Vol 6, Issue 3 (March 2005)

Need to know

• CHINA NEWS

  No month seems to go by without Hong Kong-based China Evergreen announcing another water deal on the mainland: this time it is a 22-year contract in Hebei province.

• COMPANY RESULTS

  Suez, Agbar and RWE brought out their full year results in time for GWI’s March deadline (Veolia will be covered in April). Suez did well overall (see p16) but the RWE results were more interesting (see p17).

• CONFERENCE UPDATE

  The only thing that seems to be growing faster than desalination and water reuse seems to be conferences on the subject.

• ELSEWHERE IN ASIA

  In Japan, February saw the first-ever electricity to water crossover. Kansai Electric Power Co., better known as Kepco, will be the first electric company to pick up a water service outsourcing contract, for Miki in Hyogo Prefecture.

• IN THE KINGDOM

  The opening of the envelopes for the Shoaiba IWPP was one of those genuinely dramatic moments that makes this industry an exciting place to be.

• UK CONTRACTS

  United Utilities has opted to stay with its existing contracting partners for its £2.9 billion AMP4 investment package.

Analysis

• Desal and marginal supply

  A fixed cost to meet variable demand.

• Insight - David Lloyd Owen

  Private equity – what do they see in a SWC?

• The right man for the Bank?

  The development community ignored politics for too long. It won’t be able to much longer.

General

• ACWA Power offers sole bid for Shoaiba

  This isn’t necessarily a bad thing, despite the market’s initial reaction.

• Agbar and Suez buffeted in Latin America

  Argentina, Bolivia, and now Chile, are proving difficult markets for the French water giant and its Spanish sibling.

• Ashdod victim of Mekorot restructure

  The 125,000m³/d desalination plant could fall victim to the government’s plans to restructure the national water company.

• Bahrain resort city plans SWRO plant

  The Middle East tourist market is booming and it is creating a need for more desalinated water.

• Can output-based aid work for water?

  The World Bank hopes that subsidising tariffs might help attract investment in the water sector. It won’t be simple, reports Frederic Blanc-Brude.

• Consolidated Water scores Blue Hills success

  The Cayman Islands company has snatched the $25 million SWRO project from under Biwater’s nose.

• Contract ops finds a quieter life

  After meltdown in 2003, steady organic growth has replaced the scramble for market share in the US contract operations sector. Larry Chertoff reviews the market in 2004.

• GLOBAL WATER AWARDS – who changed the world in 2004?

  Global Water Intelligence announces the 23 winners of its first Global Water Awards.

• Hyflux claims Dubai DBOO projects

  The Singapore company’s JV with the local Istithmar is for the construction of a SWRO facility and a wastewater plant for Palm developer Nakheel.

• Israel’s frustrated desal progress

  At a lively Israel Desalination Society conference this month, the challenges facing the country’s large-scale desalination plan became abundantly clear.

• Physical scarcity to financial scarcity

  Israel’s water commissioner Shimon Tal outlines the challenges facing Israel’s water sector as the large-scale desalination plan moves into action.

• The ‘Water for Life’ decade – business as usual?

  The Millennium Development Goals are not getting any closer. Is local capacity building the answer? David Lloyd Owen investigates.

• World Bank re-engages with water

  The Bank admits that its old model for water didn’t work. Now it is looking for something new, reports Olivia Jensen.

Companies

• Agbar inches ahead in 2004

  With no relief in Latin America, growth has been elusive.

• RWE opts for stability before growth

  The German utility’s water business was slow going in 2004; but it is still committed to a big investment plan.

• Suez beats debt targets

  The French water and power group is back on the growth trail.

• Weir Techna sale moves ahead

  The group wants a deal in the second quarter of 2005.

• Who will buy Weir Techna?

  It is not an easy sale, but it is a real opportunity for someone with vision. Christopher Gasson takes a closer look.

Market insight

• Step change in technology

  Membrane technology is revolutionising the water and wastewater treatment sector. John Kolodziejski investigates what is driving the industry.