IIR symposium Oplossingen voor Watermanagement in de industrie :15 - Evides : DBFO Contracts

Transcription

1 IIR symposium Oplossingen voor Watermanagement in de industrie :15 - Evides : DBFO Contracts

2 Content DBFO Contracts: Introduction Outsourcing Examples

3 Drinking Water and Industrial Water supply ROTTERDAM ANTWERPEN

4 Evides Industrie Water - Water Operator Evides founded via a merger in the year 2004 (more than 100 years history in drinking water production). Evides offers innovative, cost effective & reliable custom made water solutions in DBFO and utility services for the chemical industry. Evides operates on day to day basis both process water and waste water treatment units with focus on: High quality treatment and water quality; Balance between demand and supply / (multi) Water source; Long term reliable supply of (water) services; Beneficial services at reasonable costs. Providing the highest possible benefits to its customers (Shell, DOW, AKZO, DuPont, Exxon, BP, etc), while providing economic development, environmental quality (the full water-value chain) and improving wellbeing for the society (sustainability).

5 Vision & mission Evides IW Upstream Midstream Downstream Transportation Production Production IW, demi, desti & agri water Transportation & infrastructure Marketing, sales, supply & DBFO Benelux & NW-Europe Selectively beyond EIW activities EDW activities Wastewater Minimizing cost-of-supply commodities Customised / additional services / maximizing value across complete value chain raw water once-through added value design / built / finance / operate long-term relation industrial water, desti wastewater DBFO client-customized / DBFO industrial water, demi wastewater reuse

6 The importance of the water utility Water quality (in control of process & technology) Environment/ Legislation Supply security (always) Availability (right amount & quality) Reliability (contractual & operational) Financial predictability (no surprises) Proven Quality of the applied technology

7 Water Value via (Re)use Technology Process Water Industrial customer Boiler feed Water Cooling Water Waste Water

8 Definition: Outsourcing? Uitbesteding, soms aangeduid met de Engelse term outsourcing of het vernederlandste outsourcen, is de uitvoering van een proces als gevolg van een strategische keuze door een organisatie, om één of meer bedrijfsactiviteiten uit te besteden naar een dienstverlenende onderneming of toeleverancier. Outsourcing is a collaboration between companies, while maintaining own identity and responsibility, in order to realize a project on the basis of clearly addressed task and risks. These agreements are compiled and agreed upon in a DBFO contract (Design, Build, Finance & Operate).

9 Industrial Outsourcing A Company decides to outsource in order to focus on its core business Outsourcing is always a management (strategic) decision The company selects supplier(s) with added value in the outsourcing collaboration Both companies are rewarded via rendered added value monitoring via KPI s Fundamentals success: trust between partners, transparency and individual quality of the partners Maatwerk project

10 Pro and cons of DBFO Pros: Financial savings Focus on Core business Efficiency Risk sharing Innovation Effective operations (financial incentives) (Time) management Quality assurance Cons: Dependence of third party Economies of Scale It is said Money is the only driver Decline of operational Knowhow Not innovative (Risk averse) More attention paid for contractual matters than for technology/ people

11 Key success DBFO: Customer relation Trust Win-win situation Future plan + see + want + act Collaboration Professional transparency

12 Structuring the DBFO agreement Points of Attention in business case: Investment Scope Battery limits (TOP) Site services (SLA) Operational (KPI) Guarantees (KPI) Monitoring Risk management Communication TCO (operation/ ownership)

13 DBFO contract : Design, Build, Finance and Operate Customer +Focus on core activity +Finance DBFO contract SPV Contract management Finance Legal structuring Risk management +Extra liquidity (no CAPEX) +Fixed pricing +Fully predictable cost + Budget control EPC Project Management Engineering Procurement Technologies / OEM Civil construction E&I&M construction O+M Operational Excellence Online process monitoring Process optimization Trouble shooting Administration Invoicing

14 Alternatives to a full DBFO outsourcing? Alternatives to full service contracting? Of course: the supply of a installation with a contractual performance guarantee. The company has to finance the installation, but the supplier is responsible for operational support and performance over time. Some examples of other concepts: DB: Design & Build; BOO: Build Own Operate of BOOM: Build Own Operate Maintain; BOT: Build Own Transfer; Capital lease.

15 Dow Chemical - Terneuzen PW Plant WWTP Deco plant Cooling Tower Water Intake

16 Dow - Evides DBFO contract Customer: Dow Terneuzen SPC: Evides & EPC Partner EPC: Several OEM s within EPC Partner O & M: Evides

17 Water sources and capacities 2007

18 PPP Houtrust en Harnaschpolder

19 PPS AHR Harnaschpolder/ Houtrust HOOGHEEMRAADSCHAP VAN DELFLAND DBFO Banken DELFLUENT BV EPC O&M BAHR DELFLUENT SERVICES BV

20 Innovation : Effluent Re-Use Harnaschpolder Demo site effluent re-use

21 Resume : DBFO Trust Win-win situation Future plan + see + want + act Collaboration Professional transparency

22 Some reference (DBFO) plants of Evides (1968) WTP process water Dow Chemical - Terneuzen (NL) 8 Mm 3 /yr (1988) WTP industry water SABIC Plastics - Bergen op Zoom (NL) 6 Mm 3 /yr (1992) WTP industry water De Wranghe (NL) 5 Mm 3 /yr (1995) WTP industry water Lamb Weston - Kruiningen (NL) 2 Mm 3 /yr (1995) WTP industry water Koegors (NL) 0.2 Mm 3 /yr (1997) WWTP Sloe - Vlissingen (NL) 50,000 p.e. (2000) WTP demi water Dupont - Dordrecht (NL) 1,2 Mm 3 /yr (2000) WTP demi water Dow Chemical - Terneuzen (NL) 10 Mm 3 /yr (2001) WTP demi water (reuse) Cargill - Sas van Gent (NL) 0.7 Mm 3 /yr (2002) WTP demi water Dow Chemical - Hamburg (D) 8 Mm 3 /yr (2004) WWTP Airport Schiphol - Amsterdam (NL) 45,000 p.e. (2004) WWTP Delfluent - The Hague (NL) (Joint-venture, Delfluent) > 1,300,000 p.e. (2006) WTP Demi water Air Liquide/Shell - Rotterdam (NL) 8 Mm 3 /yr (2008) WWTP Oosterhorn - Delfzijl (NL) (Joint-venture, North Water BV) pe (2009) WTP Demi water Yara - Sluiskill (NL) 5 Mm 3 /yr