Alaska Military Installations Project Profile

The Client 

The United States Military.

The Challenge

In 2005, the US Military put out a Request for Proposal for the delivery of a comprehensive, long-term multi-utility infrastructure project to be implemented at three Installations in Alaska.

The Installations and the 12 utility systems included in the project were identified as:

  • Fort Wainwright (near Fairbanks) – Central Heat and Power Plant and Heat Distribution, Electrical Distribution System, Water Distribution System, and Wastewater Collection System

  • Fort Richardson (near Anchorage) – Electrical Distribution System, Natural Gas Distribution System, Water Distribution System, and Wastewater Collection System

  • Fort Greely (near Delta Junction) – Central Heat Power Plant and Heat Distribution System, Electrical Distribution System, Potable Water Distribution System, and Wastewater Collection System

The Solution

After a lengthy solicitation phase, Corix was awarded the $4 billion project. The contract, as amended, includes utility infrastructure investments in excess of $1 billion over the 50-year initial term of the renewable contract and will be delivered through Doyon Utilities, a 50:50 partnership between Doyon Limited, a successful Alaska Native corporation and Corix's wholly owned subsidiary, Fairbanks Sewer and Water.

Comprehensive

Under the terms of the contract, Doyon Utilities will provide Design-Build-Finance-Own-Operate and Maintain services for the 12 utility systems. Currently, 20 engineering staff and construction project managers are engaged to plan, engineer and manage over 500 construction projects that will be developed over a five year period. The work will also entail establishing Construction Standards, Health and Safety Standards, and Enterprise Environmental Risk Management policies.

Additionally, Doyon Utilities has hired approximately 120 staff including field operations and corporate support staff. This includes electrical and maintenance supervisors, working foremen, central heating plant station operators, maintenance personnel, linemen and power control staff, water and wastewater operators, quality control supervisors, and approximately 30 utility fitters across the three military installations.

Cost-effective

In Alaska, Corix's involvement as a private sector utility, owner, and operator results in an estimated 30% reduction of capital investment costs.

Socially responsible

Partnering with local communities is central to Corix's business model. Our joint venture partner, Doyon Limited, is the largest private landowner in Alaska. The combined strength of Doyon, Corix's Alaskan utility subsidiary, Fairbanks Sewer and Water, and Corix's utility operating companies across North America ensure safe, reliable, and cost-effective service to these mission critical installations in Alaska.

Financially sustainable

All 12 privatized utilities that are owned and operated by the partnership are regulated by the Regulatory Commission of Alaska which sets rates according to a regulated utility model. User rates are developed on a cost-of-service basis, which provides for full cost recovery and adequate maintenance, ensuring that the utility will remain current and viable in the long-term at competitive rates.

The Bottom Line

By forging this 50-year agreement with Corix, the US Military facilitates better outcomes, including improved efficiencies, greater accountability, increased longevity, enhanced safety and working standards, and more competitive costs.