Vol 4, Issue 4 (April 2003)

Need to know

• COMPANY RESULTS

  Brazil: São Paulo state’s Sabesp reported a loss of R$651 million (US$200 million) in 2002, reversing a R$216 million (US$66 million) profit in 2001.

• CORPORATE

  UK: Six groups were shortlisted to buy Northumbrian Water.

• DEALS

  Egypt: Severn Trent Metering Services was awarded a $750,000 contract for the supply and installation of an automatic water metering system (see story, p.17).

• INVESTMENT

  United States: USAID announced an $8 million, one-year grant to the United Nations Children’s Fund (Unicef) to provide basic health, water supply and sanitation services in Iraq.

• PEOPLE

  Germany: Richard Klein and Manfred Remmel both left RWE by “mutual consent”.

• POLICY

  Italy: Opponents of water privatisation scored a victory in Lombardy when their request to hold a referendum repealing a regional law on water sector reform – as set out in Galli Law – was upheld by the constitutional court.

• REPORTS/PUBLICATIONS

  Japan: The report of the world panel on financing water infrastructure chaired by former IMF managing director Michel Camdessus was launched at the Kyoto World Water Forum.

Analysis

• Iraq: the weasels with the water

  A stark choice.

• Kyoto: hot air and cold water

  Was it worth the effort?

• RWE: where next?

  Are sell-offs on the cards?

General

• Bahrain plans water sector liberalisation

  The government is looking at privatising the water and electricity sectors.

• Darco wins maintenance contract

  A 30-month deal with Taiwan’s Taipei city government.

• Emerging markets: pleased to meter?

  Politically acceptable revenue collection is key to expanding the emerging water sector. GWI looks at the successes - and shortcomings - of pre-payment metering.

• Germany puts wastewater privatisation on hold

  But foreign players need not be put off.

• Hyflux to sign water purchase agreement

  The company has also expressed interest in a fourth NEWater project at Ulu Pandan.

• New timetable for Peru regional concession

  Proinversion updates its plan.

• Reducing unaccounted-for-water

  A leak reduction programme has helped reduce water losses in the Gulf state.

• Severn claims Egyptian metering contract

  Severn Trent Metering Services announced a water metering contract in Egypt last month with an initial value of $0.75 million.

• Vivendi can keep dividend for 2002

  Sanepar registered a R$144.5 million (US$44 million) net profit for 2002, slightly down on the previous year’s R$152.1 million (US$46.3 million).

• Vivendi keeps Sanepar operations post

  Pierre-Yves Mourgue will remain in Parana on behalf of Vivendi Environnement.

Companies

• Roels takes over

  RWE’s new chief executive made a good impression at his first analysts’ conference last month.

• RWE: positive news but is there a gathering storm?

  Last year’s results from the water division look good but the figures for 2003 may be quite different.

• Six in the running for Northumbrian

  Bids for the company were submitted in early April.

• Tozzi’s last stand?

  The former Swan Group man restated the case for mergers last month.

• Unifying the Thames brand

  Before its acquisition by RWE, Thames Water had already drafted a plan to divide Thames Water International into three separate regions; Thames Water Utilities in the UK was to be the fourth.

• WestLB to make new AWG approach

  The bank has pulled out of Mid Kent Water to facilitate a formal offer, possibly later this month.

Performer of the month

• Water tech companies: a safe haven?

  Water tech stocks have performed steadily in recent months and offer an alternative to traditional utility shares.