Vol 11, Issue 5 (May 2010)
Need to know
- ASIANS ON THE MOVE
A Mitsubishi-led consortium has bought United Utilities' Australian interests, suggesting that Japanese companies are becoming more serious about their international expansion strategy.
- BIG PLANTS
The 1,025,000m3/d Ras Azzour plant will be the largest in the world (although a pedant might point out that it is essentially two co-located plants: one thermal (expected to be 725,000m3/d) and one membrane (expected to be 300,000m3/d).
- GOING PRIVATE
Public-private partnerships seem to be making headway in various markets around the world. In the US, legislation to lift the cap on private activity bonds for water projects is moving ahead smoothly.
- LOST IN TRANSLATION
The Chinese water sector continues to throw up improbable valuations. In March, we saw Chongqing Water attract a valuation of 21 x revenues at its IPO.
- FRENCH RESULTS
Both Suez Environnement and Veolia Environnement have posted solid firstquarter results.
Analysis
- An end to PIG-headedness
Christopher Gasson looks at how water financing contributed to the debt crisis, and how the situation may be reversed.
- David Lloyd Owen - Studies and data are one thing – making them matter is another
One of the most interesting aspects of the OECD meeting in March was the evident gap between data gathering and its broader application.
- Chart of the Month - Significant thermal desal metals prices since 2005
This month's chart is the companion to the chart on page 12 which illustrates the capital cost of desalination plants by delivery method.
General
- Sembcorp sets out its global ambitions
Sembcorp's swoop on Cascal clearly demonstrates the extent of its ambition. Slow growth in the UK could suggest a portfolio re-shuffle.
- ACWA Power-Sasakura bids low at Ras Azzour
APS has submitted a bullish bid for the desalination component of the Ras Azzour project. Does it have the references to back it up?
- Yanbu 3 RFQ launch imminent
A hectic period for contractors in Saudi Arabia is set to continue.
- A new foundation for Egypt's PPP market
Egypt's new PPP law will build confidence among developers and financiers about the transparency of the buoyant Egyptian water and wastewater market.
- The structure of Egypt’s PPP law
The new legislation will make life easier for both bidders and clients.
- Egypt’s local banks reach for their staplers
A new initiative could streamline the financing of large-scale infrastructure PPPs in Egypt. How will it work?
- Structuring Oman's water future
The expanding opportunities for private water operators in Oman could herald a broader restructuring of the Sultanate’s water sector.
- AquaSwiss eyes MENA desal references
IDE Technologies has always been restricted as to where it can market its thermal desalination solutions. A unique agreement will allow a new competitor to take the technology to clients in the Arab world.
- Reservoirs of untapped energy
Two new deals underscore the potential for generating energy from solar panels located on static water bodies. It could be an important new revenue source for water utilities.
- Changing course for the future
A new report by Severn Trent identifies capital savings of £10 billion for the UK water industry between 2015 and 2030. What’s the catch?
- A big fish in a shrinking pond
The need to restore profitability means that international expansion has never been more important for Ferrovial’s water arm. Cadagua boss Antonio Casado spoke to GWI about his plans for the future.
- Mitsubishi consortium takes UU Australia
United Utilities is close to exiting its international non-regulated business. The sale of its Australian arm is set to be followed by a wholesale exit from Eastern Europe.
- Uncertainty continues in Italian water sector
A referendum campaign to repeal recent legislation overhauling the Italian water sector is gathering momentum. Some of its advocates are already breaking ranks.
- Australians paying more for less
New data shows that capital expenditure by urban water utilities in Australia virtually doubled last year. Now, the battle is on to restore profitability in the light of declining consumption and rising operating budgets.
- Origin Water’s stock pot boils over
The IPO of Beijing Origin Water broke records when it priced at the end of April, but do the facts support the wild outperformance? GWI’s Kathy Liu asks whether the herd mentality is always right.
- The "O" that completes the circle
Convincing US municipalities to consider the full lifecycle cost of a new treatment plant is not as easy as it sounds. Emily Pickrell examines the anatomy of the design-build-operate model.
Brief
- MIDDLE EAST WATER NEWS BRIEF
The $10 million order energy recovery contract for the 500,000m3/d desalination plant at Soreq in Israel has been awarded to Flowserve’s Calder division, which will supply its DWEER units to the facility.
- EUROPE WATER NEWS BRIEF
The EBRD is considering providing a sovereign loan of up to €30 million to the Canton of Sarajevo, the capital of Bosnia and Herzegovina, to finance the upgrade and replacement of its water and sewerage network in order to reduce water losses.
- ASIA WATER NEWS BRIEF
A joint venture of Suez Environnement, Chongqing Water Group and Changshou Chemical Industrial Park Development and Construction Company has secured a 30-year concession, with a possible 20-year extension, for industrial water services in China’s Chongqing Changshou Chemical Industrial Park.
Companies
- American Water unveils ROE strategy
For the first time since going public, American Water has revealed how it intends to narrow the gap between what it earns on rate base, and what it is authorised to earn. It is also more upbeat on its full-year guidance for 2010.
- Cascal disputes “coercive” Sembcorp offer
An unsolicited take-over bid which sent Cascal's stock tumbling in late April has caused a storm. The company is now threatening legal action against its erstwhile parent, Biwater.
- Water stocks survive the flash crash
Global water stocks outstripped most major equity indices last month, despite a poor performance from China. Greater visibility on the prospects for 2010 led a number of companies to revise full-year guidance.
Market insight
- The rush to pay the barnacle bill
New regulations mean that companies around the world are vying for a slice of the lucrative ballast water treatment market. Gord Cope asks whether it’s all just a flash in the pan.
- All set for ballast-off
Approximately 10 billion m3 of ballast water is moved around the world each year in the course of maritime commerce.
Opinion
- India's inheritance of loss
Charles Bodhi steps onto a creaky bridge in India’s water sector.
