Reinvesting in Public Water

As investments in infrastructure and resilience see a resurgence in North America and Europe, public water is seeing renewed political attention.

After decades of limited investment, the backlog of modernization projects has grown, and major financing packages have been discussed and approved recently.

As an example, the U.S. Bipartisan Infrastructure Law will authorize $550Bn in new spending, that includes $55Bn on water initiatives over the next 5 years.

The combiend funding pools in the Bipartisan Infrastucture Law related to water total approximately $55 bullion in increased spending over years. Source: Infrastructure Investment and Jobs Act of 2021.

Out of the different funded programs, the Drinking Water State Revolving Fund will be allocated $30Bn over the next 5 years, which is more than the previous 25 years combined ($25 billion). The Clean Water State Revolving Fund will see a doubling of the funds allocated.

Funding of the Drinking Water and Clean Water State Revolving Funds will increase nearly five times and two times, respectively, over prior levels. Source: Association of Metropitan Water Agencies; Association State Drinking Water Administrators: Drinking Water State Revolving Fund (DWSRF). Overview, issues, and legislation, CSR.

In Europe, a recent OECD report points projected investment needs across member states for water supply and sanitation from 2020 to 2030. The aggregate figure for the 28 member states amounts to €289Bn, with sanitation representing the lion’s share of the total additional expenditures.

Figure 3.5: Total cumlative additional expenditures by 2030 for water suppy and sanitation. Souce: OECD analysis based on European Commission and Eurostat data.

Comparing the additional expenditures for water supply and sanitation with the current baseline shows the additional level of effort. On an annual basis, all countries will need to increase annual expenditures by an average of about 40%.

Figure 3.7: Per Annum additional expenditures by 2040. BAU + Compliance + Efficency vs. baseline.

Eliminating lead pipes, minimizing leakage, energy consumption, phosphorus and nitrogen wastewater discharge are some of the highest profile challenges that need to be addressed quickly. All this while maintaining uninterrupted utilities services at an affordable cost, with a workforce that is increasingly difficult to attract and retain.

The need for water system upgrades is unprecendented, as much of the US water and wastwater infrastructure was built in the 1970s and 1980s.

Indeed, work on water facilities and networks is often drudging and dangerous, while work processes themselves have undergone limited evolution. Poor technical data records of the actual status of facilities often leads to additional work exposure. All of this results in limiting the appeal of these roles to the younger generation.

Many companies have launched programs to reverse this trend and to catch up on the modernization backlog. Yet, most of the time, the foundation layer is missing: no one has a common understanding of the as-built assets status. With outdated assumptions, sophisticated approaches can only lead to subpar results.

“garbage in, garbage out”

Moreover, generating data without the ability to easily consume it or ensure that it stays current means that digital initiatives often stall. End users lose patience with ever-longer implementation times, complex training, poor usability….

That’s why we focus on ONE fundamental industry need at Samp: setting up an “always fresh” view of as-built facilities in days, with little input data. In doing so, we re-enable sound investment decisions based on an up-to-date understanding of industrial assets throughout the chain of command.

Samp.ai: Reinvesting in Public Water

Such transparency restores trust among stakeholders, while enabling faster and more robust project estimation, safer execution, efficient handover, and improved maintainability.

Because investment in public water infrastructure is vital, it is important to ensure that the money spent on it has the highest possible impact.

Want to discuss these topics in more detail and take action?

Samp.ai: BIMWORLD 2022

Let’s meet in person at BIM World in Paris where Samp will be present on the SUEZ booth (F91) on April 5th & 6th. As always, you can make a virtual appointment with us at any time!


Sources:

McKinsey (2022), The US Bipartisan Infrastructure Law: Reinvesting in water

https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-us-bipartisan-infrastructure-law-reinvesting-in-water

McKinsey (2021), US water infrastructure: Making funding count

https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/us-water-infrastructure-making-funding-count

OCDE (2020), Financing Water Supply, Sanitation and Flood Protection : Challenges in EU Member States and Policy Options, OECD Studies on Water

https://doi.org/10.1787/6893cdac-en.

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Stéphane Evanno

Chief Strategy & Development Officer

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Scanning Services

Extend the reach of your scanning services by delivering your scanning campaigns on a purely web-based portal, designed from the ground up for the industry. Leverage your surveying and topographic expertise to consolidate valuable field data into a single viewer: maps, aerial and drone orthophotos, laser scans, photogrammetry or videogrammetry, and georadar can now be securely viewed, updated and shared in one place.

Engineering services, EPC

Upscale the value of your engineering services offering by delivering digital twin as a service, powered by your qualified staff. Improve customer retention with longer-term contracts that ensure continuous synchronization of technical documentation with the as-built facility. Accelerate or automate the production of technical deliverables when working on brownfield projects with little or no existing input information.

CONTRACT OPERATORS

When preparing a quote for operating a facility on behalf of the owner, be sure to maximize that short window of time by taking advantage of as much technical information as possible. Turn your initial site visit into a unique opportunity to capture the current condition of the facility. Make a bid that will beat the competition with an already operational digital twin, while giving you increased confidence in your future service contract margins.

OWNER OPERATORS

Whether you manage a single plant or a fleet of sites, whether your facilities are on-shore or off-shore, we can help you build and maintain a twin within days. Major milestones in a plant’s lifecycle, such as handover from EPC to operator, change of ownership, revamping or decommissioning, provide an opportunity to implement a safer and more efficient way of working with your extended teams, regardless of the quality of your technical data.