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The importance of the water utilityWater quality (in control of process & technology)Environment/ LegislationSupply security (always)Availability (right amount & quality)Reliability (contractual & operational)Financial predictability (no surprises)Proven Quality of the applied technologywww.evides.nl

Water Value via (Re)use TechnologyProcessWaterIndustrialcustomerBoilerfeedWaterCoolingWaterWasteWaterwww.evides.nl

Definition: Outsourcing ?• Uitbesteding, soms aangeduid met de Engelse term outsourcingof het vernederlandste outsourcen, is de uitvoering van een procesals gevolg van een strategische keuze door een organisatie, om éénof meer bedrijfsactiviteiten uit te besteden naar eendienstverlenende onderneming of toeleverancier.• Outsourcing is a collaboration between companies, whilemaintaining own identity and responsibility, in order to realize aproject on the basis of clearly addressed task and risks.• These agreements are compiled and agreed upon in a DBFOcontract (Design, Build, Finance & Operate).www.evides.nl

Industrial OutsourcingA Company decides to outsource in order to focus onits core businessOutsourcing is always a management (strategic)decisionThe company selects supplier(s) with added value inthe outsourcing collaborationBoth companies are rewarded via rendered addedvalue monitoring via KPI’sFundamentals success: trust between partners,transparency and individual quality of the partners“Maatwerk project”www.evides.nl

Pro and cons of DBFOPros:• Financial savings• Focus on Core business• Efficiency• Risk sharing• Innovation• Effective operations(financial incentives)• (Time) management• Quality assuranceCons:• Dependence of third party• Economies of Scale• It is said Money is the onlydriver• Decline of operational KnowhowNot innovative (Riskaverse)• More attention paid forcontractual matters than fortechnology/ peoplewww.evides.nl

Key success DBFO: Customer relationTrustWin-win situationFuture plan+ see+ want+ actCollaborationProfessionaltransparencywww.evides.nl

Structuring the DBFO agreementPoints of Attention in businesscase:• Investment Scope• Battery limits (TOP)• Site services (SLA)• Operational (KPI)• Guarantees (KPI)• Monitoring• Risk management• Communication• TCO (operation/ ownership)www.evides.nl

DBFO contract :Design, Build, Finance and OperateCustomer+Focus on coreactivity+FinanceDBFO contractSPVContract managementFinanceLegal structuringRisk management+Extra liquidity(no CAPEX)+Fixed pricing+Fully predictablecost+ Budget controlEPCProjectManagementEngineeringProcurementTechnologies / OEMCivil constructionE&I&M constructionO+MOperational ExcellenceOnline process monitoringProcess optimizationTrouble shootingAdministrationInvoicingwww.evides.nl

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

Dow Chemical - TerneuzenPW PlantWWTPDeco plantCooling TowerWater Intakewww.evides.nl

Dow - Evides DBFO contractCustomer:Dow TerneuzenSPC:Evides & EPC PartnerEPC:Several OEM‘swithin EPC PartnerO & M: Evideswww.evides.nl

Water sources and capacities 2007www.evides.nl

PPP Houtrust en Harnaschpolderwww.evides.nl

PPS AHR Harnaschpolder/ HoutrustHOOGHEEMRAADSCHAP VAN DELFLANDDBFOBankenDELFLUENT BVEPCO&MBAHRDELFLUENT SERVICESBVwww.evides.nl

Innovation : Effluent Re-Use HarnaschpolderDemo site effluent re-usewww.evides.nl

Resume : DBFOTrustWin-win situationFuture plan+ see+ want+ actCollaborationProfessionaltransparencywww.evides.nl

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) 25.000 pe(2009) WTP Demi water Yara - Sluiskill (NL) 5 Mm 3 /yrwww.evides.nl