Vol 5, Issue 1 (January 2004)

Need to know

DEALS
Veolia took the biggest water deal of the year just before Christmas when it was awarded a 50-year contract for outsourcing water services in the city of Shenzhen worth €8.5 billion.
DESALINATION
Kahrama, the project firm backed by Black & Veatch and AEC, was given another chance to close the financing of the 314MW and 86,000m<sup>3</sup>/d power and desalination plant in the Arzew industrial zone in Algeria.
DISPUTES
Suez is facing the cancellation of its billion contract to run Puerto Rico’s water.

Analysis

Beating the index in 2004
Water underperformed yet again in 2003. But not for much longer.
Equity for debt
The multinationals have shown their mettle.
Insight - David Lloyd Owen
In his debut column for GWI, international water consultant David Lloyd Owen argues that it will take more than just BOT schemes to solve Northern Ireland’s water problems.
No apple pie?
The contract operations market in the US has collapsed. It will be back.

General

ADB invests $47 million in Fiji
With 55% of its water unaccounted for, Suva-Nausori needs the investment.
AEC opens bids for SWRO plants
Public opening of the technical offers took place at the Algiers Hilton in December. It produced a few surprises.
Brazil's PPP bill moves up agenda
Lula has also promised to set up a trust fund to protect investors.
Contract ops sector collapses
The US contract operations market was down by nearly three quarters last year. But, as Larry Chertoff reports, not everyone was unhappy.
Desalination back on the agenda in Spain
The national government is still backing transfer as the solution to its water deficit. A new government in Catalonia may force a rethink.
EBRD breaks into equity
Multilateral lenders are having to innovate to attract interest in emerging markets. The EBRD has taken an audacious step.
Gelsenwasser wins Dresden and Emmerich wastewater deals
Dortmund and Bochum municipalities have seen their acquisition steal a march on Veolia in eastern Germany.
Kahrama gets a lifeline
Kahrama has been trying to close Algeria’s first non-recourse power and water deal for 18 months. It still hasn’t but there is light at the end of tunnel.
Ofwat still set against mergers?
Ofwat seems unimpressed by the economies of scale in the water sector as it prepares to publish research into the issue.
Ranhill eyes Sabah privatisation
The Malaysian utilities group has pledged to invest $300 million if it is given a 40-year concession.
Shoaiba prequalifies eleven
Despite their initial lack of enthusiasm, several international developers are poised to contest Saudi Arabia’s showpiece IWPP.
Taweelah makes tracks
A preferred bidder has been officially announced. The project can now move forward.
Watergrid signs first customers
For the first time, UK water companies are facing competition in their backyard. It is a start.

Companies

Europe takes centre stage in Suez revival
In an exclusive interview with GWI, Jacques Pétry, chairman and chief executive of Suez Environnement, explains how he sees the future of the largest water company in the world.
The deals that went wrong at Suez
See also: <b>Europe takes centre stage in Suez revival</b>
Water vs electricity at Suez
Independent financial analyst Nigel Hawkins looks at where water fits in to Suez’s overall strategy.