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Financing of Water Desalination Plant

  Location: USA

 

Client: Tampa Bay Water

  Year: 2002-2004

In May 2002, Salomon Smith Barney (now Citigroup) served as Sole Managing Underwriter to Tampa Bay Water for the issuance of its $108,390,000 Utility System Variable Rate Revenue Bonds, Series 2002 to finance the design, engineering, acquisition, construction and installation of a 28.75 mgd seawater desalination facility. The financing culminated nearly three years of project development by Salomon Smith Barney’s banking team, including the competitive selection of the private developer/operator of the project, negotiation of all construction and operating agreements, obtaining private activity bond allocation and all necessary permits for the transaction, as well as developing and implementing the credit rating and credit enhancement strategies for the financing.

In November 2004, Tampa Bay Water approved a 20-year Operation, Maintenance and Management Agreement Services Agreement with American Water-Pridesa, LLC, as successor to Covanta. The desalination plant was contractually completed in January 2008 after successfully completing acceptance testing in November 2007. The desalination facility currently operates as a critical, drought-proof element of the combined water supply system used to meet the water demands of Tampa Bay Water’s member governments.