American Water Services awarded $336 million contract for water treatment plant in Arizona

American Water Services signed a $336 million contract with the City of Phoenix to design, build and operate the new Lake Pleasant Water Treatment Plant in Arizona.

Aug 27th, 2003

VOORHEES, N.J., Aug. 27, 2003 -- On August 15, 2003, American Water Services (AWS) signed a $336 million contract with the City of Phoenix to design, build and operate the new Lake Pleasant Water Treatment Plant in Arizona. The plant will serve the rapidly developing northern areas of Phoenix.

The Phoenix City Council approved the contract award, marking the city's first venture into municipal water production through a public-private partnership. " We are proud to be able to bring quality, efficiency and value to the residents of Phoenix while partnering with the City of Phoenix to provide a reliable supply of high quality drinking water at a reasonable cost," said Walter Lynch, President of AWS.

To meet current and future water demands the plant will be built in phases. The first phase will have an 80 million gallon per day capacity, serving approximately 400,000 households. Additional capacity can be added in the future to allow for growth in the region and could ultimately reach 320 million gallons per day.

As the prime contractor, AWS will provide project management services and be responsible for operating services. AWS has retained Black & Veatch Construction, Inc. and McCarthy Building to design and build the water treatment plant. Groundbreaking is planned for July 2004, with first-phase operations to begin February 2007.

"By utilizing the design-build-operate project delivery approach, we expect to secure a highly efficient state-of-the-art water treatment plant, with substantial benefits for our customers, including timely, efficient, and cost-effective project scheduling, optimal risk allocation and long-term facility operations, and maintenance efficiencies and cost savings," said Michael Gritzuk, City of Phoenix Water Services Director.

American Water, a part of RWE's water division, serves 20 million customers in 27 states, 4 Canadian provinces, Puerto Rico and Chile. More than 8,000 dedicated employees provide high quality water, wastewater and other related services. RWE's water division is the third largest water and wastewater Services Company in the world. Additional information may be found on the Web at www.amwater.com

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