Vol 4, Issue 1 (January 2003)

Need to know

• COMPANY RESULTS

  Spain: The board of Aguas de Valencia filed a report to the stock exchange regulatory body (the CNMV) revising the profit figure for the third quarter.

• CORPORATE

  France: Suez announced an action plan for 2003-04 to help improve performance.

• DEALS

  Italy: The Ombrone ATO sold 40% of the share capital of its public utility company (Acquedotto del Fiora) to a joint venture of Ondeo and Acea.

• INVESTMENT

  Romania: EBRD and Germany’s DEG announced a €74 million loan to Apa Nova Bucuresti, the concessionaire owned by Vivendi Environnement and the city of Bucharest.

• PEOPLE/TECHNOLOGY

  Australia: Suez appointed Russell Cooper as head of its local services division.

• REGULATORY

  UK: Ofwat said it would allow both Severn Trent and Yorkshire Water to increase customer charges for the period April 2003 to March 2005.

Analysis

• Letter to the Editor

  from: Chris Mellor Chief Executive, AWG

• Performer of 2003

  Water ought to be a defensive investment: people don’t stop going to the bathroom just because there is a recession on.

General

• Brazil finalises new government

  The water sector should benefit from Lula’s ministerial appointments.

• Bucharest update

  Vivendi has finalised a loan to improve the Crivina WTP.

• China launches Yangtze diversion scheme

  But will need to find $59 billion to build it.

• Constanta attracts six

  A first consultative meeting with private sector operators drew strong interest last month.

• Gelsenwasser sale fades

  The sale of Gelsenwasser looks unlikely for a while yet.

• Gera chooses Vivendi as well

  VE claimed a municipal outsourcing contract in Thuringia in December.

• Johor to stop buying treated water from Singapore

  Thanks to a new treatment plant which will be finished this year.

• Kentucky confirms approval of AWW sale

  The state regulator approved the deal with RWE in December. Again.

• MVV wins contract for Tajikistan World Bank project

  The German utility is to renovate four treatment plants and cut leaks in the central Asian republic.

• North American project survey

  Puerto Rico stood out last year but the market was driven by smaller and medium-sized deals.

• Romania’s experience with PPPs

  Attention has turned to the country’s secondary cities following closure of the Bucharest concession.

• Saudi Arabia seeks advisers for IWPP programme

  Bids for the consultancy contracts went in last month.

• State control for Cape Town

  Expect a limited role for the private sector.

• Taweelah IWP goes to the wire

  It looks like being a close run thing in Abu Dhabi.

• The end for Casan?

  The Santa Catarina state water company could be broken up.

• Vivendi takes majority in Stadtwerke Weisswasser

  In a deal worth €30 million.

Companies

• RWE plays down expected profit plunge

  But owns up to some hefty goodwill charges.

Performer of the month

• A look back at 2002

  Despite some steady performances, 2002 was generally a disappointing year for the water industry.