Vol 6, Issue 6 (June 2005)

Need to know

• CHINESE MANOEUVRES

  The mooted integration of the Beijing Water Works Group, Beijing Municipal Drainage Company and the Beijing Capital Group into a single powerful water company is looking increasingly likely.

• DEGRÉMONT IN NORTH AFRICA

  Degrémont announced the award of three new contracts in the MENA region.

• DESAL PROGRESS

  The boom in the Middle East, however, continues to be driven by the desalination market.

• DISPOSAL NEWS

  RWE Thames’ disposal of its unwanted international assets is reaching the endgame, with Spanish construction group Acciona lining itself up for both desalination specialist Pridesa as well as Thames’ three Chilean water companies, Essel, Aguas Nuevo Sur Maule and Essbio.

• OVERSEAS CHINESE

  Two other Singapore-listed water companies based in China also performed strongly this month: United Envirotech’s shares were set to rise on news that profits were up 28% year-on-year, while Bio-Treat Technology’s shares attracted investors thanks to two BOT wastewater deals secured in Jiangsu province in March and April. The star performer of Singapore’s water sector is Hyflux. Has it peaked? Read the report on p10.

• WASTEWATER GROWTH

  Wastewater projects are starting to feature more prominently in the Middle East this year, as governments come to terms with the massive levels of investment required to improve services (see story p8).

Analysis

• Cracks in the money wall

  EU grant funding for Central Europe can’t go on.

• Insight - David Lloyd Owen

  Hedge funds take to water.

• The villain of Dar es Salaam

  Biwater might have been naïve about Tanzania but shouldn’t they have expected the World Bank’s support?

General

• Acuamed’s fast track to desalination

  After scrapping the Ebro transfer scheme, Spain has had to move double quick to institute a large-scale desalination programme. GWI’s Richard Weyndling talks to the man in charge, Adrián Baltanás.

• Investors push for disposal

  UK water companies are under greater pressure than ever to focus on their regulated businesses.

• No such thing as too much money?

  Development finance editor Olivia Jensen investigates EU grant funding of central Europe.

• Operators mull Yerevan lease contract

  A new deal for the Armenian capital is on the cards but water companies will need to think carefully about the tariff. Some might decide the risks are too high.

• Positive road ahead for wastewater projects

  The Middle East wastewater sector, once bereft of any significant activity, has started to see some action.

• Saudi IWPP project costs rise

  The Shoaiba IWPP will cost $700 million more than first anticipated once development costs and finance charges have been taken into account. The cost of the IWPP programme has also risen.

• Strong results boost credit rating hopes

  Only Severn Trent’s pension problems spoiled the mood as full-year results came in from the English water companies.

• Taweelah RO remains on track, says IPower

  IPower, Mitsui and ADWEA are fully committed to the project. They are rather upset that others think they are not.

• Tax break boost for private finance

  Larry Chertoff looks at how the removal of restrictions on private activity bonds could revitalise public-private partnerships in the US.

• Water stocks build momentum

  The growth of The Wall Street Transcript’s water industry conference reflects strong retail investor interest in the water sector. It is a pity that the stocks are all so small.

Companies

• Biwater’s Tanzanian blindfold

  Did Biwater fall victim to ruthless local politics in Dar es Salaam? Frederic Blanc-Brude investigates.

• High tide for Hyflux?

  Hyflux shares have risen nearly 50% this year. Some analysts are starting to suffer from vertigo.

Market insight

• Reuse goes for global growth

  Water reuse was once a niche sector dominated by Japan. Now it has international horizons and over the next decade will deliver stronger growth than desalination, according to GWI’s Water Reuse Markets 2005-2015.