Case study: Izmit domestic and industrial water supply project responds to a massive earthquake in Turkey

Immediately following an earthquake measuring 7.4 on the Richter Scale hit Izmit, Turkey in 1999, Thames Water shut down the local water treatment plant for damage inspection—and amazingly, within two hours—the plant restarted and again began supplying bulk water to the region. This case study addresses the role of private investment and public/private partnership in the water industry.

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At 3 a.m. on August 17, 1999, an earthquake measuring 7.4 on the Richter Scale hit the Izmit area of Turkey. Official figures show that more than 17,000 people lost their lives, although the true number is likely higher given the proportion of collapsed buildings, which could not be cleared for several weeks.

Immediately after the earthquake, the water treatment plant was shut down to establish that no major damage had occurred. Within two hours, bulk water supply was restored to the region.

By the time Thames Water's UK offices opened on the morning of August 17, the company's event management processes had been set in motion. The event team, headed by the managing director of international operations, was in place to coordinate all UK support to Turkey. The local event team in Izmit also was established with its first task to account for all of Thames Water's staff of 82.

Once the scale of the disaster had become clear, it was obvious that hundreds of thousands of people had been made homeless, temporarily or permanently. Simply supplying water to occupied properties was clearly not enough. Thames Water recognized its responsibility to ensure that good quality water was delivered to the people who needed it. Temporary filling points for tankers and containers were set up at the water treatment plant, and once communication of these arrangements had been made, the site received a constant stream of vehicles taking water to the homeless. In addition, Thames Water set up a regular delivery round of containers of water to small, unofficial communities, which would not otherwise have had access to clean water.

Within three days, 15 distribution technicians from London had arrived in Izmit and were working with local municipal organizations. Their work ranged from repairing bursts on the municipality's distribution systems to helping establish the tent cities, which would become home to tens of thousands of people for many months. Water supply was connected to these campsites and showers, toilets, washing machines and standpipes installed.

Understanding the Izmit domestic and industrial water supply project
The Izmit domestic and industrial water supply project was conceived more than a decade ago to provide a reliable water supply to 20 municipalities in the Koeceali province of Turkey, a region in which access to running water existed for only a few hours a day.

Construction began on the giant project but soon stalled because of a shortfall in public financing. A Thames Water-led consortium, "Izmit Su," which is made up of UK, Japanese and Turkish investors, including the Greater Izmit Municipality, took on the $864 million project under a build-operate-transfer (BOT) contract in October 1995.

In November 1998, the Izmit Water Supply Project officially opened. Commercial operation commenced in January 1999, three months ahead of schedule. Thames will operate the project for 15 years.

Project risk was assessed at the outset of the contract, including that relating to the natural environment. The city of Izmit is located in a known earthquake zone, affected by movement along the Anatolian fault line, and the design of the scheme took account of this. A 400-meter-wide dam was constructed of clay, gravel and rock rather than concrete, and amendments were made to the designs of both the 480M1/d treatment plant and 100 km trunk main. Export credit and investment insurance also was taken up by the consortium Izmit Su. (Return to Table of Contents)

Thames Water advises local municipality on most critical issue: public health
A key area in which the company was able to help was public health. Given the conditions in which people were living in, local health authorities were concerned that there could be a major outbreak of disease. Drawing on experience gained from research into the social impact of other major earthquakes, Thames Water was able to advise the municipality.

Actions taken to address public health concerns included:

• the increase of the chlorine residual added to water to overcome contamination at point of use;
• the installation of temporary disaffection systems on water supplies in areas not supplied, by the lzmit Su project;
• the coordination of water quality monitoring throughout the distribution network;
• advice on data interpretation; and
• public information notices on hygiene promoted in local newspapers, on television and radio. (Return to Table of Contents)

Organizing large-scale disaster logistics
The management of logistics was a major issue in responding to such a large-scale disaster. By cooperating with other bodies such as the UK's Royal Air Force, Department for International Development and the Customs Agency, three airplane loads and four lorry loads of emergency equipment were delivered to the water treatment plant in Izmit. In addition to operational equipment required to repair the municipality's water distribution network, humanitarian aid such as tents and sleeping bags also were brought in and distributed to local people in need.

Charity and business development aid those in need
Thames Water established a charitable fund in the UK to leverage investors' and suppliers' goodwill toward the lzmit Su project in an effort to support the local community. The aim was to raise $950,000 to provide 34 fully furnished prefabricated houses for Thames Water staff who had lost everything they owned in the disaster.

The British Earthquake Consortium for Turkey (BECT) was established as a private sector initiative to secure UK participation in redevelopment work in the region by assisting in the planning of the reconstruction program. The consortium of nine UK companies includes Thames Water, which will lead utility projects and is funded partly by UK Government. BECT, like other national consortia hoping to benefit from reconstruction work in the region following the earthquakes, has a direct interest in demonstrating commitment to Turkish municipalities by investing in the process ahead of the formal tender process. (Return to Table of Contents)

Summary
The lzmit Su project serves as a blueprint to deliver future large-scale investment in water infrastructure in Turkey. It is the first water BOT in the country.

The potential impact of a significant earthquake in the region was a known risk. Actions were taken to mitigate against this risk, in terms of amendments to the design of the physical scheme, along with the use of different financial instruments.

The established partnership with the Greater Izmit Municipality, as an investor in the Izmit Su group prior to the earthquake, was key to the broadening of Thames Water's role following the disaster. (Return to Table of Contents)

This article has been adapted from a presentation made by Dreda Gaines, vice president of business development with Thames Water North Amercia Inc.