Vol 1, Issue 10 (October 2000)
Analysis
- A word from the Editor…
The takeover of Thames Water takes centre stage this month.
General
- Chile: Thames takes stake in Essbio
Thames Water has made the winning bid for a 42% shareholding in Chile’s Essbio (Empresa de Servicios Sanitarios del Bio Bio). Acting under the name of Aguas Arauco, Thames – which has just been bought by German firm RWE – paid $282.3 million for its stake, beating Vivendi’s offer of $269 million.
- Gelsenwasser/Emscher merger put on hold
THE PLANNED MERGER o f Eon subsidiary Gelsenwasser and Essen wastewater company Emschergenossenschaft/Lippeverband has been put on hold.
- São Francisco gets a boost
BRAZIL’S SÃO FRANCISCO water transfer project took a step forward last month when National Integration minister Fernando Bezerra signed a decree setting up a special purpose management committee.
- Tallinn bidders expected to pay over the odds
Shares in Tallinn Water are expected to sell at a premium slightly above the 580 million kroon ($35 million) minimum price. Evaluation of bids will be based on a purchase and subscription price and projected changes in the price of services.
Brief
- ANA board named
THE BOARD of Brazil’s new independent regulatory body for water resources, ANA (Agencia Nacional de Aguas) has been named and is now awaiting congressional ratification.
- Bangalore signs MOU with SLdE and Vivendi
THE STATE GOVERNMENT of Karnataka in India has signed a memorandum of understanding for two water services projects with a consortium led by Suez Lyonnaise des Eaux and Vivendi Water.
- Bucaramanga studies Peru’s Chillon model
REPRESENTATIVES FROM Colombian water works company Compañia del Acuenducto Metropolitano de Bucaramanga visited Peru’s state-owned Sedepal last month to study the concession mechanism used for the $80 million Rio Chillon drinking water project.
- Cambodia technical assistance role for Mott
THE UK’S MOTT MACDONALD has been appointed by the Asian Development Bank to assist in a programme of institutional strengthening and capacity building for Cambodia’s newly created Ministry of Water Resources and Meteorology (MOWRAM).
- Degrémont takes Tours
THE WATER SERVICES subsidiary of Suez Lyonnaise des Eaux, Degrémont, has been selected by the bidding commission of the Tours area of France to modernise and expand the local WwTP.
- EBRD approves FYROM loan package
A €69.5 MILLION PROGRAMME to provide water and sewerage services in five cities in the Former Yugoslav Republic of Macedonia has been launched with loan funding of €20.8 million from the EBRD.
- Emos aims to award Farfana contract by year end
SANTIAGO-BASED water utility Emos aims to award the design build contract for the La Farfana WwTP in December this year or January 2001, for an estimated investment of $300 million. Shortlisted companies were due to be named as GWI went to press.
- Finnish consortium to help out in Russia
THE ST PETERSBURG VODOKANAL has signed a contract with Finnish consortium Water Propartners to provide consultancy in the construction of the city’s southwestern STP and associated collectors.
- Pre-qualifiers for Wibdeh
JORDAN’S WATER AND IRRIGATION MINISTRY has pre-qualified contractors for the $200 million Wibdeh dam.
- Sanesul to consider restructuring
MATO GROSSO DO SUL state water company Sanesul will enter the final phase of restructuring and begin considering new operational models this month. One option would be to search for a private partner to help finance projects already being developed by the company.
- SLdE buys two Czech water companies
SUEZ LYONNAISE DES EAUX has acquired two Czech water services companies, Vodohospodarska spolecnost Benesov (VHS) and Vodarny a kanalizace Davle (VOK).
- Sri Lanka gets $19.7 million ADB loan
THE ASIAN DEVELOPMENT BANK is to lend Sri Lanka $19.7 million to improve water resources management in the capital, Colombo. The loan will help finance a project to strengthen institutional capacity and further develop the National Water Resources Authority (NWRA).
- Vivendi and IDE to run for Ashkelon tender
VIVENDI will participate in the tender to build the Ashkelon desalination plant in Israel, forming a consortium with Israeli company IDE Technologies. Anticipated investment for the 50Mm<sup>3/</sup>/year seawater plant is between $150 million and $200 million. It will be built on a BOT basis.
- World Bank lends $30 million to Brazil
THE WORLD BANK has granted the Brazilian government a $30 million loan for the second phase of Prosanear, a programme aimed at providing water and wastewater services for low-income groups in urban areas.
Companies
- Strong first half for Vivendi Environnement
THE NEW WATER SERVICES, ENERGY AND PROPERTY subsidiary of Vivendi, Vivendi Environnement, has posted first half 2000 net group profits of €105 million on sales up 38.6% at €12.5 billion. Operating profits in the reporting period went up 38% to over €860 million.
- Thames Water sold in €11.3 billion deal
German multi-utility RWE has acquired Thames Water in an €11.3 billion deal to achieve its target of becoming one of Europe’s three top water companies. Thames will keep its name and operate within the RWE group as Thames Water, a division of RWE. The company will be based in London and headed by Bill Alexander, current chief executive of Thames Water. RWE sees the acquisition of Thames as an important springboard for entry into the US water services market.
Market insight
- Water companies score high in risk rating study
The Turnbull Code on Internal Control is set to become a mandatory London Stock Exchange listing requirement later this year. All listed companies – including water utilities – will be required to establish mechanisms to meet the necessary risk management obligations. With this in mind, Andreas King of SERM provides GWI with a preview of water companies’ environmental risk ratings.
Performer of the month
- Thames takeover underpins strong UK performance
The takeover of Thames Water by German multi-utility RWE dominated the news last month. On 25 September, following a week of speculation, Thames announced that it would be acquired by RWE.
