Vol 5, Issue 10 (October 2004)

Need to know

• CHINESE AFFAIRS

  As the pace of investment in the Chinese water sector increases, GWI is publishing a report on the sector (see advertisement on inside front cover). The Market Profile feature starting on p21 distills some of the information from the 300-page report – including a listing of 43 upcoming deals.

• COMPANY NEWS

  RWE/Thames had two pieces of good news in the US. The group’s subsidiaries American Water and Pridesa have been selected as preferred bidder for the Tampa Bay fix project.

• LATIN DISPUTES

  Chile’s consumers’ association Odecu is seeking to revoke a water concession awarded to Spain’s Iberdrola, accusing the European company of poor management of the Essal water firm in southern Chile.

• MIDDLE EAST DEALS

  The Beirut operation of EBD Group was awarded a $100 million contract by Sudan’s Ministry of Planning & Development to build three wastewater treatment plants and expand the existing sewerage network to serve the growing needs of the capital Khartoum. EBD will form a project company with the Sudanese government, with EBD taking a 60% share.

• SHOW TIME

  It has been a crazy month for water-related conferences.

Analysis

• A Saur sign of spring

  Will a buyer reverse the trend in the market?

• China conundrum

  Is the buoyancy of the Chinese market an opportunity or a threat?

• Insight - David Lloyd Owen

  Industrial water outsourcing acquires a global polish.

General

• Europe is the main show, says F&S

  Data presented by Frost & Sullivan at the Ultrapure Water Europe event in Amsterdam last month indicates a buoyant market.

• Israel breaks the log-jam

  The Hadera proposal and Mekorot’s Ashdod plant are moving ahead at last.

• Kahramaa awards IWPP

  The IP/OEWC team has bagged the $900 million Qatari deal.

• Marubeni in pole position for Taweelah B

  The Japanese group has ADWEA’s backing.

• Omanis progress with private projects

  A new IWPP is planned for Barka and an IWP is set to go ahead in the Sharqiyah region.

• Peru opens Tumbes process

  Peru is looking to the private sector to reverse the decline in investment.

• Positioning for Polish deals

  With EU funding flooding in, private Suez is well placed to clean up.

• Power and water sector restructuring

  Oman’s privatisation law allows for the sale of government assets, including the Ghubrah power and water station.

• Private equity funds see Saur opportunity

  The French water firm will have a new master with no current interests in the water sector. What will they make of it?

• Spain switches to user pays

  The environment minister says water tariffs must rise. Farmers are unhappy.

• Tozzi looks to fill Augean stable

  With a wave of merger opportunities expected in the wake of Ofwat’s price review, former Mid Kent Water chairman Keith Tozzi hopes to clean up.

• Ukraine’s challenge of reform

  Sergei Sivaev looks at the legacy that prevents reform of Ukraine’s water sector.

• US water reuse gathers momentum

  Desalination makes the headlines but water reuse is probably growing faster – particularly in the US.

Companies

• A Moroccan love affair

  Suez’s concession in Casablanca could be the beginning of a beautiful friendship.

• American targets wastewater

  Thames’ US subsidiary has just won a big wastewater contract in Sioux City. It hopes more will follow.

• Cascal turns cash cow for Biwater

  The joint venture with Nuon put a shine on the contractor’s otherwise disappointing performance.

• Lenders look for municipal solution

  Municipalities in emerging markets need more money to invest in water and sewerage. A conference in Washington discussed how to get it to them.

• Suez’s pragmatic evolution

  How has Suez Environnement’s outlook changed since the new boss took charge? GWI asked Jean-Louis Chaussade at the International Water Association conference in Marrakech.

• Thames' ownership vision

  In an exclusive interview, Thames Water's chief executive Bill Alexander explains how asset ownership defines RWE's strategy in the water sector.

• The survivor in a squeeze

  Thames’ chief executive Bill Alexander has been in the job a long time. The latest reorganisation puts him under pressure.

Market insight

• Playing by the rules

  As GWI’s new report on the Chinese water and wastewater markets is published, its authors, Olivia Jensen & Frédéric Blanc-Brude, outline the potential and the challenges of the biggest market in the world. There are real opportunities but it is a difficult game to play.