Project Director of team that is currently undertaking a pricing review for Watercare Services Limited, New Zealand’s largest water and waste organisation. With over $7bn in assets, Watercare wants to understand how it would need to manage its businesses and pricing structures different if it was to become a regulated business. The project involves providing advice on the most appropriate pricing methodology and structure and also the determine an appropriate weighted average cost of capital (WACC) to accurately value Watercare’s current and future capital projects. Our work included developing a WACC range covering regulated and non-regulated activities and assets.
Project Director for a five-month study on to determine how Hamilton City Council, Waikato District Council and Waipa District Councils should manage water, wastewater and stormwater services across the sub-region. The councils currently have about $1bn in assets and are planning to spend another $750m over the next 10 years. Three options investigated were retaining the status quo, developing an enhanced shared services model and forming a council controlled organisation (CCO). We identified savings of about $470 million over 28 years by adopting the CCO model.
Member of technical, economic and commercial consortium that established the 20-year level of capital and operational expenditure required to deliver water supply, wastewater and stormwater infrastructure and services the Auckland region for the Auckland Regional Council and Network Operators, New Zealand. Paul was the Project Director for the team that identified a significant funding gap over the next 20 years for capital expenditure (NZ$7 billion) and operational expenditure (NZ$800 million per annum).
Project Director of a team that analysed how the Water Division of Rodney District Council, New Zealand, with over NZ$300 million in assets, could be run on a more commercial basis. The project required long-term financial modelling of the water business, reviewing the economic principles that should underpin sustainable pricing policies and business processes and procedures for maintaining and renewing water assets, and determining the key issues if the Council was to adopt a different model for managing these assets.
Co-managed the negotiations between Metrowater and Auckland City, New Zealand to develop a new Operational Agreement relating to stormwater and the combined wastewater and stormwater networks. The parties forecast that NZ$200 million would be spent on this type of infrastructure over the next 10 years.
Team member that developed a water, wastewater and stormwater capital evaluation methodology and process for Melbourne Water, Australia, including consideration of economic, environmental and social factors.
Co-led a team that analysed Melbourne Water, Australia, annual corporate strategies and water, wastewater and stormwater capital expenditure proposals (A$250 million annual capital expenditure) based on economic and non-economic criteria.