Vol 5, Issue 8 (August 2004)

Need to know

• BAFFLING RUMOURS

  RWE chief executive Harry Roels had to spend some time at his company’s half-year results presentation dismissing rumours about the imminent sale of Thames Water.

• CORPORATE DEALS

  On the equipment supply side, Haestad Methods has been acquired by Bentley Systems.

• FRENCH RESULTS

  The sales of Culligan and the FCC interest came in time for Veolia’s half-year results which showed a 3.7% increase in revenues to €13.5 billion in the six months to the end of June 2004.

• PRIVATE SETBACK

  Publicly-owned utilities in Italy appear to have been given the go-ahead to continue to run water and wastewater services in the new optimal territorial areas (ATOs) being set up under the Galli Law, following a court ruling in the administrative court of Liguria, in the north-west of the country.

• TAMPA SAGA

  The drama at the Tampa Bay desalination plant looks set to continue after RWE/Thames and Veolia came in with proposals to fix the plant which were well outside the ball park.

• UK ACTION

  Champagne corks must be popping at the office of the UK water regulator, Philip Fletcher, in Birmingham, after he presented his draft determinations for the 2005-2015 review period.

Analysis

• Hurray for Shoaiba

  Saudi Arabia beats a heavily delayed deadline.

• Malaysia goes British

  The water minister wants to keep crony capitalism at bay.

• Smells fishy

  A convenient sewage flood has boosted Thames’ case for investment.

• Thirsty oligarchs

  Russia’s capitalists are buying into water. Do they know what they are getting into?

General

• A new Russian revolution

  A growing number of Russian water utilities are passing into private hands. This might not be a good thing in the absence of a clear regulatory system, argue Alexander Danilenko and Klas Ringskog.

• A ray of hope for UK mergers

  Ofwat may soon lose the ability to block water industry mergers, according to the experts brought together for a seminar last month by Denton Wilde Sapte.

• CWC pushes ahead in China

  Thames’ associate company in China has an established position in wholesale water projects. Now it is looking to expand into retail distribution.

• EU adds pressure

  Ofwat can only block mergers if it regulates reasonably. How long can its opposition to them be considered reasonable?

• Insight- David Lloyd Owen

  The market in China becomes even more complex.

• Malaysia looks for $12 billion

  The government is looking to the UK model of privatisation to bring its water infrastructure up to standard. Foreign firms are welcome.

• Marubeni in line for Taweelah B

  The Japanese company has a strong preference for Abu Dhabi deals. It is on course to pick up its first one in the power and water field – ADWEA’s mammoth Taweelah B project.

• Mitsui sees potential for RO

  RO has a good future in the Middle East. Finding the right partner to exploit the market’s potential will be a vital step forward.

• São Paulo looks to sell Sabesp share

  The state government is considering reducing its stake in its water utility, Sabesp.

• S&P’s gives thumbs up to review

  Ofwat’s draft determinations have been met with relief rather than jubilation. GWI’s UK correspondent Andrew Cavenagh talks to the analysts.

• Suez passes Santiago to Agbar

  Suez wants to reduce its emerging market exposure. Agbar wants to expand in Latin America. A deal for Aguas Andinas suits both parties.

• Taweelah speculation grows

  It is difficult to know what is going on at ADWEA’s Taweelah IWP.

• The crunch time is coming

  Consultant and GWI columnist David Lloyd Owen gives his thoughts on the draft determinations.

• The two faces of US rate regulation

  Californian water regulation is about to get more business-friendly thanks to Governor Schwarzenegger. Larry Chertoff compares the state’s pro-consumer regime with the pro-business regime in Texas.

• Tractebel confirms regional commitment

  The company has answered some of its doubters in the best way possible – by claiming two new $500 million deals.

Companies

• A wide-ranging business mix

  Marubeni may be best known as a power developer but it is also active in the water industry with projects in countries including China, Mexico and Libya. It has experience in engineering, finance and O&M.

• Aqualia breaks free

  FCC’s water subsidiary can now compete with Veolia, its former parent.