Vol 3, Issue 6 (June 2002)

Analysis

  • A word from the Editor

    Welcome to the June issue of Global Water Intelligence. The last few months have been something of a mixed bag for international private water companies. A number of important transactions have come to market, several projects are nearing close, and contracts for big-ticket deals such as Puerto Rico and Pudong have been signed.

General

  • Brazil: fantasy or reality

    The Austrian intellectual, Stefan Zweig, coined the phrase “Brazil: land of the future” in 1941, as he marvelled at the under-exploited resources of the vast tropical wonderland. Cynical Brazilians have subsequently expanded the phrase to “Brazil: land of the future…and it always will be”.

  • Cadiz seeks approval for Mojave storage project

    Final approval of Cadiz’s water storage project in California’s Mojave desert is expected in the next few months.

  • Canadian wastewater contract for Ondeo

    ONDEO HAS REACHED AN AGREEMENT to design, build and operate three WwTPs and to design and build a sewage collection system to treat wastewater from the 380,000 residents of Halifax, Nova Scotia.

  • Challenging times ahead in Nigeria

    The tender process for the contract to run water services for the Lagos State Water Corporation (LSWC) is starting to trigger interest in the Nigerian water sector as a whole. A federal bill permitting widespread private involvement in the sector is completing its passage through the legislature and a series of other contracts may follow the Lagos concession. However, any foreign private companies interested in Nigeria will face a multitude of challenges as well as opportunities.

  • Chile goes off the boil

    The privatisation process started in Chile in 1998 has ground to an abrupt halt. The first five state water companies to be privatised were contested by, among others, Thames Water, AWG, Biwater, Ondeo, Vivendi, Aguas de Barcelona and Iberdrola. In 2001, the Chilean government changed tack and adopted the concession system.

  • Jail for former Lesotho Highlands chief

    MASUPHA SOLE, THE FORMER CHIEF EXECUTIVE OF THE LESOTHO HIGHLANDS DEVELOPMENT AUTHORITY, was sentenced earlier this month to 57 years in prison for accepting bribes from international corporations. Sole will have to serve 18 years of the total sentence as some of the sentences run concurrently.

  • Local authorities seek strategic partners

    TWO LOCAL AUTHORITIES in the German state of North Rhine- Westphalia are looking for strategic partners for their water and wastewater businesses.

  • Nepal to reinvite PQs for Kathmandu

    The Nepalese government is continuing with its preparations for the Kathmandu Valley management contract despite receiving prequalification proposals from only three groups. Final details are still under discussion but are likely to involve modifications to the original PQ criteria.

  • Perth weighs up private desal option

    Five groups have been shortlisted to build a 100,000m<sup>3</sup>/d seawater reverse osmosis desalination plant near Perth, Western Australia. If it receives approval from the Western Australian government – expected in the next six to eight weeks – the plant will be commissioned and enter commercial operation at the end of July 2004.

  • Peru plans regional concessions

    The Peruvian government is planning to launch a concession programme for water and sewerage services in the northern municipalities of Tumbes and Piura. Emfapa, the water service provider for Tumbes, and EPS Grau, the service company for Piura, are likely to be offered in a single package to a private operator.

  • Privatisation in Brazil

    Basic sanitation is one of the last major sectors to remain mostly in public hands following Brazil’s extensive 10-year programme to privatise its state assets (see main text).

  • Vivendi and Ondeo claim Chinese deals

    Vivendi Water has booked a major 50-year contract in China to manage drinking water distribution in the Pudong business quarter of Shanghai. Not to be outdone, the group’s main rival, Ondeo, has signed two new contracts in Qingdao and Shanghai for a total value of €460 million.

Companies

  • Aquamundo developing PPPs in China

    AQUAMUNDO SAYS IT IS CLOSE TO SIGNING two PPP deals for sewage treatment plants in China.

  • Berlinwasser rescued from bankruptcy

    Europe’s largest municipal water services group Berlinwasser Holding has been rescued from the brink of collapse after its two shareholders, the state of Berlin and a consortium of RWE and Vivendi, agreed to put up guarantees for the company totalling €158 million.

  • Vivendi rumours continue to circulate

    Rumours continued to circulate at the start of this month about the future of Vivendi Environnement (VE). In a somewhat surprising move, the Vivendi Universal board of directors gave chief executive Jean-Marie Messier permission to cut the company’s stake in the French water and environment group.

Performer of the month

  • UK market finishes flat

    Unable to maintain the momentum from April, the UK water industry finished May flat with the FTSE water index posting a less than 0.5% gain for the month.