PIONEERING THE GAINSHARE MODEL

Business Stream and Glasgow City Council's Partnership for Water Efficiency

In a move that showcases innovative financial models in public-private partnerships, Business Stream, a leading expert in water management solutions, has successfully implemented a 'gainshare' model with Glasgow City Council. This initiative has not only enabled the council to achieve significant water efficiencies across its vast array of sites but has also set a precedent for overcoming budget constraints through creative problem-solving.

The Challenge: Budget Constraints vs. Sustainability Goals

Glasgow City Council, with an eye towards sustainability and efficiency, sought to identify potential water savings across its extensive portfolio of over 700 sites. This ambitious undertaking was motivated by an expert analysis conducted by Business Stream, which revealed a potential for the council and its sport and culture operator to save as much as £1 million through targeted water efficiency measures. However, budgetary pressures presented a formidable obstacle, leaving the council in a quandary over how to fund the initial investment required to unlock these savings.

 

The Solution: A Groundbreaking Gainshare Model

In response to this challenge, Business Stream and Glasgow City Council embarked on discussions that culminated in the formulation of a novel 'gainshare' model. Under this arrangement, Business Stream would cover the upfront costs associated with the necessary infrastructure upgrades and labor. The savings realized from these investments would then be shared between Business Stream and the council, allowing both parties to benefit financially from the project's success.

The implementation phase saw Business Stream taking decisive steps to achieve water efficiency, including:

• The installation of Automated Meter Readers (AMR) at strategic locations to monitor and identify atypical water usage patterns.
• The identification and repair of hidden leaks across the council's properties, thereby preventing water wastage.
• The installation of water-saving devices in sinks and toilets where analysis indicated significant savings could be achieved.

 

The Successful Outcome: Exceeding Expectations

The collaboration between Business Stream and Glasgow City Council has borne fruit, with results surpassing the initial savings forecasts. Over a span of four years, the project is on track to save the council an impressive £1.3 million, exceeding the original £1 million projection. Furthermore, this initiative has contributed to a reduction of 1,105 tones of carbon emissions, aiding the council in its efforts to meet its environmental and emissions targets.

This financial model has demonstrated that substantial infrastructural and environmental improvements can be realized without the need for immediate capital investment by the council. The success of this partnership not only highlights the potential for innovative financial solutions to facilitate sustainability projects but also underscores the value of collaborative approaches in achieving public sector goals.

Business Stream's gainshare model with Glasgow City Council serves as a case study in how forward-thinking strategies can overcome financial hurdles, paving the way for significant savings and environmental benefits. This initiative stands as a testament to the power of partnership and innovation in public service delivery.

For a detailed exploration of this partnership and its outcomes, interested parties can read more on Business Stream website.

 

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