KKR & Co. and United Water, a subsidiary of France’s Suez Environnement Co., have formed a partnership to a operate water and wastewater system in Bayonne, New Jersey.
The joint venture will become the operator under a 40-year agreement with the Bayonne Municipal Utilities Authority, according to a statement today. The partnership has paid $150 million to the authority and has agreed to spend another $157 million on the system over the life of the contract. New York-based KKR will fund 90 percent of the venture.
The agreement follows another innovative private-public deal between Veolia Environnement SA, the world’s biggest water company, and the city of New York, Maxime Serrano Bardisa, a London-based analyst for Bloomberg New Energy Finance, said today in an interview.
“It’s too early to say whether it’s a trend, but the market is definitely trying to find new ways of financing infrastructure and supplying water more efficiently,” he said. “The New York example is one, and in Bayonne is another.”