracts are typically used to finance public-private partnerships with government or municipal entities. However, they can also be used to finance water and wastewater infrastructure required by private commercial or industrial clients to improve their operations without capital outlay or financial risk.

Does AUC handle the permitting process?

We don’t apply for the discharge permits, but we work with engineers who do. When developers are looking for a permit and would like guidance, AUC can help them predict permit requirements, what discharge limits will be imposed, and how long the process will take.

The permit application process is complex and often lengthy. Any snags can delay a plant going online, so the timing of permit approval is a key consideration.

What kind of maintenance is covered in AUC's BOO and BOOT agreements?

The maintenance covered in AUC’s contracts typically includes routine and preventive maintenance tasks to ensure the continuous and efficient operation of treatment plants. This may involve regular inspections, equipment servicing, cleaning, and calibration of systems. Additionally, BOO contracts cover emergency repairs and troubleshooting to promptly address unforeseen issues. The goal is to maintain optimal performance, compliance with regulations, and longevity of the treatment infrastructure throughout the contract period. There are no additional unexpected costs or surprises in a BOO or BOOT contract: The client only pays for the water or wastewater treated.

Can a plant built under a BOO agreement be purchased in the future?

Yes, once the term of the BOO contract has been completed, a client can purchase the plant outright for a negotiated fee. This can also be factored into the original agreement, which is then known as a Build-Own-Operate-Transfer (BOOT) contract. With a BOOT contract, ownership of the plant is transferred to the client at the end of the contract period. AUC also offers treatment plant leases and direct-sell options, providing several flexible financing arrangements to get your project done.

Partner With AUC Group for Operational Excellence

Based in Houston, Texas, AUC Group’s Build-Own-Operate agreements redefine water and wastewater management. Elevate your operations, reduce operational stress, and ensure long-term efficiency with AUC as your trusted partner. Contact us today to explore how our BOO and BOOT agreements can transform your water and wastewater treatment processes.