Public Private Partnerships

Public Private Partnerships (P3) are a tool to help the public sector leverage private goods, services or financing for public use.  These structures are growing in use throughout the country with more potentially on the horizon.  While these structures can be extremely beneficial to communities, there are many factors that need to be considered by all parties before entering into such projects.

P3s require a great deal of analysis and education in order to properly implement successfully.  P3s can range from simple Design-Build agreements to more complex Design-Build-Finance-Operate-Maintain contracts.  Each model requires consideration of various factors, including risk valuation and allocation, cost vs. value and potential impacts of public or private financing.  Further, P3 structuring is unique to each project based on the needs and goals of the parties.  All parties require a strong team of experienced professionals in order to fully deliver on the promise in a P3.

NP Law has extensive experience analyzing the relative merits of P3s for public clients in addition to structuring and implementing these tools to facilitate and enable the delivery of water and wastewater treatment and smart technology.  Our attorneys are regular speakers at conferences within the industry. The application of P3s continue to grow, as the law changes.  NP Law can help you through your P3 process, from determining the merits of a P3 to the legal and administrative process and the negotiation and preparation of final P3 documents.

Among Our Services:

  • Due diligence and analysis of laws and regulations for P3s in a given area
  • Preparation of schedule for P3 and all documents required to submit to various state and local governmental authorities
  • Development, analysis and review of costs versus value and risk allocation criteria for the parties
  • Analysis and review of financial and technical reports
  • Preparation of all proposal or bidding materials
  • Interface with state and local governmental authorities
  • Negotiation of final documents
  • Assistance with closing and implementation

Representative Experience:

  • BMUA/KKR: Our attorneys assisted the Bayonne Municipal Utilities Authority as it negotiated a 40 year Concession Agreement with Bayonne Water Joint Venture, LLC (a joint venture between KKR and United Water Operations Contracts, Inc.) at the end of 2012 for the operation, maintenance and management of the Authority’s water, wastewater, combined sewer overflow and stormwater systems. Under the terms of this public-private partnership, the private entity undertook the operation of all of the public systems, including the implementation of a comprehensive capital improvement program that resulted in upgrades to new water meters, the installation of a new SCADA system, upgrades to the GIS system, asset management programs and other required improvements that help to maintain the integrity and quality of the systems. The private operator is entitled to a specific revenue stream that will cover its costs for operations, fund capital improvements and satisfy its lenders and investors. In return for the agreement, the Authority retains ownership of the systems and land, receives an annual fee to address on-going Authority costs and had all of its long and short term debt retired. The agreement was the subject of many articles and received numerous awards, including the Partnership Performance of the Year at the 2012 American Water Summit.
  • Haddonfield Water System Sale:  Our attorneys were part of the team that worked with the Borough of Haddonfield to weigh the appropriate options relating to the sale of its water system and assisted in the development of bid specifications for the sale of the public utilities. In May, 2014, the Borough received a winning bid in the amount of $28,500,000 from New Jersey American Water. The sale was approved at a public referendum and Jong Nee assisted with the finalization and execution of the sale agreement and the completion of the transfer of the system to private ownership and operation.
  • Anaergia/Camden County Improvement Authority: We assisted Anaergia, a California-based company, on the negotiation of a Design-Build-Operate agreement with the Camden County Improvement Authority.  As part of the agreement Anaergia agreed to provide its technology for the design and construction of anaerobic digester for the county and provide for the operation of same to help create alternative energy for the county.

Contact Us

101 Eisenhower Parkway, First Floor
Roseland, New Jersey 07068
Phone: 973.358.2500