Vol 8, Issue 10 (October 2007)

Need to know

  • AT THE BARRICADES

    * Italy may be on the verge of rejecting private involvement in the water sector (see story p14), as momentum behind the so-called Lanzillotta Decree gathers pace.

  • FEELING BULLISH

    * Swiss fund manager Sustainable Asset Management is launching its sustainable water fund in the US.

  • SOUTHERN BELTER

    * The sale of Southern Water for £4.2bn to a consortium including JP Morgan, UBS and Australia’s Challenger Fund left us scrambling for our slide rules (see opposite and p8).

  • SPAIN VS. FRANCE

    * Saur – the number three player in the French market – is selling its 33% interest in Aguas de Valencia to Suez for €135 million.

  • TARIFF SURVEY

    Tariff Survey 2007 Update

Analysis

General

  • A busy Maspalomas

    Alison Ireland hands out invitations to her birthday party.

  • A-delayed reaction to desal

    As Adelaide finally admits it needs desalination, our Australia editor Max Borchardt asks: How many South Australians does it take to work out that the water’s running out?

  • American Water recapitalizes ahead of initial public offering

    A new $1.5 billion bond package from American Water will be a key test of investor confidence ahead of the IPO later this year.

  • Aquamatch strikes it lucky with Avsa desal win

    The planned desal plant at Avsa in Turkey may be small, but it could be the tip of the iceberg. Other Turkish municipalities are looking to follow suit.

  • Copasa share sale seen by March 2008

    Key local shareholders in the Brazilian state of Minas Gerais want to take advantage of Copasa’s rising share price to boost their coffers. Rumours of a similar move at Sabesp seem to be unfounded.

  • Gama chosen for Disi

    After over a decade in the pipeline, Jordan has awarded preferred bidder status to Turkey’s Gama Energy for the 325km Disi-Amman water conveyor.

  • German communities’ wastewater earnings rise

    A new study reveals that German public authorities have been stealing business from private companies.

  • Hyflux to float water investment trust

    Investors will gain another pure-play water investment when Hyflux floats a vehicle which will hold its water-related infrastructure assets. It is the latest move in Hyflux’s “asset-light” approach to doing business.

  • ISKI and ASKI raise tariffs – again

    Turkish municipalities are charging more and more for their water. There is no guarantee that the extra money will go where it is most needed.

  • Italian water PPPs poisoned by politics

    The Italian anti-private water lobby is growing in force. New legislation could constitute a breach of European law.

  • King of bidders wins the battle for Tianjin

    Veolia’s high stakes bidding strategy has scored another victory in China. CEO Antoine Frérot was in a bullish mood at the signing. Has he made Veolia a hostage to fortune by promising not to eat his words?

  • Mekorot seeks UV partner

    The Israeli bulk water supplier is looking to reduce its chlorine footprint by turning to UV. Plant suppliers will have to wait until 2009 for the tender.

  • Mission impossible: the Palermo PPP

    Reaching equilibrium on the Palermo PPP was no easy task. City water operator AMAP will now have to prove itself over the next five years in order to survive.

  • Ofwat fires warning shots ahead of PR09

    In its latest report on the industry, Ofwat has warned over investment shortfalls and the implications of interest rate fluctuations. It should give private equity investors food for thought in the run-up to PR09.

  • PPIAF’s new financing initiative

    Kathy Shandling discovers a new tool that helps sub-national entities access funding for infrastructure.

  • Qataris pick Keppel for Doha

    Singapore’s Keppel Seghers has beaten off international competition to win the $1 billion contract to construct the Gulf\'s largest wastewater treatment, water reuse and sludge treatment project.

  • RBS doubles its money on Southern sale

    After 11 years in Scottish hands, the Aussies have seized control of Southern Water with a blindingly bullish bid. Have the boys from down under paid over the odds?

  • Solari looks to exit the Chilean water sector

    Three years after buying a trio of concessions in the Chilean water market for $171 million, the Solari family is now eyeing an exit strategy which could net it $500 million.

  • Spain’s irrigators call for extra water

    Farmers in Spain want additional water infrastructure to offset the impact of global warming. The government is unconvinced.

  • Thames consults on 25yr forward plan

    Thames Water is the first UK WaSC to produce a 25-year draft forward plan for public consultation. As well as ambitious targets on leakage and metering, it wants to raise another £30 billion of debt.

  • Thames Water counts the cost of non-compliance

    Just as Thames Water’s relations with Ofwat seemed to be improving, a new set of fines has resulted in a fresh stand-off.

  • The global water market: a slow business with pockets of action

    Growing water scarcity and increased environmental concerns should ensure strong growth in the water sector. It is not as simple as it sounds, though. Christopher Gasson sums up the findings of GWI’s Global Water Market 2008 report.

  • “The mother of all pipelines”

    Saudi Arabia’s Saline Water Conversion Corporation has received expressions for interest for the eagerly awaited Ras Azzour to Riyadh water transmission pipeline, described as the largest of its kind in the world.

  • The price of controlling Agbar

    The mechanism for the joint bid for control of Agbar has now been settled. There is still potential for conflict over energy interests in southern Europe.

  • US wastewater under pressure

    Private industry used to be the source of America’s worst pollution. A survey published this month shows that municipal wastewater treatment plants are now by far the largest source of pollution in America’s rivers.

  • Water Standard Company hits on Australia

    The floating desal specialist has set its sights on Australia. It won’t all be plain sailing.

Brief

  • IN BRIEF – AMERICAS

    * Aqua America has completed two new acquisitions for a combined purchase price of $130,000.

  • IN BRIEF – ASIA

    * PUB, Singapore’s national water agency, has issued a total of S$650 million in new bonds: a S$350 million 7-year tranche via HSBC and OCBC carries a semi-annual coupon of 3.095%, while a S$300 million 20-year piece via DBS Bank has a 3.62% interest rate.

  • IN BRIEF – EUROPE

    * Consultant White Young Green has acquired Irish company P H McCarthy Consulting Engineers for €19.5 million.

  • IN BRIEF – MIDDLE EAST

    * Mekorot is preparing a 5-year plan that will include 30 desalination plants to treat brackish and seawater.

Market insight

  • Chlorine’s glory days

    It has the longest legacy of any chemical in the water treatment business. Nevertheless, chlorine’s future as a water disinfectant faces many challenges, as Gord Cope discovers.