Vol 1, Issue 12 (December 2000)
- A word from the Editor…
Welcome to the last issue of GWI in 2000. This month’s analysis of Saudi Arabia clearly shows the scale of investment needed to upgrade existing assets and build new desalination infrastructure in the Kingdom.
- Al Taweelah-A2 project status
CMS ENERGY of the US has completed 95% of the Al Taweelah- A2 power and desalination plant.
- Brazil gets political again
The vast business opportunities presented by the Brazilian water sector remain tantalisingly out of reach. Despite the best efforts of state economic development bank BNDES, privatisation of water and sanitation companies continues to be mired by administrative uncertainty and local politics.
- Israel: brackish water projects
THE WATER COMMISSION OF ISRAEL is launching a countrywide project to desalinate saline and brackish water, aimed at increasing the availability of potable water.
- Johannesburg opts for Northumbrian/SLdE
THE NORTHUMBRIAN WATER GROUP joint venture has been selected as preferred bidder to manage water and wastewater services for Greater Johannesburg. The five and a half year management contract will be with Johannesburg Water, the new utility which is being formed as part of the iGoli 2002 plan.
- Rio state to undertake Barra outfall project
RIO DE JANEIRO state governor Antony Garotinho has announced that his state will undertake the Barra de Tijuca outfall project in Rio de Janeiro’s western suburbs. The Rio state water company, Cedae, will carry out the work.
- Saudi Arabia: the growing need for investment
Saudi Arabia will have to spend SR202,463 million ($53.9 billion) over the next two decades to build, operate and maintain water projects to meet demand in the Kingdom. The figure is based on 300 litres per day (l/d) per capita consumption and includes the investment required for desalination plants, combined desalination and power plants, and brackish water desalination. It does not include the investment requirements for urban network rehabilitation and expansion.
- Thames not interested in Prolagos
THAMES WATER has denied reports that it is to take a stake in Prolagos, the basic sanitation service concessionaire for the Lake District (Regiao dos Lagos) on the eastern seaboard of Rio de Janeiro state.
- Vivendi/Anglian planning new year assault on Brazil
VIVENDI CHAIRMAN JEAN-MARIE MESSIER is to visit Brazil early in the new year to discuss the complete privatisation of Sanepar, the Paraná state water company, with state governor Jaime Lerner. Sanepar supplies 98% of the state of Paraná with water and sewerage services.
- Aguas de Niteroi takes BNDES lending over R$700 million
BRAZIL’S STATE ECONOMIC DEVELOPMENT BANK, BNDES signed a R$53 million (US$26.8 million) credit contract with private Rio de Janeiro state water company Aguas de Niteroi on 21 November.
- Choqueyapu clean-up study
THE BOLIVIAN WATER SERVICES UTILITY, Aguas del Illimani has completed a draft feasibility study for the $52 million Choqueyapu river clean-up project.
- Cigli phase two
THE SECOND PHASE of the Cigli wastewater treatment plant has been inaugurated at Izmir in Turkey. The plant will process industrial and domestic wastewater which had been polluting Izmir Bay.
- De Beers help for Koffie pipeline
MINING COMPANY DE BEERS has contributed R2.5 million ($325,000) to the construction of the Koffiefontein emergency water pipeline in South Africa’s Free State.
- Earth Tech wins Scottish water treatment contract
THE NORTH OF SCOTLAND WATER AUTHORITY (No SWA) has selected Earth Tech to design, build and commission a new 34Ml/d (10MGD) WTP and supply system for Inverness.
- EBRD renews Riga Water commitment
THE EBRD is to lend €39 million to the Riga Water Company (RWC) to improve municipal water and wastewater services.
- Finnish group consolidates in Vietnam
FINNISH WATER AND SEWERAGE services company Soil and Water – part of the Jaako Pöyry group – has been awarded the fourth phase of a project to develop potable water, wastewater and solid waste management systems in the Vietnamese city of Haiphong under a contract worth $5.2 million.
- Kosovo contract for Kemira Chemicals
KEMIRA CHEMICALS’ KEMWATER subsidiary has won a contract to develop water supply and sewerage services in Kosovo.
- Syracuse wastewater treatment to receive $11.9 million upgrade
THE STATE OF NEW YORK’S Onondaga County has awarded US Filter an $11.9 million contract to upgrade treatment at the metropolitan Syracuse WwTP.
- Vivendi water sales rise
VIVENDI ENVIRONNEMENT’S water sector sales at the end of September 2000 had risen 32% to €9.06 billion ($7.96 billion) compared with €6.85 billion ($6.02 billion) at the same time in 1999.
- Acquisitions: Eon throws the towel in
GERMAN ENERGY GROUP EON has admitted defeat in its bid to enter the global water market via the acquisition route. The group broke off talks with Azurix at the end of October after reportedly offering $2.5 billion to acquire the company (see GWI, Vol. 1, Issue6, p.7).
- Gelsenwasser and Emscher seek separate partners
AFTER THE FAILURE IN SEPTEMBER of their attempt to merge, water companies Gelsenwasser and Emschergenossenschaft/Lippeverband and are looking for new partners in preparation for impending liberalisation in the German water market.
- Road clear for Thames Water’s integration into RWE
RWE’S ENTRANCE into the water business is almost complete following its acquisition of Thames Water.
- Jury out on water mergers and consolidation
The progressive consolidation of the water industry continued in 2000, if at a slower pace than last year. Several notable transactions, most recently RWE’s acquisition of Thames Water, prompted GWI to ask Avalon Trust’s Owen Quattlebaum what this means for investment fund managers focused on water. This month’s Investor’s View contains Mr Quattlebaum’s response.
Performer of the month
- UK profits continue to fall
Shares of UK water companies ended November in decline following the release of half-year results showing an industry-wide average drop in pre-tax profits of around one third on profit levels for the same period a year ago.