Vol 10, Issue 5 (May 2009)

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Need to know

  • THE BIG THREE

    * Bids are due on Europe’s biggest water supply contract, serving the Ile-de-France region around Paris, on 22nd June.

  • STOCKS AND WRONG ’UNS

    * Investors were impressed by the Veolia figures, with the shares rising by 30% in the month to 10th May (see GWI Water Index p10).

  • ENERGY RECOVERY

    * US pump manufacturer Flowserve has bought Calder for an undisclosed amount.

  • SEA GODS

    * Poseidon jumped another hurdle in its seemingly endless race to get its 189,000m3/d desalination plant at Carlsbad past the regulators.

Analysis

General

  • A fresh approach to project finance

    The Middle East project finance market is not as sick as it seems. All parties will need to show a greater degree of flexibiity if the market is to evolve.

  • Ad Dur financing set for over-subscription

    The debt arrangers for the Ad Dur IWPP in Bahrain are confident of securing final commitments from banks. They had to sweeten the terms slightly to get the deal away.

  • Sembcorp loses its grip on Salalah

    A push-back from banks on the debt package to fund the 68,200m3/d and 400MW Salalah IWPP in Oman has re-ignited competition for the preferred bidder role.

  • Firmer market sentiment boosts water stocks

    Quoted water stocks continued to rise this month, buoyed by optimism that the economic recovery is finally underway. The first quarter results season was not all rosy, however.

  • Desal for Egypt’s Red Sea coast

    Egypt is looking to meet the rising water demand from tourism without the help of the Nile. Reuse is also on the agenda.

  • Abu Dhabi wastewater deal takes shape

    The group of banks responsible for financing Abu Dhabi’s ISTP2 project should be finalised later this month. The bridging loan expires in August.

  • A long Ku-wait for MED at Az-Zour North

    The tender for the first stage of Kuwait’s mammoth power and water facility is expected by the middle of the year. MED specialists will have to wait even longer.

  • Report highlights West Bank’s water woes

    The stark reality of water and wastewater investment needs in the West Bank is summarised in a new report from the World Bank. It makes for depressing reading.

  • Israel’s desal plans run out of coastline

    Israel has run out of coastal locations to support its growing appetite for seawater desalination. With long-term capacity forecasts now exceeding 4 million m3/d, what are its options?

  • Time for Acciona on a broad front

    Acciona Agua thinks it can double its international business within three years. Managing director Luis Castilla outlines his strategy to GWI.

  • Befesa’s Bravo in the face of the crisis

    The economic crisis has failed to put Befesa’s growth plans on ice. Creative thinking has resulted in a resilient business mix which allows for expansion at home and abroad.

  • Aqualia’s game of patience

    aqualia is hoping it can ignore the credit crisis and grow the international side of its business. Financing domestic reuse projects remains a challenge.

  • Christ rises from the ashes to breathe again

    It seems that Christ Water may have finally convinced investors that their fears over bankruptcy are unfounded. The stock has risen by 160% in the last two weeks.

  • Isle of the big private water operators

    The decision to keep the Ile-de-France water management contract as a single unit will restrict competition from foreign private water operators. Incumbent Veolia will still have to fight to renew the deal.

  • The truth behind Italy’s illegal abstraction

    Illegal activities may account for up to 20% of Italy’s total water abstraction. There is a high price to pay.

  • Flow of Czech water tenders expected to rise

    Impending EU compliance deadlines will result in a rush of wastewater tenders from the Czech Republic over the next 18 months. With EU funds running out, the government has drafted in extra help.

  • Cave Review identifies £2.5bn of savings

    Martin Cave's review of competition and innovation has some important messages for the UK water industry.

  • Atotonilco tender gives boost to Mexican reuse

    As the tender process for Mexico’s giant Atotonilco WWTP finally gets underway, Mark Walsh speaks to the man in charge of delivering the project.

  • Building the case for design-build

    Kathy Shandling investigates the push towards the wider adoption of an alternative delivery model for US water and wastewater projects.

  • Karachi aims to double water capacity

    A $270 million project to double the capacity of Karachi’s water supply system could be tendered within a year. GWI’s Rama Rastogi reports.

  • China's new wastewater formula

    The stimulus package has threatened the Chinese government’s private finance agenda for wastewater, prompting a rule change. Kathy Liu reports.

  • Fund targets Chinese urban water

    China's newest infrastructure fund is aiming for solid returns by acquiring existing water and wastewater assets in the operating phase.

  • GHD sweeps into the US

    Warren Traves, the new head of GHD’s water business, talks to GWI’s Max Borchardt about bringing Australian expertise to the US market.

Brief

  • In Brief - Middle East

    Septech and GE are understood to have been awarded a contract to provide a 25,000m3/d containerised SWRO plant in Muscat, Oman.

  • In Brief - Europe

    Water network pressure control specialist i2O Water has successfully completed a £4.2 million fundraising round, spearheaded by a consortium of venture capital funds led by Swarraton Partners.

  • In Brief - Americas

    Flow control giant Flowserve Corporation has acquired Swiss energy recovery specialist Calder AG for an undisclosed sum, believed to be in the $80-100 million range.

  • In Brief - Asia

    Manila Water Company, Manila’s East Zone concessionaire, is negotiating a joint venture with DMCI-MPIC Water Company Inc. (DMWCI), the owner of Maynilad Water, the West Zone concessionaire, to provide infrastructure to supply bulk water to Bulacan, a province neighbouring Manila with a population of around 5.5 million people.

Market insight