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#drought-insurance-procurement

Issues, solutions, and case studies for drought-insurance-procurement

Found 4 nodes with this tag: 0 issues · 1 solution · 3 case studies

Solutions 1

#00196Large-scale desalination sized as drought insurance

Seawater reverse osmosis gives cities a rainfall-independent supply. It works when sized against permanent aridification and framed honestly as insurance with flexible operating triggers; it fails financially through drought-panic procurement and rigid take-or-pay contracts.

region

Case studies 3

Poseidon Water with San Diego County Water Authority · since 2015 · Region

The Carlsbad plant (December 2015) is the largest SWRO facility in the Western Hemisphere at 50 MGD, built for about $1 billion under a 30-year take-or-pay purchase agreement with San Diego County Water Authority. It de…

Plant capacity50MGD
Cost of water in 2025~3,500USD per acre-foot

$1B · Private finance repaid through a 30-year take-or-pay purchase agreement

Arnaud Gissinger

Victorian Government with AquaSure PPP consortium · since 2012 · Region

The Victorian Desalination Plant was procured at the height of the Millennium Drought via a PPP with AquaSure consortium. Capital cost blew out to ~A$4bn; on completion in 2012 it went straight into standby and delivere…

Capital cost~4billion AUD
Availability payment regardless of orders~608M/yr (~A$18-19bn over 27 years)AUD

A$4B · Public-private partnership with fixed availability payments of ~A$608M/yr over 27 years

Arnaud Gissinger

Israel Water Authority with private BOT concessionaires · since 2005 · National

Israel built five-plus mega SWRO plants from 2005 onward, now supplying roughly 80–90% of municipal freshwater. Competitive BOT tenders with private concessionaires drove world-record low prices (Sorek B at ~$0.41/m³).…

Share of municipal freshwater from desalination~80-90%% of supply
Record tender price (Sorek B)~0.41USD/m3

Competitive build-operate-transfer tenders with private finance

Arnaud Gissinger

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