Vol 1, Issue 9 (September 2000)
Analysis
- A word from the Editor…
The full extent of what most of us had known for sometime finally emerged in detail last month. Rebecca Mark’s resignation from Azurix spells the end of an era for a group which has flattered to deceive. It is only a matter of time before Enron decides to cut its losses.
General
- Aguas de Limeira tariff dispute goes on
THERE IS NO END in sight to the judicial dispute between Consorcio Aguas de Limeira, jointly owned by Suez Lyonnaise des Eaux and the Brazilian Norberto Odebrecht group, and Limeira town council in São Paulo state over the 30-year basic sanitation concession.
- Aquamundo announces feasibility studies in Peru
AQUAMUNDO, the new joint venture between MVV, ABB and Bilfinger + Berger, is to conduct feasibility studies for water treatment and supply in three cities in Peru. The projects are supported with funds from the German development aid programme.
- Desalination holds the key to Israel’s water future
Israel will have to build a new 35MGD desalination plant every two years to prevent acute long term water shortages and meet its obligations to supply Jordan, according to newly-appointed water commissioner Shimon Tal.
- Esval board agrees to a rights issue
THE BOARD of Chile’s Esval (Empresa de Servicios Sanitarios de Valparaiso) has approved a rights issue to existing shareholders raising 32.4 billion Chilean pesos ($57 million) of additional equity.
- Germany faces liberalisation with considerable reluctance
Close on the heels of the electricity and gas industries, the German water market is poised on the brink of liberalisation.
- Israeli companies to work in Turkey’s Anatolia region
A NUMBER OF WATER PROJECTS in southeast Turkey are to be carried out by Israeli groups, reports Israel’s Ministry of Industry and Trade.
- Mezzogiorno plan underpinned by tariff hike
THE FIRST DRAFT of a new regional plan covering the southern areas of Italy appears to show that management of Mezzogiorno water resources is feasible without undue pressure on consumers or an unsustainable increase in water charges.
- Nile politics: Egypt\'s gamble
Cabinet ministers from Egypt, Ethiopia, Sudan and the six Great Lakes states met in Khartoum in August to discuss redistribution of Nile water rights. There are clear signs that Egypt is prepared to relax its position and go some way to relinquishing control of the river.
- Pakistan abandons Kalabagh dam
THE PAKISTAN GOVERNMENT has abandoned its plan to build the Kalabagh dam and will now explore other potential sites including one at Bhasha.
- Sabesp shows strong first half recovery
São Paulo state water company, Sabesp, the largest in Latin America, has registered first half profits of R$396.7 million (US$220 million) compared to a R$558 million (US$310 million) loss in the first half of 1999. The results are the company’s best ever half-yearly figures since it was founded in 1973.
- Spain to debate water management plan
THE POLITICAL DEBATE on Spain’s new draft national hydrological plan (LPHN) has started with a meeting of the National Water Council (CNA) in Madrid.
Brief
- Barra outfall update
THE FIRST PUBLIC AUDIENCE to discuss the Barra de Tijuca outfall pipeline and associated basic sanitation works was held on 30 August.
- Framework directive gets third reading
THE EUROPEAN PARLIAMENT was due to give a third reading to the proposed water framework directive as GWI went to press.
- Jordan and Libya sign Disi accord
JORDAN AND LIBYA have signed a co-operation agreement to implement the $650 million Disi-Amman water conveyor project intended to provide Amman with 100Mm<sup>3</sup>/year of water.
- Kemira acquires 15% of US water treatment company
KEMIRA CHEMICALS’ Swedish subsidiary Kemira Kemi AB has acquired a 15% stake in Kemiron Companies Inc of the US which will in turn acquire the water treatment business of Pioneer Chemicals.
- Sewerage upgrade for Israel’s Arab villages
THE ISRAELI GOVERNMENT is to allocate 480 million shekels ($120 million) to build modern sewerage infrastructure in Arab villages throughout the country.
- SLdE reports strong first half growth
SUEZ LYONNAISE DES EAUX has reported 29% growth in first half 2000 sales to €19.1 billion.
- SLdE rules out Emos merger
AGUAS DE BARCELONA and Suez Lyonnaise des Eaux, owners of a 42% stake in Chile’s Emos (Empresa Metropolitana de Obras Sanitarias), say they have no plans to merge the utility with the recently acquired Aguas Cordillera.
- Vivendi unloads more debt
VIVENDI ENVIRONNEMENT (VE) posted strong first half figures last month and its parent company, Vivendi, continued with the strategy of reducing debt by selling a 49.9% stake in Sithe North America.
Market insight
- Enron ponders its next move
With the resignation of CEO Rebecca Mark, Azurix’s future looks more uncertain than ever. The company has fallen short of original expectations from the June 1999 IPO, consistently underperforming and failing to meet analysts’ revenue estimates. The stock price has dropped 47% since the start of the year. Major shareholder Enron must now decide what to do with Azurix.
Performer of the month
- Sealed bids and now a court case
Western Power Distribution (WPD) finally emerged triumphant in the bitter four-month struggle for control of Hyder last month. But just as one point of contention had been resolved, another opened up when Severn Trent announced that it would be taking Dwr Cymru to court.
