Vol 7, Issue 5 (May 2006)

Need to know

• ALLEZ LES BLEUS

  The Suez board had a sticky time at a shareholder meeting on 6 May to agree a poison pill defence against hostile bids as it finalises its proposed merger with Gaz de France.

• BACK FROM THE DEAD

  * Just as everyone thought that the Sydney desalination project was dead, suddenly there has been a flurry of activity to resurrect the project as soon as the city’s dams hit 40% capacity.

• EUROPEAN DEALS

  * Agbar and Suez seem to be moving in different directions in Europe as well as Latin America.

• GOOD STARTS

  * Cayman-based Consolidated Water had a great first quarter.

• MIDDLE EAST ACTION

  * The big news in the desal world is the shortlisting of a multiple effect distillation (MED) proposal for the Marafiq independent water and power project in Saudi Arabia (see story p11).

Analysis

• CHART OF THE MONTH

  The World Water Forum in Mexico published four final documents summarising the challenges in each global region.

• Insight - David Lloyd Owen

  Spain’s conquistadors have been making some safe European purchases to balance their portfolios.

• Suez’s smell of Gaz

  Christopher Gasson does not like the suggestion that a phone call from Paris put Suez back into Fujairah.

General

• Agbar’s puzzling bid for Bristol

  The Spanish company’s bid for Bristol Water looks too expensive and too rushed to be taken at face value.

• Aqualia moves into Eastern Europe

  FCC’s drive into the international water sector continues with the acquisition of Czech water company SmVak. The Spanish company anticipates an EU funding boom.

• Australia considers direct potable water reuse

  Australian water projects are multiplying as water resources become a national issue. Peter Trute reports.

• Australia water project listing

  Water reuse and desalination are moving up Australia’s investment agenda. Here are nine projects on the go.

• Berlinwasser to target the Gulf with Marubeni

  The German water company is also looking at ways of developing desalination expertise. China and Eastern Europe will remain the core market, however.

• China’s wastewater wastage worries

  The boom in BOT wastewater treatment plants seems to have left investment in building wastewater networks behind. This suggests new priorities for the 11th Five-Year Plan.

• French opposition to private water grows

  The campaign against private water companies seems to be gaining momentum in Suez’s and Veolia’s backyard.

• Garwood answers the questions for GE

  GE Infrastructure Water & Process’ new boss outlines his attitudes towards thermal desalination and the company’s challenge in the municipal water market.

• Gelsenwasser upbeat despite sales drop

  Falling industrial water and gas demand have had an impact on revenues, but it is not all bad news for the Rhur-based utility.

• Good start for Disi

  Second time around there is a good level of interest in the project.

• Hamburg’s Lübeck link up

  A 35km pipeline is an attractive alternative to a new water treatment plant.

• Inventory excitement

  Alison Ireland announces the launch of the 19th Desalting Plant Inventory.

• Jeddah airport prequalifies 10

  Interest is mostly local but some international companies have shown up.

• MED surprise in Marafiq bids

  Suez and Sidem would seem to have the edge but it is still too soon to call.

• Offshore desalination moves closer to reality

  Florida-based Water Standard Company sees a 30% saving in building a large desalination plant on board a ship. Now it is looking for customers.

• Russia loses its appetite for private water

  International financial institutions are stepping in with direct loans to municipalities, as public opinion turns against private sector participation.

• Suez joins Fujairah negotiations

  The move is unusual and has sparked speculation as to what is behind it.

• Thames sale options narrow

  High leverage and outsourced operations make an attractive option for RWE as it contemplates the sale of its water interests. But are the risks too much for the regulator?

• US execs talk strategy

  Last month’s Water Executive Forum in Philadelphia gave a snapshot of where the big industrial groups are in the water sector.

Brief

• NEWS IN BRIEF – AMERICAS

  * Brazil’s government recently approved US$1.1 billion of loans from international institutions to be used for sanitation and infrastructure projects.

• NEWS IN BRIEF – ASIA

  * China’s vice minister for water resources, Jiao Yong, stated on 29 April that the country intends to spend 4 billion yuan ($500 million) this year to provide potable water to 20 million of the country\'s rural population. Between 2006 and 2010, the central government plans to supply clean water to 100 million rural residents.

• NEWS IN BRIEF – MIDDLE EAST

  * It has been a busy month in the Gulf. As well as Marafiq (see story p11), developers have been working on their bids for the Mesaieed and Barka 2 IWPPs.

Market insight

• Rising tide of muck and brass

  EU directives have ensured that there is more sludge being produced across the continent, but fewer ways of disposing of it. Here Emmanuel Adler of A Consult in Lyon examines the opportunities the market presents.

• Sludge reduction beyond the superbug

  Larry Chertoff looks at three new technologies for minimising the cost of sludge disposal.

• The sweetest smell for those who are closest

  The US may not be seeing the same volume increases as Europe, but financial and regulatory restrictions on sludge applications still make for a buoyant market for some. Larry Chertoff reports.