Vol 5, Issue 7 (July 2004)

Need to know

• DEALS

  Meanwhile, Veolia has been making progress in the Czech Republic and China.

• DESAL DREAMERS

  Desalination is also moving up the agenda in India.

• DESAL REALITY

  The first private desalination plant in Israel was inaugurated at Kibbutz Maagan Michael.

• HAPPY ENDINGS

  Degrémont is back in Halifax after last year’s bust up with the Canadian regional authority.

• INVESTMENT NEWS

  Brazil’s Ministry for Cities announced further public investment in basic sanitation totalling R$432 million (US$140 million) on 1 July.

• NEW ENTRANTS

  RWE/Thames’ exit from Asia nears completion with the agreement of the deal to sell its Da Chang water treatment plant back to the city of Shanghai and an agreement with Australia’s United Group to buy its assets in Australia, Singapore and Malaysia.

• TAKING A PUNT

  International Power has complained that the rumour, reported in the May issue of GWI, that it was to pair with Tractebel to bid for the Shoaiba IWPP is “categorically untrue”.

Analysis

• Brazil nut

  Taking a loan to buy equity doesn’t make sense. Unless you are the governor of Paraná state.

• Goodbye International Water

  The curtain has fallen on Bechtel and Edison’s joint venture to take water to the world. The world has moved on.

• How chic is that?

  Chile’s retailing dynasty has put its money into water.

General

• America’s $400 billion leaking problem

  America’s water and wastewater pipes are growing old expensively. How are the technology companies capitalising on this market?

• Balancing tariffs and investment

  Municipalities need to have more realistic investment targets.

• Battle lines drawn at FCC

  The likely sale of Veolia’s stake in the Spanish construction group is expected to provoke a battle for control.

• Berlinwasser pursues China strategy

  The company’s international division expects Chinese projects to help drive turnover and profitability over the medium term. GWI’s Germany correspondent Sara Knight reports.

• Bulgaria proposes clearer rules

  A clear-cut policy on regulation and sector structure is set to boost the Bulgarian water industry. Lenders, such as the EBRD, and project developers have welcomed the move.

• Hold-ups for Watergrid

  Plans to use the UK’s network of canals to introduce competition in the supply of water and sewerage services to large industrial customers have hit delays of up to six months.

• Insight - David Lloyd Owen

  ISPA & cohesion funding: all icing and no cake?

• Italy’s tariff troubles

  The Italian water sector is struggling to attract investors. An ambiguous approach to tariff setting isn’t helping.

• ITT lands Qatar wastewater contract

  ITT Industries of the US has been selected to design, supply and supervise the development of a sewage system at the Doha South WwTP in Qatar.

• IWL sells Scottish PFIs

  The sale, to a financial investor, leaves International Water with just one remaining project – in Ecuador.

• Macquarie plans SEW bond issue

  The Australian bank intends to launch two tranches of fixed-rate bonds to refinance SEW. A credit wrap from Ambac means the bonds will get a triple-A rating.

• Marafiq moves ahead with IWPP

  Marafiq appears to have stolen a march on the Saudi government by getting its IWPP out to the market first. The project is thought to have an excellent chance of success.

• Maynilad seeks a way forward

  Will anyone buy into Maynilad again? GWI’s Asia correspondent Frederic Blanc-Brude reports from Manila.

• Northern Irish PPPs tempt the market

  Yorkshire Water and Earth Tech have already teamed up. Other UK water companies are likely to feature in the bidding.

• Pooled funds seek breakthrough

  Leaders of the development finance sector are meeting in Washington to discuss how to get more money into municipal infrastructure.

• Price restructuring in Berlin after 15% hike

  Berlinwasser’s core business delivered a healthy profit in 2003 and is set to do so again this year.

• Sanepar troubles mount for Veolia

  The government of the Brazilian state of Paraná appears intent on driving its private partner out of water company Sanepar.

• Solari claims Chilean sanitation firms

  Essat, Essar and Esmag have been awarded to a group that controls Chile’s largest retailer.

• Spain set for desalination boom

  The government is planning over 20 new projects which will more than double existing capacity.

• SWCC rehab order for Sasakura

  Sasakura’s JV company, set up to target the rehabilitation and maintenance business in Saudi Arabia, is to upgrade SWCC’s Jeddah Phase 4 facility.

Companies

• China boost for Veolia

  Veolia did two China deals last month – in Urumqi and Zunyi. GWI Asia correspondent Peter Chan reports.

• Ionics seeks service success

  The NYSE-quoted company wants to be an unregulated water utility rather than an equipment supplier. Will this make it too attractive to its new competitors?

• Making the most of a bad deal

  Ionics’ deal to build a 130,000m³/d desalination plant in Trinidad started badly and got worse. There is still hope for an upturn.

• Veolia plots a new US strategy

  When Veolia decided to sell the bulk of US Filter to Siemens, the rump of the business needed a new strategy. COO Joe Burgess tells GWI the plan.