What is Clean TeQ Water’s BOO Service Offering?
Clean TeQ Water offers ‘water as a service’ as an alternative to our traditional equipment sales model. Water as a service means we treat the water to the required specifications and the customer pays a variable fee only. The goal of this model is to simplify life for the customer who can focus on its core business while we take care of the design, manufacturing, construction, and operation of the plant.
In the water sector, the most common service-based delivery model is Build, Own and Operate or ‘BOO’. There are many variations on the BOO model with other acronyms in which the activities and responsibilities between the parties and over time may vary. In BOO the investment and operation of the plant are central elements of our offer. Our preferred BOO pricing structure consists of a fixed fee for each day the plant operates to specification, but we are happy to discuss variations to this model.
Who Qualifies for BOO?
To qualify for BOO offer from Clean TeQ Water, a prospective customer and project need to meet the following criteria:
- BOO projects can transfer the perceived technology risk and operational responsibilities to the Clean TeQ Water, but not the customer’s credit risk. Uncertainty about a customer’s ability to pay the required fees over prolonged periods of time will make a BOO model unfeasible. Suitable BOO customers have stable and positive annual cash flows, are governments in stable regions, and/or are part of larger financially strong entities.
- The customer must have a guaranteed need for water treatment over multiple years. If the customer is uncertain about the need for ongoing water treatment for the term of the contract, a BOO set-up is not possible. A customer cannot suspend a BOO contract because needs have changed, for example because the factory needing water treatment unexpectedly shuts down. Also, a longer total required treatment period is more attractive for both parties, because the initial investment can be spread-out over a longer period, with a lower limit of around 5 years.
In certain cases, Clean TeQ Water might have additional project or customer specific reasons not to offer a BOO model. This usually is the result of a combination of factors related to – for example – risky locations, uncertain local regulations, site access concerns, and/or projects being too small. We will clarify early in the discussion whether we are able to offer BOO and under which terms.
The goal of BOO is to meet your water needs with minimal hassle, without the need for you to become a water treatment expert. This allows you to use your scarce engineering resources to focus on your main business, instead of managing the construction phase or operating water treatment facilities. The resources and expertise required from the customer should be minimal when Clean TeQ builds, owns and operates the plant.