Vol 2, Issue 8 (August 2001)
Analysis
- A word from the Editor…
This month’s GWI features an interview with Thames Water’s CEO Bill Alexander. Bill joined Thames in 1989, the year of water privatisation in the UK, and has overseen such large capital projects as the London water ring main.
General
- EBRD loans for Belgrade and Kaunas
One-third of a €60 million loan from the EBRD to the municipality of Belgrade is to go to the city’s water company to fund the completion of a new water treatment plant.
- Eleven desal plants for Libya
LIBYA plans to commission eleven desalination plants with a combined capacity of 700,000m<sup>3</sup>/d in the coming decade, according to Omran Ibrahim Abukraa of the Secretary of the People’s Committee running the General Electricity Company of Libya (Gecol).
- Embasa sale set for November
The Bahia state water company, Embasa, is to be sold at auction in November. The sale date is one month later than previously announced but looks more likely to go ahead on the new schedule. A prospectus will be published in September.
- German funds for Polish STP
THE GERMAN ENVIRONMENT MINISTRY has announced that it will provide support of €3.84 million for construction of a new sewage treatment plant in the Polish town of Szprotawa.
- Hoboken contract extension
UNITED WATER’S contract with the city of Hoboken, New Jersey for the operation and maintenance of its water system has been extended for a further ten years.
- Industrial outsourcing win for Vivendi
Vivendi Water subsidiary, US Filter Operating Services has signed industrial outsourcing agreements for water and wastewater treatment with the Westlake Chemical Corporation, part of the Houston-based Westlake Group.
- Italian job for Vivendi
VIVENDI WATER has booked a municipal outsourcing contract in Italy as leader of a consortium which includes Enel Hydro and Acquedotto Pugliese (AQP). The consortium will supply drinking water and treat wastewater in the Latina region.
- Knesset approves Hadera desal plant
THE KNESSET MINISTERIAL ECONOMIC COMMITTEE has sanctioned construction of another desalination plant in Israel to reach the government’s target of 200Mm<sup>3</sup> total annual production.
- Mexico: Hermosillo desalination plant
ISRAELI IDE TECHNOLOGIES is to build a seawater desalination plant in the Mexican state of Sonora as part of a consortium which includes Spain’s Union Fenosa and Actividades de Construccion y Servicios (ACS). The plant will be built on a BOT basis, with $250 million invested to carry out the project.
- Ofwat approval for Glas
GLAS CYMRU has met the regulator’s six conditions required for ownership of Dwr Cymru, according to Philip Fletcher, director general of water services.
- Omani prospects
Oman’s Ministry of Environment, Water Resources and Regional Municipalities is set to appoint a consultant this month to study privatisation options for the Al Massarat and Al Sharqiyah Sands groundwater supply projects. Two groups are believed to be in the running: KPMG and the UK’s WS Atkins, and Ernst & Young with Mott MacDonald also of the UK.
- Sabesp to sell 20% of ordinary shares
LATIN AMERICA’S largest state water and sewerage company, Brazil’s Sabesp, is to sell off around 20% of its ordinary shares, according to Sao Paulo state planning secretary Andre Franco Montoro Filho.
- Saudis announce new water ministry
Saudi Arabia is to set up a separate ministry to manage its water resources and to facilitate private investment in the sector. The new Ministry of Water Affairs will be split from the current Ministry of Agriculture and Water.
- Sepetiba bay clean up
THE CLEAN UP SCHEME for Rio de Janeiro state’s Sepetiba bay has officially begun.
- Tampa’s changing fortune
With a large harbour opening out onto the Gulf of Mexico, several rivers and a water table only 3.5m below ground, Tampa, Florida would not seem to be short of water. However, a prolonged drought and significant population growth over the past several years have made the shortage of potable water an acute issue for the city.
- Vivendi quiet on Centrica link-up
Vivendi Environnement (VE) has declined to comment on market speculation that it has linked up with the UK’s Centrica to consider a bid for Southern Water. Southern was put on the market earlier this year.
- Windhoek contract for European consortium
BERLINWASSER INTERNATIONAL, VIVENDI WATER and the Austrian water company, VA Tech Wabag have signed a 20-year contract with the city of Windhoek in Namibia to modernise, maintain and operate the Gorengab water reclamation plant. The consortium won the contract after an international call for tenders.
Companies
- The evolution of Thames Water
In November 2000, Thames Water became a division of RWE. The company now manages all core water operations within the RWE group, including RWE Aqua, which has operations in Germany and eastern Europe. RWE started life as a local municipal electricity company, evolving over the past 100 years to become an international multi-utility group. In this interview, Thames Water’s chief executive Bill Alexander tells Peter Allison how the two companies have been integrated and discusses the group’s growth and development aspirations.
Market insight
- Tax exempt debt financing
This article – the second of two written for GWI by the law firm, Cadwalader Wickersham & Taft – discusses the general rules relating to private activity bonds used to finance the construction, purchase or rehabilitation of water facilities in the US. By Robert Vitale, David Feeney and Ross Peters.
Performer of the month
- Weak second quarter for US water industry
Second quarter earnings reports hit Wall Street in July and, so far, the US water industry is showing symptoms of the global economic slow down. Revenues are up slightly, but net incomes are down due to rising costs.
