Vol 3, Issue 12 (December 2002)
Need to know
- COMPANY RESULTS
Brazil: São Paulo’s Sabesp announced a third quarter loss of R$663.6 million (c. US$180 million) – a consequence of stable tariffs and Brazil’s slumping currency.
UK: AWG confirmed that its international water business was up for sale.
UK: The proposed acquisition of Southern Water by Vivendi Environnement was blocked (see story, p.15).
Estonia: An €80 million loan to AS Tallinna Vesi, the water company co-owned by IWL, was finalised.
- PEOPLE/LEGAL& INSTITUTIONAL
UK: Thames Water announced that Bill Alexander would become chairman of the government’s Water Sector Advisory Group (WSAG) for a two-year period.
UK: HSBC published its first ever joint equity and fixed income sector report.
- LETTERS TO THE EDITOR - New Orleans is just a blip
Sir – I enjoy your periodical, but I have to take issue with your characterisation of the recent New Orleans Sewer & Water Board vote to reject all bids as a “stark message” regarding privatisation in the US (see GWI, Vol. 3, Issue 11, p.28).
- LETTERS TO THE EDITOR - Ofwat has considered the risks
Sir – The leader article entitled “The Genius of Leverage” (see GWI, Vol 3, Issue 11, p.5) raises the issue of how Ofwat could avoid liability should a highly leveraged water company become insolvent as a result of a regulatory decision which would not have so affected a company with a more broad equity base.
- Out of the lobster pot
Our analysis of the 20 deals completed over the past year (see pp.9-11) makes for interesting reading – mainly because some of the deals which were expected are not there. Just four deals are from the Americas, although none of these were from South America and there was at least one sorely missed North American deal: New Orleans.
- Which side of the napkin?
The slowing of the rate of expansion of the international private water sector is primarily due to the demand side, but the supply side has also faltered.
- Beijing co-operates with Brandenburg on water supply
A Sino-German project is aiming to rehabilitate one of the Chinese capital’s reservoirs. More collaborative ventures could follow.
- Italian municipalities singled out
Most of Italy’s local authorities have ignored the proper tender processes when awarding concessions for ATOs.
- Kenya’s water bill becomes law
Although it doesn’t tackle the issue of public-private partnerships.
- Mitsubishi in Japanese O&M deal
Is Japan overcoming its habitual resistance to private sector participation?
- Plan first, spend later
A report by Italy’s national court of auditors has revealed how EU funds for water were used – and misused – between 1994 and 1999.
- Setting up the ATOs – a progress report
This has been a somewhat hit and miss affair although the situation is improving.
- Uganda’s NWSC on track for privatisation
A transaction could be ready within two years following the state company’s efforts to improve efficiency.
- Who gained what in 2002
A review of the private sector’s hits and misses this year.
- Rand Water profits boost
Costs have dropped and tariffs are up.
- Southern Water news
Thwarted. For the moment.
- VE share placement done
Electricité de France (EDF) has emerged as a possible suitor for VE but there are legal issues.
Performer of the month
- AWG: where’s the growth?
The market has undervalued AWG but has the company done enough to change the doubters’ minds?