Vol 2, Issue 12 (December 2001)
Analysis
- A word from the Editor…
Our main focus this month is Africa, a region where water privatisation has met with mixed success. Saur International has a BOT lease contract in Mozambique, Ondeo operates a management contract in Johannesburg, and both Ondeo and Vivendi have made progress in West Africa.
- Masons Water Yearbook
THE INTERNATIONAL LAW FIRM MASONS has published a revised edition of its Water Yearbook. Written by David Owen, director of research at Delphi International, the third edition of the book provides details of the water sector in 100 countries, with 66 covered in detail (up from 61 in the 2000-2001 edition).
General
- Africa: two steps forward and one step back
The process of state withdrawal from the water sector in Africa is moving very slowly, despite World Bank and IMF insistence that water sector loans and aid should be linked to private sector participation. Most progress has been made in the Sahelian countries of West Africa, where the French utility giants have made some notable gains. However, in the larger economies of the African continent, and in the countries where most investment could be made, the politics of water is hindering further progress.
- EBRD loan to improve sewerage services in Silesia
EBRD IS TO LEND €16.7 MILLION to a local authority in southern Poland to help reduce pollution and improve sewage collection.
- Embasa privatisation abandoned
The Brazilian state of Bahia has called off the attempt to sell its water and sanitation company, Empresa Baiana de Águas e Saneamento Basico (Embasa). Senator Antônio Carlos Magalhães, former minister, Bahia state governor and ex-president of Brazil’s senate announced the decision last month.
- Gelsenwasser to run water services in Kosovo
GERMANY’S LARGEST PRIVATE WATER COMPANY, Gelsenwasser, is to provide water services to the 200,000 inhabitants of Gjakova in Kosovo, working closely with the United Nations interim administration mission in Kosovo (UNMIK). Gelsenwasser will start running the town’s water utility in January 2002 for a preliminary period of two years.
- Ghana’s steady progress
Private sector participation in the Ghanaian water industry has been on the agenda for a number of years. In this interview, Samuel Lamptey, general manager (operations) of the Ghana Water Company (GWC) and Abigail Kwashi from the Ministry of Works and Housing, tell Peter Allison how the PSP process is progressing and discuss some of the problems they have come up against. Mr Lamptey also describes GWC’s financial situation and key performance indicators.
- IFC takes stake in Brazilian concession holder
THE INTERNATIONAL FINANCE CORPORATION (IFC), the World Bank’s equities arm, took a $30 million, 16% stake in AG Concessoes last month in order to capitalise the company.
- Jordanians change dam design
JORDAN’S MINISTRY OF WATER AND IRRIGATION is to change the technical specification of the $220 million Wihdeh dam project in order to attain a better design. The dam is to be built on the Yarmouk river on the border with Syria.
- Setback in Israeli/Turkish water deal
ISRAEL WILL HAVE TO BUILD A NEW DESALINATION PLANT with a capacity of 50Mm<sup>3</sup>/year if the government fails to follow through plans to import water from Turkey, according to Minister of National Infrastructures, Avigdor Lieberman.
- Thames Water boosts RWE 1Q profits
RWE HAS ANNOUNCED THAT THAMES WATER contributed a substantial share to the 37.9% growth in group operating profits to €903 million for the first quarter of 2001 (1 July to 30 September).
- Thames Water strengthens Chilean presence
THAMES WATER, THE RWE GROUP’S WATER DIVISION, has acquired a 30-year concession from the Chilean government to provide water services for the country’s fourth largest water and wastewater company, Empresa de Servicios Sanitarios del Maule (Essam). Essam supplies around 570,000 people in the Maule region (7th region of Chile) and achieved net sales of $21.4 million in 2000.
- The politics of PSP
The proposed restructuring of Ghana Water Company (GWC), initiated by the former National Democratic Congress (NDC), seemed promising when the New Patriotic Party (NPP) committed itself fully to implementing it, shortly after taking power in December 2000. The NDC set up the Water Sector Restructuring Secretariat (WSRS) in April 1997 as a special unit under the Ministry of Works and Housing to ensure the smooth progress of the project.
- ThyssenKrupp to shed stake in Eurawasser
GERMAN STEEL GIANT THYSSENKRUPP is being tipped to sell its 50% stake in the Berlin water company, Eurawasser.
- Vivendi moves into Italian industrial market
VIVENDI WATER has acquired the Italian company, Depurazioni Industriali (DI), a Montedison group subsidiary.
- Water Partnership Council launched
A NEW ORGANISATION, comprised of companies including US Filter, United Water and Thames Water North America, was launched last month to focus on US water quality and safety issues as well as infrastructure improvements.
Market insight
- Providing water services to the rural poor
Thuso Ramaema, chairman of Amanz’abantu, non-executive director of Metsico and executive director of Water & Sanitation Services South Africa (WSSA), with Oliver Ive, managing director of Amanz’abantu and CEO of Metsico, review the South African BoTT programme.
Performer of the month
- UK market unimpressed with interims
Interim results for the UK water industry arrived in November showing a mixed performance. Several companies, including United Utilities, AWG and Severn Trent posted significant turnover growth for the period. However, lacklustre pre-tax profit numbers dampened market enthusiasm.
