Vol 8, Issue 12 (December 2007)

Need to know

  • CHOPPY MARKETS

    * Market conditions continue to take their toll on water fundraisings.

  • NEW TRENDS

    * The next big thing in the American water sector seems to be long-distance private water pipelines.

  • PRIVATE MOVES

    * The EBRD has taken a 10% stake in Veolia Voda - the French company’s central and eastern European subsidiary.

  • UPSIDE IN THE CRUNCH

    * The IPO postponements may create an interesting opportunity for private equity.

Analysis

General

  • A growth platform built on trust

    A new business trust will allow Hyflux to recycle its capital more efficiently. CEO Saud Siddique explains his vision for growth.

  • Aussie miner strikes wastewater treatment deal

    An Australian mining company has agreed to purchase treated wastewater for use in ore transportation. The pipeline and treatment plant will be tendered shortly.

  • Christ finds itself in the wilderness

    Christ Water Technology’s stock has been in decline since mid-November. A rushed capital increase and a set of results which fell short of expectations have not helped.

  • Competition in other places

    The latest round of criticism to be directed at Ofwat has come from the Lords’ Committee on Regulators. Ofwat’s public response shows how seriously it takes the issue.

  • Controlling China’s water resources

    China needs to attract foreign investors to help fund large-scale water control projects. Ensuring an attractive off-take risk profile will be a key part of the initiative.

  • “Corrupt” Conagua under pressure to reform

    Mexico’s national water commission is attracting increasing levels of criticism. It may be time to re-think the way the country’s water sector is managed.

  • Death warrant for private water in Bolivia

    The country’s water sector is in disarray after the sacking of the water minister in late November. President Morales’ re-nationalisation plans can only hurt it further.

  • Degrémont builds on Egyptian success

    Degrémont has built on its past experience to win an extension to Africa’s largest wastewater treatment plant.

  • Desal on the double quick for Jubail

    Three consortia are queuing up to build a 75,000m<sup>3</sup>/d desalination plant for Marafiq in less than five months. Is it the start of an impatient trend?

  • Doosan bid favoured at Shuwaikh

    Doosan’s patience has finally paid off. Kuwait has approved the Korean desalter’s KWD88 million ($321 million) bid for the country’s largest SWRO plant, a year after the project was retendered.

  • From stalemate to Czech-mate

    A resolution has been reached in the battle to source EU funding for Czech water projects. Not all players are planning to back down.

  • Fujairah 2 reaches financial close

    International Power and Marubeni have taken ADWEA’s latest IWPP to financial close on schedule.

  • How green is your alley?

    An innovative groundwater recharge scheme in Chicago will save taxpayers money and reduce flooding. Kathy Shandling investigates.

  • “It’s UU!” says Emaar

    United Utilities and Dubai real estate giant Emaar have formed a JV to manage utility services for Emaar properties in Dubai.

  • Kelda joins the private equity party

    The unsuccessful Southern Water bidders have bagged a bigger prize – with no rivals to unseat them this time.

  • Kronenberg broadens his portfolio with Tahal

    After 20 years with IDE, Gustavo Kronenberg jumped ship for Tahal Group in October this year. GWI finds out what prompted the big move.

  • Mekorot eyes foreign investments

    The Israeli bulk water supplier wants to commit equity to desalination projects beyond its home shores. Investors will be able to share in the spoils.

  • New Federal pact to protect Colorado River

    Kathy Shandling reports on a new multi-state pact which could revolutionise the way water from the Colorado River is allocated.

  • Solving Russia’s drink problem

    Veolia Voda has brought in the EBRD as a strategic equity investor. It is hoping to use the bank’s expertise to capitalise on opportunities in the Russian water market.

  • Sydney boosts its recycled water credentials

    A new BOO contract for the supply of treated wastewater to Australian industry is one step closer to reality. It will help meet the new government’s recycled water target.

  • The West’s new gold rush for water rights

    Fast-growing cities in America’s West are driving the value of water rights to new highs, attracting investor interest. What are the dynamics of this emerging market?

  • UK interims overshadowed by M&A activity

    While the impact of the floods dented Severn Trent’s profits, the results season at the quoted UK water plcs was for the most part dominated by takeover activity.

  • Unlocking the value of sale-and-leaseback

    Welsh Water’s latest round of financing means that close to one third of its funding is derived from sale-and-leaseback transactions. What advantages does this particular asset class offer?

  • UU seen as vulnerable after £1.5 billion payout

    A larger than planned special dividend could mean United Utilities is the next UK water plc to disappear from the stock exchange.

  • Veolia ousts Suez from Milwaukee

    United Water has failed to retain its Milwaukee wastewater contract, after Veolia pipped it to the post with a $400 million bid. The projected savings for customers are only a fifth of what they were previously.

  • Wabag’s Indian reunion

    The fusion of Wabag Austria and Wabag India is now complete. With financial support from India’s largest private bank, management has big ideas for the expanded group.

  • Water divides Spain’s political factions

    The water debate in Spain is not simply a case of water transfers versus desalination and reuse. It is creating divisions within Spain’s main political parties ahead of next March’s election.

Brief

  • IN BRIEF – AMERICAS

    * Agbar’s Chilean subsidiary Aguas Andinas is to start work within the next few weeks on its long-planned Los Nogales plant, which will complete the provision of wastewater treatment to metropolitan Santiago.

  • IN BRIEF – ASIA

    * Suez CEO Gérard Mestrallet was in China at the end of November, where he signed a pair of strategic environmental partnerships.

  • IN BRIEF – EUROPE

    * Spanish government plans to triple the reuse of regenerated wastewater to 1,200hm<sup>3</sup>/yr by 2015 received a boost in early December with the approval of legislation establishing a legal framework and quality parameters for the use of recycled water.

  • IN BRIEF – MIDDLE EAST

    * Despite completing an international roadshow on 13 November, the Dubai and Electricity Water Authority (DEWA) opted not to proceed with its US$ Sukuk.

Market insight

  • The ostriches of Europe

    Few nations have adequately prepared cost estimates for the impact of the WFD. With implementation costs now estimated at €200 billion, things are getting tight.