Vol 11, Issue 11 (November 2010)
Need to know
- DESAL PUZZLES
* The bids came in for the Tuas II desal plant in Singapore soon after we went to press last month. Hyflux was in the lead with a gobsmacking first-year water price of US$0.35/m3, which scarcely seems to be enough to cover the energy costs of seawater desalination.
- TWO STEPS BACK
* Indianapolis is terminating Veolia’s contract to run water services for the city, following its decision to sell its water and wastewater utility to local non-profit Citizens Energy.
- M&A MACHINATIONS
* Marubeni has agreed to buy Aguas Nuevas in Chile. It is the second Chilean utility to be bagged by the Japanese trading house, and according to Kazuhiro Uchino from Marubeni’s Environment Infrastructure Department, it is just the beginning of the company’s push into Latin America.
- REASONS TO BE CHEERFUL
* China’s long awaited desalination boom may finally be on the way.
- Taking politics out of water
Christopher Gasson asks why America can’t afford good water systems.
- David Lloyd Owen - After Suez’s exit, La Paz and El Alto haven’t done so well with their water.
Usually, when a private sector participation contract is terminated, you hear precious little about what happened next.
- Chart of the Month - Daily water service in selected Indian cities (in hours)
This month’s chart comes from Indian water utility data now available on the World Bank’s IB-Net service.
- T’was Tuas, Twice
The devil will be in the detail when it comes to awarding Singapore’s next large-scale desalination contract, writes Charles Bodhi.
- It’s really easy cheesy!
Emma Welsh urges you to take part in the 2011 Global Water Awards.
- The key to safeguarding the Nile’s future
Egypt is thinking of offering TSE sales contracts to the private sector to increase the volumes of wastewater it reuses. Will the government’s subsidy commitment scupper the plans?
- Change of tack at Tubli
Bahrain has abandoned plans to expand its biggest WWTP. It now hopes to attract more developer interest by commissioning a brand new facility.
- Jordanian ministry celebrates tariff rise
The first serious rise in Jordanian water tariffs for over a decade is set to take effect in January. It is part of a longer-term push towards full cost recovery in the kingdom.
- Stretching Israel’s desal capacity to the limit
A new proposal by the Water Authority to increase production at Palmachim and Hadera is not universally popular. It seems there are other ways to alleviate the short-term water shortage.
- Taking Ugandan water PPPs to the next level
Local private sector operators in Uganda have more than proved themselves over the past decade. Now, the government is looking to reward them with more responsibility.
- Norit readies for a new chapter of growth
The Dutch process technology specialist has continued to deliver strong growth throughout the economic downturn. Is it doing too well for its own good?
- Value from waste that really Paques a punch
The Dutch wastewater treatment specialist is celebrating its 50th birthday. It has taken that long to become one of the hottest new technology companies in the water business. Christopher Gasson investigates.
- Andalucía launches €1.7bn wastewater plan
Wastewater treatment and reuse in Southern Spain is set to receive a renewed boost over the next five years. Who will pay for the new infrastructure?
- Italian opposition turns its back on “public water”
Fresh impetus has been given to the potential role of private water operators in Italy after its opposition leader came out in favour of a tariff-based operating model.
- GE Water boosts tech spend
GE Water has ramped up its investment in technology since being integrated into the group’s power business. CEO Heiner Markhoff talks to GWI.
- Valencia details €500m BOT programme
The cash-strapped Spanish region is turning to the private sector to fund its near-term roll-out of wastewater and reuse infrastructure. The risk transfer protocol still has to be hammered out.
- UU’s disposals programme ends with a twist
The decision by United Utilities to retain its stake in Tallinna Vesi took the market by surprise. The reason for the move may lie in the company’s recent tariff application.
- Streamlining the UK regulatory regime
Ofwat has conceded that its current approach to water regulation is not sustainable in the long term. Moving to a risk-based model could save the water companies money.
- UU Australia to diversify under new ownership
United Utilities’ former Australian arm is preparing to broaden its horizons under Japanese ownership. Max Borchardt talks to incoming managing director François Gouws.
- The keys to divining China’s desal future
A change in government policy and a relaxing of bank lending criteria have kick-started China’s desal market. Where can it go from here? Kathy Liu reports.
- The bureaucracy behind Queensland’s tariff rises
The addition of extra red tape was a major contributor to tariff rises in the state, according to a new report.
- Three isn’t a crowd – it’s just a beginning
Marubeni’s third water deal in Latin America is just the start of the company’s ambitions for the continent. Synergies with its existing Chilean operations are likely to be limited. GWI’s Asia editor David Black reports.
- Gunning for global glory
METI wants to help fund Japan’s water industry as it plays catch-up in the global market.
- Peru promotes treated wastewater reuse
New guidelines approved by the Peruvian government will help to further the role of reuse in the country’s water resourcing strategy. GWI’s Fabiola Alvarado investigates.
- MIDDLE EAST WATER IN BRIEF
* Hyflux has been awarded the $100 million EPC contract for the 40,000m3/d Tobruk SWRO plant in Libya.
- EUROPE WATER IN BRIEF
* Thames Water drew €1.7 billion of demand for its new €500 million 6-year bond in early November – its first in the currency since February 2009. Close to 70% of the paper went to investors outside the UK, and the bonds tightened encouragingly in the after-market.
- ASIA WATER IN BRIEF
* Galaxy NewSpring, the joint venture between Mitsui and Hyflux, announced that it had secured approximately 93.88% of Hyf lux Water Trust by the time its exit offer closed on 12 November. Galaxy plans to acquire the remaining 6.12% by the end of December.
- AMERICA WATER IN BRIEF
* Patrick Cairo has been appointed to the position of senior VP of corporate development at United Water.
- United moves to outflank the opposition
United Water CEO Bertrand Camus talks to GWI about how the business is positioning itself to meet the challenges of America’s failing water infrastructure.
GWI Water Index
- Water stocks cruise to new highs on QE2
The latest round of quantitative easing in the US was received positively by equity markets everywhere. The Americas segment of the GWI Global Water Index climbed above 100 for the first time since its inception.
- The new crowd at private water’s top table
David Lloyd Owen reviews a dozen editions of the Pinsent Masons Water Yearbook and sees a reshuffling amongst the major players.