Ottawa’s Clearford Water Systems announced Wednesday a deal with Zurich-based Signina Capital AG worth $100 million that will see the Swiss investment firm fund all the capital costs associated with installing Clearford’s all-in-one wastewater collection and treatment system in municipalities across Ontario.
The deal will see a Canadian special purchase corporation (SPC) set up in each municipality, under a public private partnership model.
Clearford (TSXV: CLI) will get the contract with the SPC to design, build, operate, and maintain the collection and treatment system – known as the Clearford One – on a turnkey basis.
Each SPC will enter a 20 to 30 year contract with its respective municipality, with ownership of the wastewater infrastructure asset transferred to the municipality at no additional cost once the contract ends.
Signina’s chief investment officer, Martin Klöck, said his firm was pleased to be involved in the Clearford One rollout.
“We have been actively investing in Clearford since 2012, and have developed a high conviction in the company's management, technology and prospects,” he said in a statement.
"The funding agreement will offer Ontario communities a cost effective new choice for their wastewater collection and treatment requirements,” Clearford president and CEO Kevin Loiselle said in a statement.