Vol 6, Issue 7 (July 2005)

Need to know

• CHINESE ROULETTE

  The great and the good of the Chinese water sector turned out for the launch of a new lobby group to promote the rights of investors in the industry, the Water Industry Investment & Development Committee.

• DISPOSAL NEWS

  The sale of Weir Techna’s desalination business to Veolia has puzzled onlookers.

• DROUGHTS AND DESAL

  After a very dry winter and the beginning of a hot summer, drought is starting to bite across Europe, with water use restrictions being introduced across Italy, Spain, France and the UK.

• ELSEWHERE IN ASIA

  Singapore’s entrepreneurs are not slacking: this month saw a fresh crop of deals announced by Singaporean businesses.

• FEET IN THE CLOSING DOOR

  Veolia beat the trend in Eastern Europe away from involving foreign private water companies by winning contracts in the Czech Republic and Russia (see Market Profile p21).

• OPENING DOORS IN THE GULF

  MENA governments are finally turning their attention to the distribution of potable water as well as its production.

Analysis

• Insight - David Lloyd Owen

  Summertime blues.

• Strangers in a strange land

  There are a lot of people wanting to get into the water sector at the moment. Will they find what they are looking for?

• To him that hath shall be given

  Money flows away from need in the water sector.

General

• ADWEA seeks operators for Abu Dhabi and Al Ain

  There is a small but growing market for international private water operators in the Middle East. The latest prospect is Abu Dhabi.

• Coastal Commission gears up for desal confrontation

  There is 1.6 million m³/d of desalination capacity lined up for the Californian coast. Will the Coastal Commission stand in its way?

• First Algerian desalination deal gets financed

  Financial close of the Hamma project is a welcome boost for the Algerian desalination sector. It looks set to be the first and only deal to use international funds.

• Goldman backs water sector

  The investment bank rates the water sector as ‘attractive’ thanks to the looming global water crisis.

• Interest for Muscat wastewater O&M

  Abu Dhabi is likely to feature on international private water companies’ radar, but Muscat is up there too.

• Iran’s installed desalination profile

  (See: <b>Oil and gas boom to drive Iranian desal projects</b>) Iran is not among the group of countries with the highest installed desalination capacities. In fact, growth will have to start from a relatively low installed base.

• Moscow water system to be privatised

  The deal will be the largest private water deal so far this decade, but will foreigners be able to participate?

• No drought dividends for water firms

  Below-average rainfall in south east England will not bring forward investment, although it may be an opportunity to increase metering.

• Oil and gas boom to drive Iranian desal projects

  The development of oil, gas and other industrial projects along Iran’s Persian Gulf coast will create the demand for 875,000m³/d of desalinated water in the next 10 years. The figure rises to nearly one million m³/d if demand from agriculture is taken into account.

• Politics: the great unknown

  (See <b>Oil and gas boom to drive Iranian desal projects</b>) The new president and his political supporters might not like the idea of foreign investment in Iran, but when it comes to desalination they might have to be more pragmatic.

• Population growth starts to bite

  (See: <b>Oil and gas boom to drive Iranian desal projects</b>) Its growing population will put a strain on Iran’s water resources in the next 15 years.

• Slow expansion frustrates Gelsenwasser

  The communally-owned company remains ambitious both at home and abroad.

• Suez on the retreat in Latin America

  A decision on Aguas Argentinas has been delayed until the end of July, but the French firm is out of Santa Fe and La Paz.

• Suez prepares for Algiers contract

  Several years of negotiations look set to pay off.

• Terra Firma prospects soften

  Concateno’s hopes of buying Surrey & East Sutton Water have been dealt a blow by the Northern Ireland energy regulator.

• Thames agrees Chilean pay-off

  The European water company was expected to close the sale of its Chilean interests this month. Instead it has found itself negotiating to settle claims of corruption against one of its managers.

Market insight

• ECA region faces uneven prospects

  GWI has just completed Water Market Europe – an in-depth study of the outlook for the continent’s water and wastewater business. This month we feature the findings from the Eastern Europe and Central Asia section of the report.