Energy Services Acquisition Program (“ESAP”) P3

Project description

We assisted the Department of Justice in providing procurement advice and transaction support services to Public Works and Government Services Canada for the Energy Services Acquisition Program’s (ESAP) Energy Service Modernization (ESM) P3 project. 

The Design Build Finance Operate and Maintain (DBFOM) project involves the construction and rehabilitation of the district energy generation and distribution systems, providing heating and cooling services to 80 government and private sector buildings in the National Capital Region (NCR). It entails the new construction or retrofitting of five district heating and cooling plants and related distribution system infrastructure. The project has a term of over 35 years and achieved financial close on May 31, 2019. This project was named the “2019 North America Utility Deal of the Year,” by IJ Global.

What makes this project unique

Federal authority Public Works and Government Services Canada (PWGSC) is responsible for the delivery of essential heating services to 80 buildings in the NCR and cooling services to 67 of these buildings, including critical sites within the Parliamentary Precinct. 

The existing district energy system currently generates heat using natural gas and distributes the heat using steam and high temperature hot water. Chilled water is provided by steam-driven or electric chillers and distributed using chilled water piping.

The combined heating and cooling systems were designed and built between 1916 to 1971 so many of the assets are nearing the end of their useful life. Major capital investment is required in order to ensure the reliability and efficiency of the heating and cooling operations of buildings connected in the NCR. Canada’s federal budget in 2016 included a commitment to modernizing plants and the delivery of heating and cooling services by implementing more efficient technologies, to both reduce long-term costs for Canada and to reduce greenhouse gas emissions. In addition, the new technology will enable Canada to explore the feasibility of using alternative low- or no-carbon sources of energy, which could further reduce greenhouse gas emissions.

Meet the team

The team was led by Ottawa-based partners John Naccarato and Andrew Pritchard, with assistance from Ethan Sinclair, Michael Cockburn and a host of other project team members from the Ottawa Office.