Vol 7, Issue 3 (March 2006)

Need to know

• DEPARTURES

  * Scottish Water is under immense pressure after the resignation of its Chair, Alan Alexander, on 20 February.

• DRY COUNTRIES

  * Sidem’s status as the market leader in Libya’s desalination sector has been further strengthened in the aftermath of parent company Veolia’s purchase of Weir Techna.

• MAD MARCH MERGERS

  * It must be the Spring air. The water sector has been gripped by the urge to merge.

• MEMBRANE FALL-OUT

  * The Zenon/GE merger looks as if it is going to have a domino effect on alliances in the membrane market.

• MY ENEMY’S ENEMY

  * The campaign against private water took a bizarre turn when 10,000 people showed up to protest against the World Water Forum in Mexico City.

• PRIDE BEFORE FALL

  * Hyflux has been removed from its Palm Water joint venture and at the same time issued notice that its Hyflux Middle East LLC subsidiary is to be dissolved.

Analysis

• CHART OF THE MONTH

  This is the last year we’ll see the big three post results together.

• Insight - David Lloyd Owen

  As the dry spell continues, England will come to terms with metering.

• The World Water Forum’s false promise

  Christopher Gasson raises questions about Mexico City.

General

• Acciona to buy Pridesa

  The Spanish construction group is hoping the acquisition can open up international markets.

• Australia’s water challenge

  Political appointment may indicate more private sector participation.

• BOT rather than big bang for Beijing

  Do the new BOT rules mean complete privatisation is now off the cards?

• Brazilian water PPPs gather momentum

  Slowly Lula’s reforms are bearing fruit. GWI Brazil correspondent John Kolodziejski investigates.

• Bulk water transport on the brink of breakthrough

  Returning oil tankers filled with water to the Gulf has often been suggested as a solution to water shortages. It is about to become a reality.

• Celebrating victory

  Alison Ireland on making the most of the Global Water Awards.

• Facing up to the future

  Libya’s water industry is not quite at a crossroads but the time is rapidly approaching when strategic decisions will need to be taken to safeguard supplies. This is likely to herald new opportunities for contractors and suppliers.

• French farce with an unhappy ending

  Christopher Gasson looks at who has come out worse from the Suez/Gaz de France merger.

• Kelda abandons Aquarion

  Yorkshire Water’s parent company is pleased not to have lost its shirt. Macquarie is looking for a long-term hold.

• Lower Saxony opens for business

  A new law allowing private wastewater concessions is a step forward, but opposition could still stymie real progress.

• Macquarie’s infrastructure vision

  The Australian bank looks set to be a major player in the water sector.

• Small gains for RWE water interests

  RWE expects a flat year for Thames and American Water: the real challenge will be dealing with the regulators as the companies are prepared for sale.

• Suez falls for Veolia plot

  The world\'s two largest water businesses have found themselves on either side of a battle over energy consolidation and economic nationalism. Neither looks good.

• Suez\'s new deal for Millennium Development Goals

  The French company is not abandoning the developing world, despite heavy losses in Latin America.

• The price is right for Zenon

  GE has taken advantage of the Canadian membrane company’s difficulties to make an offer. Was it worth it?

• Veolia on the defensive at home

  A report on profiteering has put Veolia on the back foot.

Brief

• NEWS IN BRIEF – AMERICAS

  * Aqua America lost some friends this month when it published its fourth quarter results.

• NEWS IN BRIEF – ASIA

  * More than a year after it announced its intention to sell its international interests outside Europe and North America, Thames Water has finally sold its 30% interest in Thai Tap Water Supply (TTW) to its partner in the project, Ch. Karnchang.

• NEWS IN BRIEF – ASIA #2

  * Tianjin Capital Environmental Protection (TCEP) has beaten off a total of seven competitors to win the 25-year transfer-operate-transfer (TOT) contract to run Hangzhou City’s Qige wastewater treatment plant.

• NEWS IN BRIEF – EUROPE

  * UK water provider, Severn Trent will refund the £7 million overcharged to customers.

• NEWS IN BRIEF – MIDDLE EAST

  * Now that Shoaiba is a done deal, attention in Saudi Arabia has switched fully to the Shuqaiq IWPP.

Market insight

• Contract ops reaching maturity

  Larry Chertoff examines the recovery in the market for operating contracts for US municipalities.