Vol 2, Issue 7 (July 2001)
- A word from the Editor…
We have divided this issue of GWI into a number of regional sections to give the newsletter a slightly new look.
- Brazil water legislation update
THE CONGRESSIONAL BILL reforming Brazil’s basic sanitation sector (Draft law 4147) was not, as widely expected, presented for consideration in June.
- Doosan gets letter of intent for Fujairah
SOUTH KOREA’S DOOSAN HEAVY INDUSTRIES & CONSTRUCTION COMPANY, formerly Hanjung, has received a letter of intent for the desalination and power plant package of the Fujairah project in the United Arab Emirates, the UAE Offsets Group (UOG) announced last month.
- Germany steps up development aid for water
The German development bank, Kreditanstalt für Wiederaufbau (KfW) is playing an important role in improving the water sector in poorer countries around the world. It now makes more funds available to water and wastewater projects than the European Bank for Reconstruction and Development (EBRD).
- IBJ appointed lead arranger for Ras
AES Corporation has appointed the Industrial Bank of Japan (IBJ) as lead financial arranger for the Ras Laffan IWPP. The new power and water plant will be located at Ras Laffan Industrial City, 80km north of Doha.
- India: little enthusiasm for PSP
India’s politicians, the overseers of a market filled with potential for the world’s private sector water companies, are unwilling to grasp the nettle of tariff reform which blocks the path to reliable, regular water supplies for the country’s thirsty millions.
- Islamic finance for proposed Iran-Kuwait pipeline
Part of the pipeline project to transport fresh water from northern Iran to Kuwait is likely to be financed by tapping Islamic banking sources.
- Kelda disappoints too
KELDA’S FINANCIAL RESULTS for the year also reflected the effect of the Ofwat price determination which reduced profits in the company’s main operating subsidiary Yorkshire Water.
- Knesset to probe Israeli water crisis
ISRAEL’S KNESSET HOUSE COMMITTEE has unanimously decided to establish a parliamentary commission to investigate the reasons for the country’s severe water crisis.
- Plaid Cymru nervous on job losses
PLAID CYMRU – THE PARTY OF WALES – has expressed concern over the potential scale of job losses in the Welsh water industry following the takeover of Dwr Cymru by Glas Cymru and the subsequent outsourcing of services to United Utilities.
- Scandinavian outsourcing contract for Vivendi
VIVENDI WATER has won what is claimed to be the first ever contract for outsourcing water and wastewater services in Sweden.
- Southern Italy’s investment shortfall
The south of Italy is failing to upgrade its old and inadequate water infrastructure, despite having leakage rates of over 40% in some parts of the network and stop-go drinking water supply for as much as 70% of the population in some southern regions during the summer months, a report by Italian financial newspaper Sole 24 Ore has revealed.
- Sumperk to Ondeo, Brno to Degrémont
ONDEO is to manage water and wastewater services for the town and district of Sumperk, in north Moravia in the north east of the Czech Republic.
- Thames profit slide
WHILE THAMES WATER made a significant contribution to a 35% increase in RWE’s operating profits, profits before tax at the regulated utility business were down by nearly 29%.
- UK: a lacklustre results season
The privatised UK water companies reporting full year results over the past four weeks have all seen their profits hit by Ofwat price controls, which took effect from April 2000. The last periodic price review cut bills on average by 12.5% and left companies struggling to make their businesses more attractive to the capital and equity markets.
- UK: predicting the future
Restructuring options and the future shape of the UK water industry were the main talking points at this year’s excellent IEA water conference, held in London in June. A speaker panel which included several water company CEOs and industry advisors discussed how the sector could create value for its shareholders and go about securing the funding necessary to meet its massive CAPEX burden.
Performer of the month
- UK water shows slight improvement
The UK water industry showed some signs of improvement last month despite a lacklustre series of earnings reports. For the second month in a row, the FTSE water index outperformed wider market averages.