Vol 13, Issue 2 (February 2012)

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Need to know

  • THE MELBOURNE LEGACY

    Suez Environnement’s full-year results held little in the way of surprises for the market when they were announced on 8th February.

  • COUNTER-REFORMATION

    Ireland and India both announced public consultation phases ahead of sweeping water reform packages this month.

  • SURPLUS TO REQUIREMENT

    Accurately forecasting desalination procurement trends is fraught with difficulties – national programmes stall and demographic indicators fluctuate, meaning that each forecast is out of date almost as soon as it is published.

  • PRODUCING THE GOODS

    Another area where desal is really taking off is in the Australian natural gas markets.

  • LOOKING EAST

    The European Bank for Reconstruction and Development (EBRD) did not let up on its water lending activities in 2011

  • CORRECTION

    In last month’s stock market review, we reported that the KBC Eco Water Fund had seen its assets under management fall by 45% to €128 million last year.

Analysis

General

  • Stimulating Ireland’s water reform process

    Austerity measures mean that Ireland faces an ambitious timetable to implement its water reform process. NewERA minister Fergus O’Dowd discusses the challenges with GWI.

  • Defining a roadmap for PSP in the new Ireland

    The Irish government has ruled out privatising its new water authority per se. What are the prospects for private sector participation in the post-reform era?

  • Bellwether water stocks outperform

    A weighted gain of 5% for the GWI Water Index this month masked much stronger individual performances from some of the large-cap component stocks.

  • Balearics turn their backs on desal

    Four privately owned desalination plants in the Balearic islands have been left high and dry after Spain’s economic tide went out. It is a kick in the teeth for Spain’s new ruling party.

  • Murcia eyes desal dismantling

    The region’s water minister has proposed selling off a number of underused desalination plants. Who will buy?

  • Investors take advantage of Thames liquidity

    Trading in unlisted Thames Water’s equity has been brisk in recent months, with many of the original shareholders monetising their holdings. What are the trends?

  • Veolia Water puts differentiation first

    Jean-Michel Herrewyn turned around Veolia Water Solutions & Technologies by focusing on differentiated technologies. Now he is applying the same logic to the operating side of the business – with an interesting twist.

  • How do you solve a problem like Veolia?

    After a series of profit warnings and write-offs, the markets are disinclined to believe what Veolia’s management has to say. It is the toughest challenge any public company can face, but CEO Antoine Frérot is not giving up.

  • Reprieve for Tallinna Vesi shares

    The suspension of an immediate tariff reduction has given some short-term dividend protection to investors. The saga is far from over, however.

  • EBRD extends its horizons as pipeline grows

    An extended mandate means the European Bank for Reconstruction and Development is looking to enter new territories. Its water lending activities in 2011 gave a taste of things to come.

  • Romania’s new water revolution

    A major initiative by the EBRD mobilised €650 million in EU structural funds in 2011. It could pave the way for more private sector participation.

  • aqualia in as Abu Dhabi updates O&Ms

    The appointment of new wastewater operators for the next seven years will enable Abu Dhabi to get the best from its ever-improving sewerage asset base. Its next challenge will be to find takers for all the treated water produced.

  • Topping up Dubai’s old wells

    The emirate has spare desalination capacity following a drop in economic projections. Its neighbour Abu Dhabi has shown the way forward.

  • Salalah investor seeks more water assets

    Bahraini fund manager Instrata has made its latest investment in secondary Middle Eastern power and water assets. While the low-risk returns are attractive, supporting developer groups still represents the best option for investors.

  • Kuwait moves forward with second IWPP

    The country has become the focus of interest for private developers in the power and water market. Progress on a second privately funded project has added to the excitement.

  • Subsidised sales drive TSE reuse in Dubai

    2012 could be the first year in which the emirate does not dispose of unwanted treated sewage effluent into the Dubai Creek. The decision to sell TSE to farmers at a cut-price rate is behind the rise in its popularity.

  • How much desal is too much?

    Israel is predicting an operational surplus of desalinated water as soon as next year. What are its options?

  • Palmachim expansion financing sealed

    The debt package behind the doubling of Israel’s Palmachim desalination plant is a further feather in the cap of the country’s largest commercial bank. It has the option to syndicate out some of the debt at a later date.

  • India’s fresh approach to water management

    The private sector is set to play a more prominent role in water services provision in India under new plans drafted by the water ministry. Disparate responsibilities could make implementation tricky.

  • Tri-Tech tries out new markets for size

    Co-president Phil Fan speaks to GWI’s Asia editor Olivia Jensen about the Nasdaq-listed company’s rapid expansion into the global market, and its future acquisition plans.

  • Chinese water IPO pipeline slows to a trickle

    Only one water company has applied for a stock market listing in mainland China this year. What is holding the rest back?

  • D-day for Australia’s home-grown desalters

    A series of strategic partnerships means that investors with exposure to Australia’s listed desalination companies have enjoyed a bumper month of outperformance.

  • Heckmann feels the heat

    Investors’ faith in Heckmann Corporation has been shaken in recent weeks, with the shares losing almost a quarter of their value. What went wrong?

Brief

  • Europe Water In Brief

    Veolia has chosen Deutsche Bank and JP Morgan to advise it on the sale of its UK regulated water assets.

  • Middle East Water In Brief

    Iraq’s Ministry of Water Resources is looking into deploying desalination plants to treat and reuse the brackish water runoff passing through the huge Main Outfall Drain (MOD) in the middle of the country.

  • ASIA WATER IN BRIEF

    The International Finance Corporation is considering an investment of up to $17 million in Norwegian desalination company Aqualyng in order to support the development of its Chinese business.

  • AMERICAS WATER IN BRIEF

    Heckmann Corporation filed a universal shelf in mid-February for up to $400 million of new securities.

Market insight

Opinion