Vol 13, Issue 2 (February 2012)
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.
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with difficulties – national programmes stall and demographic indicators fluctuate, meaning that each forecast is out of date almost as soon as it is published.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
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.
- Smarter differentiation
Christopher Gasson sees a competitive advantage in information technology.
- David Lloyd Owen - Of human bondage: debt usurps equity in the innovation game
Water companies account for just a fraction of a percent of global equity markets by capitalisation.
- CHART OF THE MONTH - Contracted desalination plants under 5,000m3/d, by combined capacity
This month’s chart shows the growing dominance enjoyed by GE in the smallscale desalination market over the last five years.
- 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?
- 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.
- When in Rome, grab a water award
GWI presents the list of companies and projects which have been shortlisted for this year’s Global Water Aw
- Desalination company of the year
For the desalination plant supplier which has made the greatest overall contribution to the desalination industry in 2011.
- Public water agency of the year
For the public sector organisation that has made the greatest contribution to meeting the challenges of water supply suring 2011.
- WATER REUSE PROJECT of the year
For the water reuse project that represents the most significant achievement for the industry in 2011.
- Desalination plant of the year
For the desalination plant commissioned during 2011 that represents the most impressive technical achievement in the industry.
- INDUSTRIAL WATER Project of the year
For the project commissioned in 2011 that represents the most impressive technical achievement in the field of industrial water.
- WATER DEAL of the year
For the deal, contracted in 2011, which has made the biggest contribution to the advancement of public-private partnerships in the international water sector.
- WATER TECHNOLOGY COMPANY OF THE YEAR
For the company which has made the most significant contribution in the field of water technology over the past year.