Case Studies

Aquanet Recycled Water Project

  • Aquanet Recycled Water Project

    Sphere advised First Sentier Investors and its water business, Water Utilities Australia, on its acquisition of a recycled water treatment and recycled water pipe network asset known as Aquanet. 

    AquaNet produces recycled water for industrial use in the Fairfield, Cumberland and Parramatta local government areas of Western Sydney, New South Wales. AquaNet has the capacity to produce up to 7,300ML per annum of recycled water and is ideally situated to support the growth in the Greater Western Sydney region.

    The engagement required Sphere to take overall responsibility for First Sentier’s participation in a competitive bid process run on behalf of the vendors. Sphere’s role was to project manage the transaction on behalf of First Sentier from EOI phase through to binding offer and finally contractual and financial closing. This included managing the due diligence process with relevant third parties (legal, technical, accounting, tax and insurance) as well as negotiations with the vendors’ sell side advisory team through to financial close. 

    Sphere also undertook commercial due diligence, performing an assessment of existing contractual arrangements and related performance. Critical to this engagement was meeting the infrastructure fund client’s investment objectives. Sphere reviewed material transaction documents and financial models attached to the business and provided key inputs into the due diligence process.

NSW Waste Strategy

  • Sphere advised the NSW Environment Protection Authority (EPA) as part of the development of the 20-year Waste Strategy for NSW. The purpose of the Strategy will be to set a 20-year vision and directions to reduce waste to landfill, driving sustainable recycling markets and identifying and improving the state and regional waste infrastructure network. 

    Sphere was responsible for preparing a suite of reports including a situational analysis, demand projections for the NSW waste sector, and to benchmark the NSW waste sector against international and domestic best practice to identify areas of improvement. The analysis considered the three solid waste streams:

    • commercial and industrial (C&I): waste from commercial and industrial businesses

    • construction and demolition (C&D): waste from construction and demolition activities

    • municipal solid waste (MSW): waste from households and public places.

    Key findings from the analysis assisted the EPA in the development of the 20-year Waste Strategy.

    A link to the three volumes of documentation that Sphere prepared in partnership with PWC are here:

    https://www.nsw.gov.au/sites/default/files/2020-04/Key-Findings.pdf

Infrastructure Australia

  • Infrastructure Australia

    Sphere advised Infrastructure Australia in the drafting of the inaugural Waste Chapter for the Australian Infrastructure Plan 2021 (the Plan). Sphere leveraged its industry experience to undertake a comprehensive literature review and provide a number of reform recommendations to achieve a ‘waste free society’ in Australia.

    Waste reform recommendations outlined in the Plan to accelerate Australia’s transition to a circular economy include:

    • avoid waste, improve resource recovery and build demand and markets for recycled products by integrating the circular economy in national waste policy and infrastructure projects

    • encourage market development through government and industry partnerships to accelerate and extend the implementation of the National Waste Policy’s data actions and bring national consistency to the household waste collection and landfill levy system.

    A link to the 2021 Australian Infrastructure Plan is here: https://www.infrastructureaustralia.gov.au/2021-australian-infrastructure-plan

Sustainability VIC Grant Funding Program

  • Sustainability VIC Grant Funding Program

    Sphere provided financial, commercial and technical advice to Sustainability Victoria (SV) to deliver waste infrastructure funding as part of the Australian Government and Victoria’s circular economy policy and action plan. 

    Sphere advised SV across the grant funding program, including:

    • development of fit-for-purpose applicant guidelines and weighted evaluation criteria

    • review of grant funding applications, focusing on the financial, commercial, economic and technical project elements and deliverability risks to the State

    • provision of independent views to the evaluation panel, for consideration in assessing applicants for receipt of grant funding.

  • ACT Materials Recovery Facility

    Sphere has served as an integrated partner to Transport Canberra & City Services, a directorate of the ACT Government, to facilitate the procurement process for a new Materials Recovery Facility (MRF).

    Sphere has provided commercial advisory support to the Territory, including the preparation of project documentation.  Sphere has worked closely with the Territory’s legal and technical advisors to ensure that the legal framework and contracting suite aligns seamlessly with the technical, commercial, financial and legal aspects of the project. The engagement includes:

    • the development and implementation of a fit-for-purpose procurement strategy, including the identification of  a preferred delivery model, development of procurement plans, commercial principles and risk assessment in line with internal approval pathways of the client and regulatory and legislative guidelines;  

    • supporting the development of tender and contract documentation to facilitate the procurement process, including contracts, evaluation plans and reports; and

    • assisting with the commercial negotiations and review of responses, providing ad hoc advice to the evaluation panel.

Coliban Water - Transaction Services

  • Coliban Water Transaction Services

    Since 2018 Sphere has partnered closely with the Coliban Region Water Authority (Coliban Water) to provide commercial, procurement, financial and transaction advisory services across a number of significant projects and contracts within their business. 

    In 2020 Coliban Water sought advisory services for the extension of its long-term O&M contract covering water infrastructure. The O&M scope covered both the networks and plant operations and maintenance for the majority of the water corporation’s service region. 

    Sphere was engaged as the lead commercial advisor to negotiate an updated  O&M services contract, reviewing and assessing the existing and alternative service delivery models in line with Coliban Water’s corporate objectives, strategy and risk appetite.

    The engagement involved extensive interaction and collaboration with a large and diverse network of key stakeholders.

    Sphere was also responsible for undertaking the end to end procurement process for the renewal of the contract which included preparing and running an Expression of Interest process and Request for Proposal process. Commercial negotiations and related amendments to the contractual arrangements were also completed by Sphere.

    A key part of our services was preparing the necessary briefing and board papers for Coliban Water to support approval of the contract renewal.

    Coliban Water successfully renewed the O&M Services Agreement for a further 5 year term

Commercial Due Diligence on Waste Businesses and Infrastructure

  • Commercial Due Diligence on Waste Businesses and Infrastructure

    Sphere is regularly engaged by industry, private equity and infrastructure funds to provide insights on the Australian waste sector and specific potential targets. 

    Market assessment reports can include a focus on targeted waste materials across MSW, C&I and C&D for specific customer types and target jurisdictions. Some examples of report contents include:

    • market analysis, including competitor research and evaluation of the regulatory landscape tailored to the specific industry of interest;

    • potential tailwinds and headwinds to identify relevant opportunities in the markets as well as risks across the targeted waste streams and customer types; 

    • the regulatory landscape and contracting dynamics within the waste sector to identify suitable strategies or approaches for engagement within the market; and

    • historical waste volume data to identify trends in recycling across key customer types and target jurisdictions;

    • in the case of specific targets - insights into the target company’s strengths, weaknesses, opportunities, and threats.

    The commercial reports are utilised by Sphere’s clients to gain insights into the current state of the market; and/or as a tool for decision-making in the acquisition of a target, enabling them  to make strategic decisions aligned to overall business objectives.

Zenith Energy - Transaction Management

  • Zenith Energy - Transaction Management

    Sphere was engaged by Zenith Energy as the lead commercial and transaction management advisor on its bid for a large-scale Build Own Operate  hybrid, thermal, BESS, wind and solar power station project. Through an integrated partnership, Sphere provided end-to-end  transaction management support services from RFP submission through to preferred bidder identification and commercial negotiations. The engagement included:

    • The development and implementation of a contracting strategy, structure and key terms;

    • Detailed risk assessment involving a complex nexus of stakeholders, particularly between the SPV, key subcontracts and client for the delivery and operations phases of the project;

    • Development of a financing strategy and comprehensive program to progress the project from preferred bidder to Contract and Financial Close;

    • Assisting with the development of project budgets for project finance related activities; and

    • Ad-hoc commercial advice and transaction management advisory services. 

    The renewables-based power solution, to be delivered via a power purchase agreement, was  to supply up to 80% of the large nickel and copper mine from renewable sources with a pathway to achieve net zero scope 1 emissions by 2039. 

Licella Advanced Recycling Facility

  • Licella Advanced Recycling Facility

    Sphere worked with Licella on its project to establish an Advanced Recycling Facility in Altona, Victoria to process end-of-life plastic into the oil and chemicals to make new plastic and divert waste from landfill.

    Sphere was engaged to provide specialised commercial advisory services across a number of workstreams, including: 

    • project management activities, integrating engineering and technical workstreams with commercial elements, advising on project-specific risks

    • strategic commercial advice & transaction management

    • development of key commercial terms for project documents (such as feedstock and site procurement arrangements) 

    • identification of feedstock sourcing strategies

    • peer reviews of financial models 

    • provision of best practice advice regarding project-specific risk management and governance frameworks.

Bendigo Mine Groundwater Project

  • Bendigo Mine Groundwater Project

    Sphere was engaged by Coliban Water to provide commercial advisory and transaction management services to review and develop a strategy for the transition from the interim Bendigo Mine Groundwater Project to the longer term solution.

    The interim solution included an existing facility delivered under a build own operate transfer (BOOT) model that was nearing the end of the contract term. Sphere, in collaboration with Coliban Water and DEECA developed a strategy that included implementing the end of term obligations and partial decommissioning of the project under the current BOOT contract and extending the operations at the current site under a new arrangement to provide treatment capacity while the longer term solution was developed. 

    The engagement included:

    • Risk assessment and development of detailed operational and contractual transition strategy;

    • Development and implementation of a contracting strategy, structure, scope of works and key commercial terms for the new transition arrangements; 

    • Negotiation and implementation of end of term arrangements including monitoring and contract administration support to close out the original contract;

    • Assisting with the development of project budgets for project finance related activities; and

    • Ad-hoc commercial advice and transaction management advisory services. 

    The project was successfully implemented and provided a robust transition strategy to maintain critical groundwater treatment capacity to mitigate environmental risks while the longer term solution was implemented.

ACT Materials -Recovery Facility

West Basin Water District O&M

  • West Basin Water District O&M Contract Transaction

    Sphere in collaboration with Hazen and Sawyer, has been engaged by West Basin Water District, California to review and develop a new outsourced Operations and Maintenance Services Agreement for its recycled water treatment facilities. 

    Key activities included:

    • Review of current outsourced arrangements and provision of strategic advice on proposed revised contracting strategy, commercial and technical structure of the proposed new outsourced arrangements; 

    • Development of scope and risk allocation matrices and commercial terms underpinning the new contract suite and subsequent RFP; and

    • Preparation of scope of services, commercial terms, performance management frameworks, RFP package for issue

Wamuran Irrigation Scheme

  • Wamuran Irrigation Scheme

    Sphere was engaged to provide specialist commercial, technical and operational advice to the Pensar team and Unitywater for the project from concept development phase through to binding bid and project delivery. Sphere was involved in the development of the contracts, advising on commercial approach and risk allocation to the joint venture, and Unitywater, project control boards. 

    Key activities included:

    • strategic commercial and operational advice and transaction management support; 

    • contract review, development and negotiations;

    • development of O&M specifications; and

    • governance and risk management advice and support.

Coliban Water Reclamation Plant Upgrades

  • Coliban Water Reclamation Plant Upgrades

    Upgrade process of two significant Water Reclamation Plants within their catchment area, being the Castlemaine and Epsom Water Reclamation Plants. 

    The scope of work for each Plant included working closely and in a collaborative manner with the Coliban Water project team to:

    • Prepare a detailed delivery model assessment and recommendation report;

    • Establish project specific risk framework and risk register, in line with corporate requirements, and capable to evolve through the development and delivery phases

    • Undertake a market sounding process with key considerations around delivery model, timing and technical parameters; 

    • Establish a detailed integrated program for the development and delivery of the projects including critical path analysis;

    • Develop a commercial framework for each of the projects based on key risk allocation parameters within Coliban Water and generally acceptable market conditions for such projects;

    • Prepare a detailed business case including financial modeling to support the delivery model options for the Castlemaine plant;

    • Financial modeling scope was expanded to cover alternate funding models and support regulatory pricing implications.

Redland City Council – Wastewater Infrastructure Program

  • Sphere is currently engaged as lead transaction and commercial advisor to Redland City Council for the major procurement of its wastewater treatment plant upgrade strategy. The multi-year program will be delivered in phases. 

    Sphere is supporting Council across all key phases of the program, including:

    • development of the procurement strategy

    • execution of the expression of interest (EOI) process

    • delivery phase procurement and contract execution

    Key activities include:

    • strategic commercial advice and transaction management

    • review of delivery models and market engagement options

    • contract negotiation, drafting and review

    • preparation of procurement documentation and evaluation processes

    • project management and governance support

    The program represents a significant investment in regional infrastructure renewal and is central to Council’s long-term capital works and service delivery planning.

City of Gold Coast – Advanced Resource Recovery Centre

  • The City of Gold Coast is progressing the development of a large-scale integrated recycling and energy precinct to co-locate infrastructure, industry and innovation — with the goal of closing the loop on material use and resource recovery. The precinct is to include a large scale waste to energy facility.

    Sphere is engaged as transaction advisor to support the waste-to-energy project to work collaboratively with the broader project team (including other advisors) to provide strategic commercial and procurement advice, including:

    • development of a commercial and delivery strategy for project implementation

    • market sounding and development of market engagement and partnership options

    • business case development

    • advice on project governance and risk allocation

    • develop and implement the City’s procurement strategy, with a particular focus on procurement documentation and commercial terms 

    • general project management and governance support

    The project forms a cornerstone of the City’s broader resource recovery strategy and signals its commitment to sustainable, precinct-scale infrastructure investment.