Vol 7, Issue 7 (July 2006)

Need to know

• BACK FROM THE DEAD

  * Is the international private water concessions market coming back to life?

• GULF NEWS

  * The key news from the Gulf is the announcement of a new water and power plant at Ad Dur in Bahrain to cater for growing demand from tourism developments (see p24).

• SITTING ON YOUR HANDS

  * Spain is the big story in this month’s GWI, with the first round of bids in from the Acuamed desalination programme, interviews with the boss of Acciona Water and the boss of Acciona, and news of a Spanish consortium’s bid for Israel’s Hadera desalination plant (see pages 8-11).

• STAKE SALES

  * Suez has yet to decide whether to offload its remaining 16% interest in Maynilad.

Analysis

• CHART OF THE MONTH

  Chinese demand for water treatment products is projected to increase by 14.1% per year to RMB34.1 billion ($4.27 billion) in 2010, according to a new report by Freedonia.

• Insight – David Lloyd Owen

  Quenching Africa\'s thirst.

• On the wrong road

  If Veolia wants sustainable growth, it should learn from Acciona.

General

• £150 million leaks fiasco hits Thames sale

  With relations between the water company and its regulator at an all-time low, potential buyers are worried about the outlook for Thames.

• Acciona Water’s quest for quality

  Pridesa has some special qualities which have enabled it to emerge intact from a tortuous sale process. With the sustainable development zeal of Acciona now behind it, the company looks stronger than ever. Christopher Gasson investigates.

• Acciona’s sustainability vision

  José Manuel Entrecanales Domecq has transformed Acciona. Water is very much part of his mission.

• Bahrain considers new IWPP

  Tourist developments are increasing the demand for water in the Kingdom. More will be needed.

• Cascal back on the concession trail

  Cascal is now ready to pursue long-term operating contracts again – with a new partner.

• Chile goes for complete coverage by 2010

  It will cost $1.4 billion, but the Chilean regulator wants to see a modern water and wastewater service.

• Dow China buy heralds battle of the giants

  Buying a Chinese UF membrane manufacturer puts the chemical company against the likes of GE and Siemens. Whoever wins will redefine the structure of the US water market.

• Drought boosts metering in southeast

  Consumers and environmentalists back extending metering. What about the regulator? Megan Konar reports.

• Four foreigners brave Spanish bids

  Only Veolia, Degrémont, IDE and Norway's Aqualyng have tried their luck against the locals in the first big tender for the next generation of desalination plants in Spain.

• GE steps back from Hadera despite strong position

  The American giant did not like the look of the terms, so one local and one international consortium are the only two to bid for the 274,000m /d desalination plant in Israel.

• Israel’s silicon dream for water

  Mekorot, Israel’s national water company, has been given the role of turning the country into a Silicon Valley for water technology. Chairman Booky Oren has been busy.

• Malaysia goes for French model

  Malaysian water minister Lim Keng Yaik thinks he has found a way to invest in the country’s water infrastructure without increasing tariffs too steeply. It looks as if some coercion will be involved.

• Manila West draws the crowds

  Interest is especially strong in the eastern part of the city.

• Ofwat maintains the financeability focus

  UK water shares might be riding high but Keith Mason, director of regulatory finance for the UK regulator, tells Andrew Cavenagh that there is no need for radical change.

• Palm projects on track

  Palm Water is upbeat about meeting its deadline, with ACWa’s support.

• RAF B2 achieves close

  Construction has already started and the plant is due to become operational next summer.

• River quality woes in China

  The water quality of Chinese rivers has fallen but measures are being taken to improve the situation.

• SembCorp seals Fujairah

  The Singapore company acquired the existing assets for $1. 06 billion with an additional $420 million to be spent on a 225MW power expansion.

• Siemens secures an Israeli test bed

  The most significant deal Mekorot has signed this year has been with Siemens Water Technologies. CEO Roger Radke talks about the deal.

• The secrets of Caesb\'s success

  Brazil\'s utilities can learn a lot from Caesb about service provision. Now it is looking into new territories.

• Wastewater win for Veolia in Germany

  A town without an outsized wastewater treatment plant has signed a deal with Veolia to optimise the situation.

Brief

• IN BRIEF – AMERICAS

  * Peru’s water services regulator Sunass has proposed a 16% increase in water tariffs for state-run Sedapal, which provides water for Lima and the neighbouring Callao port, to help generate $606 million in investment for crumbling infrastructure and leaking pipes over the next five years.

• IN BRIEF – ASIA

  * Ion Exchange India announced on 30 June it is to establish a new subsidiary in Bangladesh with Rs2.5 million ($54,000) of equity.

• IN BRIEF – MIDDLE EAST

  * Veolia Water has been awarded a five-year performance contract with a three-year extension option by the Oman Wastewater Services Company (OWSC) to assist with management of wastewater services in the Omani capital.

Market insight

• How fast can desal grow?

  The 19th Worldwide Desalting Plant Inventory published this month by Global Water Intelligence captures the frightening pace at which the desalination industry is growing – more than 25% year-on-year.