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Energy Service Modernization (ESM) of the Existing DES through a Public Private Partnership (P3): DBfOM Procurement

As the federal authority for real property, PWGSC is responsible for the delivery of essential heating services to over 80 buildings in the NCR (total floor space of approximately 1.9M m2 which houses more than 50,000 public servants) and cooling services to over 70 of these buildings (total floor space of approximately 1.8M m2), including critical sites within the Parliamentary Precinct. The NCR DES currently generates heat using natural gas and distribute the heat using steam and High Temperature Hot Water (HTHW). For cooling, water is chilled by steam-driven or electric chillers and distributed using chilled water piping.
The CHCPs were designed and built in dates ranging from 1916 to 1971, and as a result some of the assets are at, or 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 the DES.
Budget 2016 committed to recalibrating these plants and modernizing of the delivery of heating and cooling services by implementing more efficient technologies, which will both reduce long-term costs for Canada and 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, the adoption of which could further reduce greenhouse gas emissions. Potential technical options identified to modernize the DES includes the use of Low Temperature Hot Water (LTHW) and the exchange of steam turbine drive chillers for electric drives.
Canada is seeking strong competition from domestic and international companies through a P3 procurement approach in order to select a Private Partner to modernize Government of Canadas DES in order to achieve the Government of Canadas Budget 2016 commitment.

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