Vol 10, Issue 6 (June 2009)

Need to know

• THE RESULTS ARE IN

  * With first quarter results coming in from around the world, the impact of the recession on the water sector is becoming more clear.

• DESALINATION DIRECTIONS

  * Does water reuse complement desalination or compete with it?

• FUNDING FUN

  * The financial environment is also having an impact on desalination.

• POWER AND WATER

  * Financial close of Abu Dhabi’s Shuweihat 2 independent water and power project, expected in July, would be the first long-term project finance deal executed in 2009.

• PRIVATE WATER FUTURES

  * There are worries that the switch back to public finance in Saudi Arabia will spread from the power desal sector into the water and wastewater sector.

Analysis

• The T for Technology in EPC

  Christopher Gasson looks at the structural challenges of the water technology sector.

• Insight - David Lloyd Owen

  When it comes to public vs private services, the customer remains unheard.

• Global capital expenditure on water and wastewater-CHART

  This month’s chart shows our forecast for capital expenditure on water and wastewater over the next few years.

General

• Poseidon awaits crunch decisions

  The Carlsbad project may yet have a second lap of the permitting process to go. Christopher Gasson looks at what the marathon means from an investor perspective. Is the process so bad that it is good?

• Who is Poseidon Resources?

  It has taken a certain determination to get this far. Not everyone has stayed with it.

• Pall grows its water business

  The American MF membrane specialist is looking to grow its municipal water division as its industrial customers cut back their spending. How is it placed to succeed?

• Oman prepares to launch management contract

  The imminent tendering of a countrywide water management services contract heralds new territory for the Sultanate’s water sector.

• Amman looks to boost supply and plug the leaks

  Jordan is targeting institutional reform and greater private sector participation in its water sector. An innovative scheme to reduce non-revenue water in Amman is a sign of the potential opportunities.

• Revised contract for Jumeirah Golf Estates WWTP

  Construction of the downsized wastewater plant will resume under a restructured agreement, with an extended O&M contract for the French-Belgian consortium and a commitment to finalise financing by early 2010.

• Wrangling overshadows delivery of Jubail RO plant

  The 75,000m3/d temporary desalination plant at Jubail is being delivered in record time in shipping containers and on skids. Not surprisingly there have been some hiccoughs along the way.

• GE drops out of the race for Soreq

  GE has pulled out of Israel’s largest desalination project, which is struggling to attract financing. However, interest remains strong from bidders, with Siemens set to enter the fray.

• Water stocks pay the price of safety

  Having enjoyed a period of relative out-performance until March this year, the water sector has been lagging behind the broader stock exchange during the past three months.

• UK financial results divide winners and losers

  This year's results for quoted UK water companies were surprisingly positive. Suggestions of capex under-spend could mean trouble ahead for some, however.

• aqualia triumphs at New Cairo

  The Spanish-Egyptian consortium has netted Egypt's flagship wastewater PPP project. The strong pipeline of upcoming projects should provide unsuccessful bidders with another bite at the cherry.

• Pricing concerns remain over Shuweihat 2 financing

  The arrival of Marubeni and JBIC will boost efforts to secure financing for Abu Dhabi's latest IWPP. Recent precedents are expected to guide pricing.

• Taweelah chosen for next Abu Dhabi IWPP

  Abu Dhabi is turning its attention to its next greenfield power and desalination project. Taweelah, rather than Shuweihat, will be the setting.

• Valoriza wins €325m Guadalajara contract

  Sacyr's environmental services division has won a 25-year concession for the provincial capital.

• Portugal relaxes rules for water concessionaires

  New legislation will allow tariffs to be set three years in advance and free concessionaires from some financial obligations. The aim is encourage increased private sector participation in Portugal.

• Andalucian water agency removes water boss

  The former director-general of water for Spain has been removed from his latest post in Andalucia. Disagreements over reforms appear to be to blame.

• Italian watchdog finds increased compliance

  A year-long investigation into possible breaches of the law by ATOs has concluded. The majority are now in compliance, but calls remain for centralised regulation.

• Report gives Italian water sector the blues

  The latest edition of the “Blue Book” report finds low tariffs and politics are crippling the Italian water sector. Progress on reforms remains slow.

• Putting the boot into water footprinting

  Water footprinting is a well-supported concept, but complexity and a lack of agreement are hampering progress. GWI's Nadia Spaccarotella reports from Informa's London conference.

• Valencia announces big increase in reuse capacity

  The Valencian government plans to increase its reuse capacity by over one million m3/d. The proposal is still at a very early stage.

• India’s hunger for power boosts water sector

  A series of 10 large power projects are planned throughout India. Their water requirements will provide significant opportunities, finds GWI's Rama Rastogi.

• Aquatech wins $15m desal contract

  Aquatech has high hopes for expansion in India after landing the first of the UMPP desalination deals. It also intends to win municipal contracts.

• Wastewater project suffers blockage

  A legal dispute has shutdown a new wastewater treatment project, highlighting potential problems with oversight of PPP processes in China. GWI's Kathy Liu examines what went wrong.

• Malaysia’s new-look water sector

  Malaysia is centralising and liberalising its heavily-indebted water sector in an attempt to improve services. With state-led opposition and restrictive tendering practices, is it working in practice? GWI's Max Borchardt reports.

Brief

• In Brief - America

  * Veolia Water Solutions & Technologies has acquired worldwide rights to commercialise a newly patented Zero Discharge Desalination (ZDD) technology developed at the University of South Carolina by ZDD, Inc.

• In Brief - Middle East

  * Redal, the company in charge of water and wastewater services in the Moroccan capital Rabat and a wholly-owned subsidiary of Veolia Water, has appointed Moroccan firm INGEMA to carry out a feasibility study into the reuse of treated effluent from the city's wastewater treatment plants in municipal irrigation.

• In Brief - Europe

  * Rome's leading utility Acea will finalise a joint venture with French giant Suez by the end of August, the Italian company's chairman, Giancarlo Cremonesi, told the Italian press at the end of May.

Market insight

• Water testing – pass or fail?

  Despite suffering pressure from the downturn, Gordon Cope finds optimism for growth in the water testing sector, sparked by increasing number of substances requiring regulation.

• Something in the water

  Expanding geographical markets and increased regulation are predicted to increase growth in the water testing market.