Vol 10, Issue 10 (October 2009)

Need to know

• MANAGEMENT CHANGES AT SUEZ & VEOLIA ENVIRONNEMENT

  Suez Environnement boss Jean-Louis Chaussade has decided that he doesn’t have time to head the international division of the business as well.

• IN THE DOG HOUSE

  Canadian water and paper technology group GLV has made a €96 million offer for Christ Water Technology.

• WATER SCARCITY STRATEGIES FOR ABU DHABI

  The Abu Dhabi Water and Electricity Authority is investigating the possibility of storing desalinated water underground.

• FINANCINGS

  The Malaysian government is lining up $5.9 billion of finance for the national water asset holding company, Pengurusan Aset Air Berhad.

Analysis

• Saudi Arabia's income from oil will fall 50% in 20 years at current consumption

  Christopher Gasson looks at the implications of declining fuel availability.

• David Lloyd- Owen Politicians and the public need to walk before the sector can fly.

  21st Century Water, a conference organised by the Oxford Centre for Water Research earlier this month, highlighted a series of policy and practical tensions about how water and wastewater could and should be managed.

• New desalination capacity 1980-2009-chart

  This month’s chart is a sneak preview of the 22nd GWI DesalData/IDA Worldwide Desalting Plant Inventory.

• Degrémont embraces continuity and change

  COO Rémi Lantier assumed the mantle of Degrémont CEO from Thierry Mallet on 1st October. The natural cycle of succession should not imply a resistance to outside influences. GWI talks to the outgoing and incoming CEOs.

• Chaussade shuffles the pack at Suez Environnement

  In his first major staff shake-up since going public, the Suez Environnement boss has been careful not to rock the boat.

• Battle to be BVI bulk water supplier

  Consolidated Water has been riding high as the BVI’s bulk water supplier for almost 20 years. It is amazing no one tried to topple them sooner

General

• The Reuse Revolution

  Emma Welsh thinks the new GWI/PUB reuse report could change the way governments think about the concept of water reuse.

• Dilutive share issues depress water stocks

  A rash of secondary offerings sent individual shares tumbling this month, as the GWI Global Water Index struggled to stay in positive territory

• SWWC emerges from “restatement hell”

  SouthWest Water Company has put a series of delinquent filings and the threat of a Nasdaq delisting behind it. Shareholder litigation could still keep a lid on the share price.

• GLV broadens its global horizons

  The Canadian water treatment specialist faces an uphill battle to bring Christ Water’s margins in line with the rest of its business. Has it bitten off more than it can chew?

• Consolidated Water faces up to the competition

  The nagging uncertainty over Consolidated Water’s historic revenues in the British Virgin Islands is nearly over. Meanwhile, a proposal from BIwater to build a rival desal plant on Tortola has created a new cause for concern.

• Amplio Filtration back on the acquisition trail

  After buying Basin Water’s assets, Andrea Davi believes he can grow the business into a $100 million filtration powerhouse. At least he is starting with a clean sheet.

• A new model for US private water finance

  US utilities need private money, and infrastructure funds want to invest. MWH’s Richard Splete thinks he has developed a financing model which works for both sides – and the voters.

• The tale of the elephant and the catfish

  Kathy Liu celebrates China’s 60th anniversary and squares up to criticism of how its water sector has been run.

• GE stresses its commitment to the water market

  The CEO of GE’s Power and Water business dismisses rumours of poor performance and imminent divestiture.

• The end of the road for Suez in Lianjiang

  The Lianjiang government has bought the 100,000m3/d Tangshan drinking water plant back from Suez Environnement for RMB45 million ($6.6 million) – just over half what the company had hoped to get for it.

• Spain’s flirtation with private sector finance

  With central government funding due to be slashed next year, what are the prospects for private finance gaining a greater foothold in the Spanish water sector?

• In Queensland, one dam equals two desal plants

  The Queensland government has approved a new dam in favour of a pair of desal plants, reports Max Borchardt. Has it gone back to the Dark Ages?

• BWSSB shows the way for India’s utilities

  The Bangalore utility’s financial reforms are helping it break the cycle of low revenues and low investment. GWI’s Rama Rastogi looks at the lessons for other Indian cities.

• Italian operators slam “privatisation” decree

  There is a growing feeling that a new Italian government decree favouring private companies unfairly discrimates against efficient public sector water operators. It could also drive municipalities into forced stock sales.

• Water pricing – the key to WFD compliance?

  The power of the European agricultural lobby could slow the implementation of far-reaching water pricing policies. Identifying polluters is only part of the problem.

• Survey reveals investor dismay in the UK

  A new survey on behalf of Water UK has revealed the extent of investors’ dissatisfaction with Ofwat’s draft determinations. Many have already voted with their feet.

• European court stymies Eurawasser’s ambitions

  A European court has overturned a previous ruling after defining the nature of a service concession. The move has implications for competition in the German water sector.

• Heading for a headstart at Tubli

  Bahrain wants to ensure a smooth procurement process for the Tubli WWTP upgrade. The rationale for the expansion is not clear to everyone.

• Jordan rejigs desalination plans at Aqaba

  The feasibility of large-scale desalination in Jordan could at last be put to the test. The government is already canvassing appetite among multilateral lenders.

• Shuweihat 2 financing oversubscribed

  The sponsors’ refusal to budge on the cost of the Shuweihat 2 financing package proved prescient. A tightening in the wider market even drew in a few last-minute subscribers.

• Saudi reuse scheme gains strong support

  The National Water Company’s plan for private water reuse concessions is popular with investors and customers.

• SWCC moves ahead with Ras Azzour tender

  Saudi Arabia’s Saline Water Conversion Corporation will follow the tendering of the Ras Azzour EPC contract with the long-awaited Shuqaiq 3 IWPP.

• Aggressive capex model seals PEI victory at Mactaa

  Pump Engineering’s breakthrough into the large-scale SWRO market marks new territory in the energy recovery market. It may not be the end of the story for isobaric devices, however.

• ADWEA mulls large-scale aquifer storage

  The emirate of Abu Dhabi is looking below ground to improve its water storage capabilities. It sends an important message about sustainability in the region.

• Israel well ahead on decontamination

  Entrepreneur Maccabi Carasso is revitalising contaminated wells in Israel.

• Malaysia seeks funds for water reform

  A new debt programme will provide the funds to take Malaysia’s water reform to the next level. Some states still prefer to borrow on their own. Max Borchardt reports from Kuala Lumpur.

Brief

• AMERICAS WATER NEWS IN BRIEF

  United Water has renewed its water services agreement with the community of Huber Heights, Ohio.

• ASIA WATER NEWS IN BRIEF

  * Energy Recovery, Inc. has won the contract to supply its PX Pressure Exchanger energy recovery devices to the 140,000m3/d Southern Seawater Desalination Plant (SSDP) in Western Australia.

• EUROPE WATER NEWS IN BRIEF

  * Glasgow-based water and sewerage operator Aimera has become the fifth company to offer water services to businesses in Scotland under the competition regime, while Wessex Water has also applied for a water and sewerage licence.

• MIDDLE EAST WATER NEWS IN BRIEF

  * Shivsu Canadian Clear International has completed the installation of a pair of containerised SWRO plants in Oman and Egypt.

Market insight

• Pure water, semiconductors and the recession

  Pure water is vital for the survival of the $250 billion global semiconductor industry. Cost pressures brought on by the recession are filtering through to water treatment equipment manufacturers, as Gord Cope finds out.

Opinion

• Build-Ignore-Rebuild in India

  Charles Bodhi discovers a new method of doing business in India.

• Irrigating a hot potato

  Ongoing resistance from irrigators means that many of Spain’s new desal plants could end up sitting idle. GWI’s Ray Delagua looks at the problem.