Vol 1, Issue 8 (August 2000)

Analysis

  • A word from the Editor…

    The Middle East is our main focus this month. Economic growth and population pressure have put a tremendous strain on existing resources and increased the demand for power and water.

General

  • Barra de Tijuca outfall project launched

    THE PRELIMINARY PROSPECTUS for the water and sewerage concession for the Barra de Tijuca region of Greater Rio de Janeiro was published at the end of July.

  • Brussels South starts as Commission issues its final warning

    Seven months behind schedule, and long overdue, the Brussels South WwTP finally started operating on 1 August. Bid evaluation is well under way for the Brussels North scheme, which will be one of the world’s largest BOOT sewerage projects.

  • Hyder future still uncertain

    US-OWNED Western Power Distribution (WPD) raised the stakes in the bidding battle for Hyder at the start of August, just 15 minutes after Nomura Securities made a new cash offer for the Welsh utility.

  • Middle East investment: regulatory reform first

    The need for investment in the Middle East to provide the infrastructure for water and sewerage services is huge. Economic growth and population pressure are putting a tremendous strain on existing resources and creating a demand for new infrastructure. Capital requirements are so great that the private sector cannot be ignored.

  • Project Tiete gets another $400 million

    THE STATE GOVERNMENT of São Paulo and the Inter-American Development Bank (IADB) have signed a $400 million finance contract for the second stage of the River Tiete clean-up project.

  • The Qatari drive for privatisation

    THE QATARI GOVERNMENT has taken a significant step towards privatising its power and water sector.

Brief

  • EBRD to consider Tallinn Water loan

    THE BOARD of the London-based European Bank for Reconstruction and Development is to make a decision on a loan of €22.5 million to Tallinn Water (AS Tallinna Vesi) on 5 September. The board will also consider a proposal to invest €10 million in the company.

  • Embasa auction could run to early 2001

    THE PRIVATISATION OF EMBASA is not likely to be finalised until next year according to the Brazilian National Development Bank, BNDES.

  • Iran denies latest Karun transfer plan

    IRAN HAS DENIED press reports which claimed that Tehran had offered to supply Kuwait with water from the Karun river.

  • Iran moves on Taleghan dam

    THE TEHRAN REGIONAL WATER BOARD has invited companies to apply to prequalify by 10 September for the turnkey finance, design, construction, installation and commissioning of the Taleghan dam and hydroelectric project.

  • Japanese funding for Brazilian sewage projects

    THE JAPAN BANK for International Co-operation (JBIC) is to provide $65 million for basic sanitation in São Luiz, capital of Maranhao state, and $108 million for improving existing sewage systems in the states of Bahia, Ceara and Paraiba in the north-east of Brazil and Mato Grosso in the west of the country.

  • Maybank arranges $20 million loan for Ho Chi Minh BOT

    MALAYSIAN BANKING GROUP, MAYBANK, has arranged a $20 million syndicated loan for the Binh An Water Corporation to finance the development of the 100,000m<sup>3</sup>/d Binh An WTP in Ho Chi Minh City.

  • More criticism of China’s Three Gorges Dam

    A PETITION signed by 53 senior Chinese engineers and academics has been sent to the government – the second such petition this year – warning that the Three Gorges Dam project is riddled with technical and economic difficulties.

  • Multi-utility holding set up in Darmstadt

    A MULTI-UTILITY holding is to be set up in Darmstadt to combine the city’s water and energy supply.

  • Romanian deals closed

    THREE CONTRACTS worth $10.7 million for the rehabilitation of the sewerage and water supply systems for the Valea Jiului, Brasov and Mangalia municipalities in Romania have been signed with three companies. Funding is coming from the European Commission and EBRD.

  • Suez completes United Water Resources acquisition

    SUEZ LYONNAISE DES EAU X (SLdE) has acquired 67% of United Water Resources (UWR), the second largest water distribution company in the US. The move gives SLdE total control of UWR on the regulated US market.

  • Vivendi bolsters Czech presence

    VIVENDI WATER is to increase its 40% stake in the Czech water services and sewage management company, Severoceske vodovody a kanalizace (ScVK), towards the end of this month, according to chief executive Philippe Guitard.

Companies

  • Strategic alliances in water

    To compete with the large operators that dominate the industry, the water company of the future needs to be highly competitive, focused and well capitalised. Neil McDougall, chief executive of Biwater Capital, the recently formed joint venture between Nuon NV of the Netherlands and the UK’s Biwater plc, speaks to GWI’s Peter Allison about the advantages of strategic partnering and how JVs can achieve critical mass in the emerging global water market.

Market insight

  • The rising tide of water markets

    Water is rapidly changing from a political and social good to a market commodity as worldwide shortages beg for creative solutions. Globally, annual revenues for this industry are estimated at $300 billion. Because of the phenomenal growth, some observers see water as the oil of the 21st century – in parts of the world, water already commands as much as a barrel of oil. Clay Landry of the Political Economy Research Center (PERC) in Montana writes that the emergence of markets where rights to water are traded has fuelled much of this growth.

Performer of the month