AECOM® joint venture to support delivery of the Kensico – Eastview Connection project

Rhea-AI Summary

AECOM, a global infrastructure consulting firm, has been selected by the New York City Department of Environmental Protection for the Kensico – Eastview Connection project. The joint venture will oversee the delivery of the Kensico Third Conveyance Tunnel, improving the reliability and resilience of the city's water supply. The tunnel will carry 2.6 billion gallons of water per day, providing redundancy and flexibility to the water supply system. AECOM's expertise in the water sector positions them to ensure the delivery of clean, safe, and reliable drinking water for New Yorkers.

Insights

Civil Engineering Expert

The Kensico – Eastview Connection project managed by AECOM is a substantial civil infrastructure initiative with significant implications for New York City's water supply system. The construction of a new conveyance tunnel is a complex engineering feat, particularly given the depth and capacity of the planned structure. The tunnel's ability to transport 2.6 billion gallons of water per day will enhance the system's operational efficiency and resilience. From a civil engineering perspective, the redundancy this project introduces is critical for mitigating risks associated with the city's aging infrastructure and ensuring uninterrupted water supply. The project's emphasis on environmental considerations, such as wetlands mitigation, also reflects a growing trend in civil projects to balance infrastructure needs with environmental stewardship.

Environmental Consultant

As an environmental consultant, the focus on the ecological aspects of the Kensico Third Conveyance Tunnel project is noteworthy. The commitment to shoreline stabilization and wetlands mitigation indicates a proactive approach to minimizing the environmental footprint of such a large-scale project. This is particularly relevant given the reservoir's role as a critical water source for New York City. The project aligns with broader environmental objectives, potentially setting a benchmark for future infrastructure projects in urban settings. The environmental benefits extend beyond the immediate area, contributing to the overall health of the region's waterways and ecosystems, which is beneficial for the community and aligns with sustainable development goals.

Financial Analyst

From a financial perspective, the Kensico – Eastview Connection project represents a significant investment in New York City's critical infrastructure, which may have ripple effects on the local economy. AECOM's involvement in the project could potentially lead to an uptick in the company's financial performance, subject to efficient project management and timely completion. Investors may view this project as an indicator of AECOM's ability to secure and manage large-scale infrastructure contracts. Furthermore, the project may stimulate job creation and procurement opportunities for local businesses, contributing to economic growth. Long-term financial benefits also include potential cost savings from increased efficiency and reduced need for expensive emergency repairs or water supply disruptions.

The venture will deliver a new conveyance tunnel on behalf of the New York City Department of Environmental Protection to improve the reliability and resilience of the City’s water supply.

DALLAS--(BUSINESS WIRE)-- AECOM^® (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced that the New York City Department of Environmental Protection (NYCDEP) has selected an AECOM joint venture to provide inspection services for the Kensico – Eastview Connection project. In this role, the joint venture will oversee the delivery of the Kensico Third Conveyance Tunnel, which will supply water from the Kensico Reservoir to the Catskill-Delaware Ultra Violet (CDUV) Disinfection Facility in Eastview, New York.

Designed to carry 2.6 billion gallons of water per day, this new, third conveyance tunnel will provide an increased water flow into the CDUV before it is delivered to New York City residents. Once completed, the tunnel will provide redundancy and flexibility to the city’s water supply system, allowing for more efficient movement of water and ensuring that the city has a reliable backup in the event of a disruption to its existing supply routes.

“We’re proud to extend our decades-long relationship with New York City, serving as a trusted partner as the city plans increasingly ambitious critical infrastructure projects,” said Beverley Stinson, chief executive of AECOM’s global Water business. “Our leading expertise in the water sector, bolstered by our local success and global capabilities, positions us to help ensure this major urban water system — one of the world’s largest — continues to deliver clean, safe, and reliable drinking water for all New Yorkers.”

The joint venture will supervise three concurrent teams to complete the project. The first team will oversee the delivery of the 2-mile-deep tunnel. The second team will focus on the build out of new facilities and connection to the tunnels from new and the existing CDUV facility in Eastview. The third team will stabilize the shoreline during delivery and provide wetlands mitigation adjacent to the Kensico Reservoir. When completed, this third conveyance tunnel will allow the capacity of the Kensico Reservoir to grow and maintain levels as work is underway on a separate reservoir in Hillview.

“This large, multifaceted project will not only revitalize key infrastructure, but will also bring important environmental benefits to one of New York City’s largest water sources and its surroundings,” said Bane Gaiser, chief executive of AECOM’s U.S. East and Latin America region. “Our history of similar successful water projects of this scale in New York coupled with the industry-leading experts of this joint venture team will benefit the NYCDEP, the state of New York, and the communities within New York City.”

The project is part of a larger effort by the NYCDEP to upgrade and modernize the city’s aging water supply infrastructure. With the connection to the Eastview UV Facility through an additional hydraulic link, the New York City water supply system will be better protected should the Delaware Aqueduct become unavailable.

About AECOM

AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements

All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the expected benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas construction businesses, including the risk that any contingent purchase price adjustments from those transactions could be unfavorable and result in lower aggregate cash proceeds and any future proceeds owed to us under those transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240122236149/en/

Media:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is the Kensico – Eastview Connection project about?

The Kensico – Eastview Connection project involves the delivery of the Kensico Third Conveyance Tunnel to improve the reliability and resilience of New York City's water supply.

What is the capacity of the new conveyance tunnel?

The new conveyance tunnel will carry 2.6 billion gallons of water per day.

How will the new tunnel benefit New York City's water supply system?

The new tunnel will provide redundancy and flexibility to the city's water supply system, allowing for more efficient movement of water and ensuring a reliable backup in the event of a disruption to existing supply routes.

Who will oversee the delivery of the Kensico Third Conveyance Tunnel?

AECOM, in a joint venture, will oversee the delivery of the Kensico Third Conveyance Tunnel.

What environmental benefits will the project bring?

The project will revitalize key infrastructure and bring important environmental benefits to New York City's water sources and its surroundings.