Vol 1, Issue 7 (July 2000)

Analysis

  • A word from the Editor…

    Welcome to the second issue of Global Water Intelligence (GWI). There have been one or two minor layout changes since our launch last month. Most notably, tracker has assumed a tabular format which we hope will make it easier to follow the diverse range of public-private partnerships in the water industry.

General

  • Asea signs Osca concession contract

    THE SPANISH CONSORTIUM ASEA signed a 30-year concession contract in mid-June to operate water utilities in three departments of Argentina’s Catamarca province. It will formally take control of the concession at the end of July or early in August.

  • Brazilian senate approves water agency

    BRAZIL’S SENATE has approved the creation of an autonomous agency to regulate water resources.

  • Central America: rebuilding after Mitch

    Central American countries, battered by Hurricane Mitch in October 1998, are undertaking programmes to repair their urban water supply systems and set up sewerage services for thousands of households. The private sector can potentially play a significant role in this reconstruction of Central America’s water industry.

  • Copasa split delayed for at least six months

    THE SEPARATION of Belo Horizonte’s basic sanitation services from Copasa (Companhia de Saneamento de Minas Gerais), the Minas Gerais state water company, is likely to take another six months after the state governor and the city’s mayor agreed to the delay.

  • El Bato dam bids by September 12

    THE 14 GROUPS prequalified to bid for the El Bato dam concession in Chile’s Illapel area have until 12 September to make their technical and economic bids, the executive secretary for irrigation, Rolando Nunez said on 22 June.

  • El Salvador plans Rio Lempa

    EL SALVADOR’S MINISTRY OF AGRICULTUR E (MoA) is to publish a report in August on the state of pollution in the Lempa river.

  • Green light for $2.3 billion São Francisco transfer project

    BRAZIL’S PRESIDENT FERNANDO HENRIQUE CARDOSO has officially approved the R$4.1 billion (US$2.27 billion) São Francisco river water transfer project.

  • Investors keep faith as Latin markets pick up

    The flood of European and US capital which has followed hard on the heels of Latin America’s wide ranging water privatisation programme showed no sign of slowing in June with Chile and Brazil among the main beneficiaries.

  • MWD board actions could open up California’s water market

    A series of policy initiatives adopted last month by the board of southern California’s Metropolitan Water District (MWD) could open the way to greater competition in the region’s water markets.

  • RCAMs draw lukewarm response from Ofwat

    Plans to split UK water companies in two enabling them to sell off their assets to non-profit mutual companies have drawn a cagey response from industry regulator Ofwat.

  • US companies missing out in global water markets

    US private operators are failing to cash in on global water privatisation markets because deregulation of their own domestic industry has not gone far enough. Unless US government policy changes to allow substantial private investment in water infrastructure, they will continue to be at a disadvantage.

Brief

  • Bidding for Hyder gathers pace

    THE COMPETITION BETWEEN Nomura Securities and Western Power Distribution (WPD) for control of Welsh utility Hyder gained momentum at the end of last month.

  • Essent takes majority in swb

    DUTCH MULTI-UTILITY GROUP ESSENT is to take over 51% of the Bremen utility swb in a DM1.1 billion deal. Swb has water sales of around 34Mm<sup>3</sup>/year.

  • Eurawasser wins 25-year Güstrow concession

    EURAWASSER has won a 25-year concession contract to handle water supply and wastewater treatment in the east German town of Güstrow.

  • Israel a step closer to importing water from Turkey

    A HIGH RANKING Israeli delegation travelled to Turkey last month to finalise plans to import up to 50Mm<sup>3</sup> of water annually from the Manavgat River. Israeli water experts are predicting a severe water shortage in 2001 unless alternative sources are found.

  • Mauritian dam ready by 2002

    THE BIGGEST DAM to be built in Mauritius is expected to be ready for water storage by July 2002.

  • St Petersburg steps up sewerage work

    THE ST PETERSBURG WATER UTILITY, VODOKANAL SP, is to accelerate work on the construction of the city’s south-western STP. The first stage of the project – originally started in 1987 – is now scheduled for completion in 2004 at a cost of $100 million.

  • TXU looking at a majority stake in Kiel utility

    THE GERMAN CITY OF KIEL is reported to be in exclusive negotiations with US owned TXU Europe over the purchase of 51% of its municipal utility.

  • VEW to sell stake in Gelsenwasser

    DIVESTMENT of the VEW Group’s 28% stake in Gelsenwasser is one of the measures required by the Federal Cartel Office before it will authorise the merger of VEW and RWE planned for later this summer, the two companies have announced.

Companies

Market insight

  • Why water?

    The Avalon Trust was founded two years ago to provide a full trust and investment service for individuals and institutions wishing to invest their funds in a socially responsible manner. In this month’s Investor’s View, Owen Quattlebaum, chief investment officer, explains why Avalon decided to set up a water fund.

Performer of the month

  • Vivendi stock drifts following news of three-way merger

    Vivendi dominated the news in Europe in June with the planned IPO of its Environment Unit and the three-way merger with Seagram and Canal Plus making the headlines. Shares in the French conglomerate ended the month lower amid concerns over the merger.