Vol 9, Issue 3 (March 2008)

Need to know

• AQUA VERSUS AMERICAN

  * RWE seems keen to speed up the flotation of American Water.

Analysis

• Where will China's water come from? - CHART

  This month’s chart comes out of GWI’s latest report:Water Market China 2009.

• Insight - David Lloyd Owen

  Beijing’s planned Olympic deluge highlights its water management challenge.

• Scary new technologies

  Christopher Gasson looks at the challenge of launching a new technology in the water sector.

General

• Abcon cements partnerships ahead of UN talks

  Brazil’s private water association has forged links with AquaFed and Instituto Trata Brasil to help solve the country’s basic sanitation problems.

• Abu Dhabi awards sewerage reticulation contracts

  Local Emirati companies will construct the sewerage infrastructure to support the new wastewater treatment plants in Abu Dhabi and Al Ain.

• Agbar looks for the silver lining

  Agbar sees opportunities in the collapse of the Spanish construction boom. Others are not so sure.

• Agbar reports boost in profits

  Aguas de Barcelona’s profits rose 6% in 2007. Analysts’ demands for a clear strategy statement could be satisfied following changes at the board level.

• American Water IPO seen by 12 May

  RWE seems set to divest the majority of American Water by the middle of May. It will allow American to focus on recreating shareholder value.

• An irresistable force for India

  Veolia and Doshion have pooled their resources to try to crack the Indian water market. It may just be the right combination to overcome the cultural and administrative challenges.

• Aqua America slips on missed targets

  For the second year running, Aqua America’s earnings have grown by a fraction of the target set by management. The stock performance sums up the market’s view.

• Ashdod desal project faces uncertain future

  The lack of an official tender for the proposed Ashdod desal plant has raised the threat of legal action. It is not the most auspicious of starts for Mekorot’s new subsidiary.

• Bids in for Aquapor privatization

  Águas de Portugal is one step closer to choosing a buyer for its concessions arm. Bidders will need to speak Portuguese to be in with a chance.

• Cave follows Pitt into the spotlight

  We’ve had the Pitt review. Now, competition in the UK water industry will be scrutinised by a team headed up by Martin Cave. The critics are already circling.

• Drugs in the water

  A new report finds that US municipal water supplies and the aquifers that feed them are contaminated with pharmaceuticals. Kathy Shandling reports.

• FACE TO FACE

  * It has been a month of important interviews for GWI. The big one is with Turkish environment and forestry minister Veysel Eroglu (see pp.8-9).

• Manila Water goes from strength to strength

  Manila Water’s star is on the ascendant, despite ongoing wastewater challenges in its core concession area. Perry Rivera talks to GWI’s Rhys Owen about his company’s expansion plans at home and abroad.

• New partnership to boost German PPPs

  A new consultancy is being set up to advise the German public sector on PPP strategy. ‘Partnerschaften Deutschland’ will itself be structured as a public-private partnership.

• Roll up, roll up, roll up

  Alison Ireland advises you that places at our conference are going fast.

• Scottish Water under scrutiny

  The debate over Scottish Water’s future has taken a new turn. The issue is threatening to overshadow the introduction of billing competition in April.

• Severn Trent Services proves its worth

  The US-based water equipment and services business can justify its place in Severn Trent plc’s portfolio, despite the trend towards demerging non-regulated activities.

• Severn Trent tastes Euro bond success

  The highest rated UK water company has succeeded in issuing the largest ever €-denominated bond in the sector. Anglian could be next to tap the market.

• South Australia – the driest of the dry

  Investing in Australia’s driest state is thirsty work, but someone’s got to do it. Max Borchardt learns the hard facts from SA Water’s John Ringham.

• Spanish election win “vindicates water policy”

  The re-election of the Socialists in Spain should ensure the smooth completion of the government’s desalination programme. Irrigators, meanwhile, are keen to re-engage in battle.

• START UP THE BAND

  * Modern Water, the “pre-revenue” water technology start-up, saw its share price jump 25% after announcing its first set of full-year results – administrative costs of £2.7 million against net interest of £1 million from its £29 million cash pile.

• SWCC awards Jubail pipeline

  Saudi Arabia’s Saline Water Conversion Corporation has awarded its latest water conveyancing contract. The biggest prize is yet to come.

• Texas embraces design-build

  Kathy Shandling discusses the future of the DB project delivery model.

• Thames eyes sterling debt repackaging

  The maturity of a tiny Yen bond later this month will enable Thames Water to raise its leverage by 3%. It is already eyeing a new sterling bond with an innovative structure.

• The hidden problem of China’s water utilities

  Shortcomings in southern China’s water infrastructure were exposed during a recent cold snap. It is a wake-up call for utilities right across the country.

• The price of Australia’s water future

  Water pricing in Australia is at a cross-roads. Max Borchardt interprets the signs.

• Turkey’s water future in Europe

  The new Turkish water minister sees private sector investment as a vital tool in his bid to revolutionise the way his country manages its water resources. GWI’s Gökhan Yücel talks exclusively to Veysel Eroglu.

• Turkish water sector hit by corruption scandal

  Allegations of corruption have brought the role of the private sector in Turkey’s water market into question. The knock-on effects could be massive.

• US inter-state water wars get silly

  The battles between neighbouring US states over water rights have reached new extremes. Kathy Shandling summarises the latest developments.

• VEOLIA FALLS AS PROFITS RISE

  * Investors cut 10% off the Veolia Environnement share price after the company announced a 22.5% increase in net profits in 2007, to €933.2 million.

Brief

• IN BRIEF – AMERICAS

  * Rio de Janeiro State water company Cedae may issue BRL500 million (US$305 million) of debentures as a means of testing the market ahead of an IPO in late 2008/early 2009, State finance secretary Joaquim Levy told reporters in early March.

• IN BRIEF – ASIA

  * Bluewater Bio has signed an MOU with Vietnam-based financial services company Indochina Capital to bid on municipal and industrial wastewater treatment projects in Vietnam.

• IN BRIEF – EUROPE

  * As part of its bid to expand in the municipal and industrial water sector in Eastern Europe, Earth Tech Engineering has promoted Nicola Henderson to business development manager for Europe.

• IN BRIEF – MIDDLE EAST

  * Abu Dhabi-based real estate giant Aldar has awarded Metito a contract to construct a 38,000m³/d sewage treatment plant to serve its Yas Island development.