Vol 2, Issue 4 (April 2001)

Analysis

  • A word from the Editor

    Water industry news is mixed this month and certainly not all good for private sector operators and banks.

General

  • Beijing No. 10 down to three

    THE FINAL DECISION on which consortium will be awarded the Beijing No. 10 water treatment plant BOT appears closer following the conclusion of the first round of bidding.

  • Difficult times in Portugal

    Twelve concession contracts let to international private water companies between 1995 and 1998 looked like the prelude to a period of considerable opportunity in the Portuguese water sector. Backed by a law change in 1993 and another in 1998, ostensibly to ease the path to privatisation, it appeared that the years ahead would see the pace of PSP increase with new offers to those who could provide expertise in the operation and management of water and wastewater systems.

  • Exim Bank joins Thu Duc financing

    THE EXPORT- IMPORT BANK (EXIM BANK) of Malaysia has confirmed its participation in the $135 million Thu Duc BOT water supply project in Vietnam.

  • Glas kicks off £2 billion structured bond issue

    Glas Cymru, the company formed in April 2000 for the sole purpose of acquiring Welsh Water, has launched a one-month roadshow to market around £2 billion of asset-backed bonds of which £1 billion will be guaranteed by MBIA Assurance, the US monoline insurance company. Schroder Salomon Smith Barney and Royal Bank of Scotland are the co-arrangers of the programme.

  • Israel facing more water shortages

    Israel ’s ongoing water deficit stood at 390Mm<sup>3</sup>, according to official estimates released last month. The plan to purchase water from Turkey, which was set in motion during the former Ehud Barak’s government, has assumed greater significance and a deal could be struck by the end of this month.

  • Mekorot restructure approved

    THE ISRAELI GOVERNMENT has reached an agreement with Mekorot which will allow the company to restructure and enter joint ventures with private partners (see GWI, Vol. 1, Issue 1, p.1).

  • Sabesp, Sanepar show dramatic rise in profits

    São Paulo state water company Sabesp, Latin America’s largest water and sewerage company, boosted its profit and debt performance last year. Year 2000 financial results are likely to bolster investor interest in the purchase of the state’s 88% stake. No date has been given for the sale but some analysts believe it could take place later this year following approval of a bill that would overhaul Brazil’s water and sanitation sector (see GWI, Vol. 2, Issue 3, p.4).

  • South Korean double for Vivendi

    VIVENDI WATER has been selected by the South Korean town of Inchon (population 2.4 million) and the county of Chilgok to build and operate two wastewater treatment plants.

  • Spain: an alternative PHN

    MORE EFFICIENT WATER CONSERVATION, extensive reuse of greywater and a wider use of desalination should be the immediate answers to Spain’s water problems, according to an alternative water plan presented by shadow environment minister Cristina Narbona.

  • West Manila: forex losses take their toll

    The Asian Development Bank (ADB) has said that it is not inclined to look at a loan restructuring package to help ease the burden of Maynilad Water Services’ debt payments. Maynilad’s problems stem from an $800 million debt inherited from the state-owned Metropolitan Waterworks and Sewerage System (MWSS).

Brief

  • Aguas Guariroba plans $15 million investment

    CAMPO GRANDE city water company Aguas Guariroba, operated by Aguas de Barcelona (Agbar), is to invest R$32 million (US$15 million) in the next two years. Aguas Guariroba paid R$65 million (US$30 million) to take on the 30-year concession for the state capital of Mato Grosso do Sul in southern Brazil last October.

  • Copasa to spend over R$200 million in 2001

    MINAS GERAIS state water company Companhia de Saneamento de Minas Gerais (Copasa) is to invest R$204 million (US$95 million) this year in infrastructure, 8.5% more than in 2000. Two-thirds of the investment, R$135.5 million (US$62.5 million), will come from the company’s own funds.

  • MVV Energie lands Turkish project

    LISTED GERMAN MUNICIPAL UTILITY MVV Energie has landed a two-year contract from Turkish water utility Aski to identify leaks in the water system of the city of Adana.

Companies

  • New brand for Suez Lyonnaise des Eaux

    SUEZ LYONNAISE DES EAUX (SLdE) announced last month that it is dropping the ‘Lyonnaise des Eaux’ from its name to reflect a new era for the company in a broader range of businesses.

Market insight

  • Concession contract management

    Concession businesses can appear to investors as highly complex, politicised and potentially risky investments. This article, written by Nigel Hendley, principal of Hendley Associates, seeks to explore the key issues of cultural change and revenue management and in so doing, provide an insight into the art of concession management.

Performer of the month

  • World water industry slow-down

    A slumping global economy unsettled international markets for much of March. Most major market indices plunged around the middle of the month, but saw a slight recovery in the final days of trading.