My Local Veolia Projects

The Past & Future of Middletown's Water & Wastewater

The Borough of Middletown, Pennsylvania, located adjacent to Harrisburg, the State Capital, is a growing town with a population of approximately 9,400. The water and wastewater systems currently serve 2,700 customers as well as providing services to two adjacent communities.

In 2014, the town structured a long-term concession/lease with KKR and Veolia (formerly United Water) that (i) will provide the appropriate and necessary management, operation and maintenance services, and (ii) will also provide qualified design and construction services for future improvements to the system. From a financial perspective, the Borough will receive both upfront and annual lease payments from the concessionaire. The upfront payment will be used to retire existing debt, eliminate pension liabilities and compensate the Borough for recent capital improvements to the system. KKR/Veolia will be granted the exclusive right to operate the system and to collect water and wastewater revenues through the 50-year term of the concession.

A key component of the agreement is the $1.63 million in infrastructure improvements mandated over the first 5 years. These improvements will include sewer and water system pipeline replacement, system valve replacements, storage tank painting, elimination of chlorine and upgrades to control systems.