Vol 13, Issue 5 (May 2012)
Need to know
- UNFISIABLE
The rumour mill informs us that the 550,000m3/d Yanbu 3 desalination project in Saudi Arabia is about to be awarded to Doosan.
- INFRABUYERS
Japanese trading house Itochu has taken another step into the water market with the £43.5 million purchase of a 20% interest in Bristol Water, a regulated British water company.
- DESAL SELLERS
Asset sales are still on the agenda in Spain. The debts of the “big six” construction firms (Acciona, ACS, FCC, Ferrovial, Sacyr and OHL) amounted to €41.7 billion at the end of 2011 – 2.6 times their current combined market capitalisation.
- REFORMERS
At the Global Water Summit in Rome last month, Mihir Shah of India’s Planning Commission outlined proposals for significant reforms of the Indian water sector.
Analysis
- Sweating the small stuff
Christopher Gasson sees a trend towards fragmentation in the water market.
- CHART OF THE MONTH - Where do Global Water Summit delegates think money should go in water?
This month’s chart comes from the final session of the Global Water Summit. Delegates were asked two questions.
- David Lloyd Owen - O brave new world – where gene sequencing might hit the spot.
At the GWI Global Water Summit in Rome last month, Dr Craig Venter threw his dinner audience into a brave new world of peer-reviewed papers.
- Industrial-sized opportunity
Emma Welsh looks at desal and reuse opportunities in industrial markets.
General
- Getting to the point of no return
Bulgaria’s plans to roll out a series of water and wastewater PPPs are gaining serious traction. The extent of private sector investment that will be required remains unclear.
- Breaking the deadlock in Bulgarian water PPPs
Bulgaria’s battle to get a second water PPP off the ground has been dogged with setbacks. What are the prospects for success this time around?
- Looking for the Lusophone connection
Portugal is looking to translate its domestic water expertise into international project wins. It has picked some surprising target markets.
- Adopting an Efacec-ious approach
Efacec Ambiente is a vocal advocate of the Portuguese government’s push into international markets. What is its strategy?
- Abengoa Water prioritises tech investment
Last year, Abengoa Water was created out of the concessions and technology interests of Befesa Water. CEO Carlos Cosín outlines the bold moves that the new company has been making to guarantee its competitive advantage.
- Risks remain in Veolia UK water sale
The race to acquire Veolia Water’s regulated UK assets is likely to result in only a couple of serious bids. What is holding the market back?
- Closed-circuit desalination comes of age
A fresh injection of growth capital will enable the RO revolutionaries at Desalitech to deploy their proprietary technology on an entirely new scale. They want to build a $100 million-a-year company by 2016.
- Gaza holding out for desal funding
The Palestinian Water Authority is having some success procuring small desal and reuse projects in Gaza. Avoiding a water crisis will still rely on the success of a large-scale desalination project.
- Mekorot aims for 90% wastewater reuse
Joining up Israel’s network of wastewater projects could further improve the country’s record on wastewater reuse. Sustainable water pricing is the backbone of the scheme.
- Israel counts the cost of open competition
The relative dominance of a single company in the Israeli desalination market has been criticised in a new report. The government will have to tread carefully if it wants to ensure future tenders are truly competitive.
- Hidd sale peps up IP’s bidding power
The sale of a 40% stake in the Bahraini IWPP marks a major expansion in the region for Malakoff. For market leader International Power, it is part of a rationalisation process that will free it up to bid on future contracts.
- Murky politics belie a bright performance
China Everbright International is putting its links with Bo Xilai behind it. CFO Raymond Wong shines a light on the company’s strategy.
- Infrastructure boom nears in Karachi
Pakistan’s largest city is on the cusp of a massive infrastructure boom. Plans for wastewater reuse will have to wait.
- Manila Water buys into Ho Chi Minh City
The Philippines concessionaire has deepened its commitment to the Vietnamese water sector. It continues to be selective about which business opportunities to pursue.
- Sydney signs off on desal refinancing
The sale of Sydney’s desalination plant to a trio of infrastructure funds is unlikely to accelerate the wider adoption of private finance in the procurement of Australian water infrastructure.
- Putting the ‘international’ back into JBIC
JBIC’s water lending activities all but ground to a halt in 2010. Nagayoshi Motokawa tells GWI how the newly independent institution wants to extend its influence to developed countries.
- Red card for China’s water wasters
New reporting requirements on water use are likely to boost local government spending when they are introduced later this year. The national consumption reduction target still looks ambitious.
- India’s tectonic shift in water policy
India needs a completely new approach to managing its water resources. Planning Commission member Mihir Shah shares his blueprint for success.
- The new conquest of Rome
The Global Water Awards recognise what senior executives across the international water industry acknowledge as the most important achievements of 2011.
- Investment flows into membranes
A brace of headline deals this month indicates that interest in emerging desal technologies has never been higher. What is driving the trend?
- Grundfos gets smarter
The Danish pumps company opened a new facility near Chicago last month. Pumps are increasingly an afterthought in this IT-led business, however
Brief
- EUROPE WATER IN BRIEF
Capstone Infrastructure Corporation had offloaded 20% of Bristol Water to Itochu just six months after buying a 70% stake in the company from Suez Environnement.
- MIDDLE EAST WATER IN BRIEF
The construction wing of Iran’s Revolutionary Guard has been awarded a contract by the Ministry of Energy to construct a 100 million m3/yr (274,000m3/d) RO desalination plant on the shore of the Caspian Sea.
- ASIA WATER IN BRIEF
South-east Asian club ASEAN has set up an infrastructure fund which began operations this month.
- AMERICAS IN BRIEF
American Water has responded to investor concerns about its dwindling dividend yield by boosting its quarterly cash dividend payment from $0.23 to $0.25 per share, an increase of 8.7%.
Opinion
- Downsizing water demand
Water authorities are keen to make demand management sexy. Does this mean plant suppliers are facing a market slow-down?
- Through the Korean keyhole
Charles Bodhi chews on the seeds of change in Seoul.
GWI Water Index
- GWI Americas Index rises to all-time high
A robust performance from Brazilian water stocks and US investor-owned utilities helped the GWI Water Index to outperform most of the major stock benchmarks this month. Séché Environnement, meanwhile, had a torrid time.
Market Profile
- A market with grounds for optimism
After a period of stagnation, the market for groundwater treatment technologies has a lot of catching up to do. Increasingly stringent regulations and demographic change will drive demand, argues Gord Cope.
