Vol 7, Issue 8 (August 2006)

Need to know

• CREATIVE THINKING

  * ACWA Power Projects has come up with a gobsmacking bid for the Shuqaiq independent water and power project (IWPP) using reverse osmosis and a single contractor for both power and water (see p9).

• DOWNERS

  * Three bidding groups led by Suez Energy International, International Power and Marubeni all submitted offers for Kahramaa’s (Qatar General Electricity & Water Corporation) 181,850m³/d (40 MIGD) & 2,000MW IWPP at Mesaieed Industrial City back in April.

• FRENCH RESULTS

  * Veolia and Suez announced their half-year sales figures.

• INKING DEALS

  * The first four major desal projects in Spain’s Programa Agua have been awarded to consortia with strong local connections.

• MERGER STORIES

  * The deadline Thames Water offers has been pushed back a week until 15 August, but as yet there has been no indication of who has submitted bids.

Analysis

• CHART OF THE MONTH

  The market for energy recovery devices to desalination is in transition.

• Insight – David Lloyd Owen

  Through the looking Glas.

• Joy of capitalism

  Christopher Gasson looks at how the wall of money looking for a home in the water sector will change the shape of the industry.

General

• Canadian shell seeks consolidation play

  With former Zenon chief operating officer John Coburn behind it, Water Capital is pursuing a roll-up strategy in the water sector.

• Communal partner for Hanau

  Under pressure to cut prices the city is selling 49% of Kreiswerke Hanau.

• Domestic firms share out Spanish desal contracts

  Degrémont is the only foreigner to gatecrash the party as Acciona, Cadagua, Sadyt, Befesa and Aqualia are all rewarded.

• Dutch insurer’s development fund initiative for water

  Kathy Shandling looks at a Dutch insurance company’s initiative to encourage sustainable water investment.

• Garcia faces “water for all” challenge

  He got elected on the back of big promises. Now he has to deliver, but reluctance to pay is as big an issue as ever.

• GE enters private water finance business

  The financing arm of GE Infrastructure has private water projects in Europe and North America in its sights. It is also preparing to have a go at the big power desal deals in the Middle East.

• German government under fire on wastewater tax

  A discriminatory sales tax regime is one of the major barriers to the expansion of private water. It is a “grave contravention of EU law” says the industry association.

• Integrating success at US Filter

  Former US Filter CEO Andy Seidel analyses where Siemens have got things right.

• Investors prepare for SWCC sell-off

  Extending the life of old desalination plants could be good business. As long as the energy price is right.

• Jakarta sale attracts infrastructure investors

  Suez’s Indonesian concession was blighted by the Asian crisis but those troubles now seem in the past. To some.

• Minister forces Mekorot to move

  Israel’s national water company is finally facing up to a competitive future. It is the only way the Ashdod desalination plant will get built.

• Mobile water’s irresistible attraction

  Gord Cope looks at why emergency water supply to power stations and other industrial plants has become such a key market for GE and Siemens.

• Norit X-Flow scoops Palm UF membrane deal

  With Hyflux finally out of the picture, Norit X-Flow is set to supply its Seaguard UF pretreatment membranes. It is a significant contract award for the Dutch company.

• Olympic deadline for China’s water sector

  The reform of China’s water sector still lags behind the amount of investment flowing into it. GWI China correspondent Kathy Liu reviews progress.

• On the road...

  Alison and Jenny go to Disneyland.

• Private equity groups look for Thames alternatives

  Kelda and Severn Trent are in the spotlight as investor interest in the UK water sector grows. Andrew Cavenagh reports.

• RO comes out top of fight for Shuqaiq

  ACWA Power Projects looks set to continue its clean sweep of the Saudi desalination programme with a stunning bid for the Red Sea power and water project.

• Securitisation comes to China’s water sector

  Nanjing has issued the first asset-backed security in the water sector. What is the deal?

• Siemens drops US Filter name as business booms

  After two years in German hands, the US water treatment group is in better shape than ever. Laura Bridgewater investigates.

• Thames to exit PAM Jaya

  As GWI goes to press, a deal to get Thames is also getting out of Jakarta.

• X-Flow award raises questions

  The loss of the membrane supply contract has people wondering whether Hyflux walked or was pushed from the Palm project?

• ‘YUK factor’ ends recycling hopes

  The people of Toowoomba are not convinced that technology can make wastewater safe to drink. Peter Trute reports.

Brief

• IN BRIEF – AMERICAS

  * Colombia’s popular president Alvaro Uribe embarks on a second term with plans to dramatically improve services in a country where 7.6 million people receive water unfit for consumption.

Market insight

• Making development finance work

  To achieve the Millennium Development Goals for Water and Sanitation, more money has to be made available to the municipalities who can make a difference. Kathy Shandling examines who is doing what to make this possible.