Vol 9, Issue 4 (April 2008)
Need to know
- BAD MOVES
Our annual survey of the US contract operations market shows that revenues among the six big operators dipped slightly in 2007.
- CORPORATE RESTRUCTURING
* Siemens is re-organising its water business in the first major shake-up since the acquisition of USFilter in 2004.
- GOING PUBLIC
* After a faltering start to 2008, the IPO calendar in the water sector has really picked up pace, with three deals set to be priced over the next few weeks.
- GREEN SHOOTS IN CALIFORNIA
* Have we seen a change of heart on desalination at the Pacific Institute? After publishing a critique of desalination in California under the title “Desalination with a grain of salt”, the institute established itself as the intellectual leader of the opposition to desalination in the state (there have been numerous less intellectual followers).
- THINKING BIG
* Algeria’s AEC has opened bids for four projects with a total capacity of 850,000m3/d, with Hyflux, Befesa, Biwater, and a team of Inima and aqualia in the low bidder positions.
Analysis
- America’s private aversion
Christopher Gasson asks whether the US is ready to let capitalism into its water sector.
- Water consumption in South East Queensland - CHART
This month’s chart comes from South East Queensland’s new water strategy document.
- Insight - David Lloyd Owen
Big water, little pharma – traces of drugs carry traces of concern
General
- A tool against privatisation
A new German report suggests that municipal water companies are turning to benchmarking to boost internal efficiency – and to avoid privatisation.
- Acciona Agua forges Portuguese links
The Spanish company has teamed up with a local partner to take advantage of opportunities in the Portuguese water market.
- Accounting for embodied carbon
A new tool being developed by MWH will help the UK water industry to meet Ofwat’s carbon reporting standards.
- Adelaide opts for DBO approach
Consultant KPMG has recommended a DBO approach for Adelaide’s desal plant, in order to fast-track the project. The decision flies in the face of federal initiatives.
- AEC serves up a feast for desal developers
Algeria came a step closer to achieving its desalination target as it opened bids for four major SWRO plants with a combined capacity of 850,000m3/d. There was something for everyone.
- Agbar helps Iberdrola exit the water sector
Aguas Andinas has continued its march into Chile by relieving Iberdrola of its last remaining water asset.
- Al-Musallam to head National Water Co.
Saudi Arabia’s conspicuously able deputy water minister has been selected to run Saudi Arabia’s asset-owning National Water Company. He is pressing on with the government’s reforms.
- Alinda begins South Staffs refinancing
The new owner of South Staffordshire is planning to increase the group’s gearing. Standard & Poor’s reacted by downgrading the holding company to ‘BBB-’.
- China puts environment first
The creation of a new environment ministry has raised the profile of water quality in China. It is a warning to those in breach of discharge regulations.
- Colombians tackle water sector corruption
The Colombian government is promising transparency in the way it conducts water tenders. It could prove vital in encouraging private sector investment.
- ERI flaunts its profits ahead of IPO
The energy recovery device maker is heading for NASDAQ. Its filings shed some interesting light on the company.
- Future Pipe plans $550m Dubai IPO
The Makhzoumi family is looking to cash in on the growth of the fibreglass pipe market by floating up to 35% of Future Pipe Industries. A DIFX listing should encourage international demand.
- Hyflux poised to steal Algerian crown jewels
A stunning low bid for the 500,000m3/d Mactaa desalination plant in Algeria has put Hyflux on the brink of big-time success. It should go a long way towards silencing Hyflux’s critics.
- Israel aims for 2 million m3/d of extra desalination capacity
Domestic supply shortages are forcing the authorities in Tel Aviv to adopt ever more desperate measures to try to deal with the crisis.
- Italy’s in-house awards raise EC concerns
A Brussels-led move could spell trouble for some of Italy’s ATOs.
- Italy’s water future in the balance
How should Italy best develop its water sector? Greater consolidation, a shift in investment, a new national watchdog? ANEA’s president Luciano Baggiani shares his thoughts with GWI.
- Madrid says no to Catalan transfer
Spanish Socialists have been accused of double standards over a new water transfer plan to address Barcelona’s growing crisis.
- Making the desert bloom
The Peruvian government is assessing a bill to encourage investors to farm desert land along the country’s coastal strip using desalinated seawater.
- New fund to boost Mexican WWTPs
A new wastewater treatment fund will help meet the aims of Mexico’s ambitious national water programme. Ronald Buchanan investigates.
- New institute lays water ghosts to rest
Iraq, Turkey and Syria have put their water differences behind them and established a joint water institute. It is a brave show of political solidarity.
- Oman releases desal forecast for 2014
The Oman Power and Water Procurement Company has outlined the sultanate’s water and electricity needs from now until 2014. A new IWPP at Barka or Sohar looks likely to meet demand.
- Onwards and upwards!
Alison Ireland says goodbye, and hands over to Emma Welsh.
- Osmoflo positions itself for growth
From its new HQ north of Adelaide, Australia’s home-grown desalination specialist is thinking big. It will have to fight for scarce human resources if it is to succeed.
- Qataris form JV for Ras Laffan C IWPP
Suez Energy International and Mitsui have formally signed the contract to develop the Ras Laffan C IWPP. The financing package still has to be finalised.
- Queensland sets out 50-year water vision
The QWC’s new draft strategy document weighs up supply and demand options over the next 50 years. It allows for a surprising return to high domestic water consumption.
- Roller-coaster ride for Basin Water
A poor set of results in March sent Basin Water’s stock into freefall. The share price recovered almost as dramatically after a new deal with Cal Water.
- Sabesp leads Brazilian charge in 2007
A 36% jump in net profits last year pushed Sabesp way ahead of the competition in the Brazilian water sector. It has more profit-boosting tricks up its sleeve.
- Saudi Arabia opens water reuse market
The National Water Company has been exploring ways of turning wastewater treatment into an income stream. CEO Loay Al-Musallam has come up with a novel proposal. It provides a rare opportunity for investors.
- Scotland opens up to competition
Businesses in Scotland now have the opportunity to choose who sends them their water bill. Licensees are lining up in the hope that they can make money from the proposition.
- Seven prequalify for New Cairo
The Egyptian authorities have moved a step closer to solving New Cairo’s wastewater treatment needs. A handful of consortia will now battle it out for the BOO package.
- Severn Trent fined £35.8m
Severn Trent has accepted the blame for providing false information to the regulator. It is keen to draw a line under previous transgressions.
- Shake-out time for contract operators
The US contract ops market seems to have settled into a kind of rhythm. The major players have accepted that achieving growth can be a frustratingly slow process.
- Siemens unveils the new-look USFilter
Siemens is re-aligning its water business to boost international growth. Joergen Ole Haslestad, CEO of the Industry Solutions division, spoke to GWI about his vision for the future.
- Suez Environment opens the kimono
The water and waste company is being spun off from the rest of Suez in May. Ahead of the transaction, it has published some interesting new information about the size and shape of its operations.
- Taking over Catalunya by stealth
Aqualia has made further inroads into Agbar’s home territory.
- Thames makes up with UK bond investors
The downsizing of Thames Water’s securitisation deal in August 2007 marked a low point in the company’s relations with UK institutional investors. A new £400m bond has repaired the damage.
- Treating wastewater – New Zealand style
New Zealand has set up a testing facility for onsite wastewater systems. It could have a far-reaching impact throughout the Austral-Pacific region.
- Turkey gears up for 2009 World Water Forum
Turkish authorities used World Water Day as an opportunity to boost exposure for next year’s World Water Forum.
- US contract ops slip backwards
A dip in design-build revenues in 2007 meant that the ‘big six’ firms posted lower combined turnover than in 2006. A healthy pipeline could reverse the trend in 2008.
- Veolia strengthens its Gulf foothold
Veolia Water’s newly established Abu Dhabi office underlines the French water major’s bullishness towards region. With a €3.4 billion backlog of water-related work in the Gulf, they are right to be optimistic.
Brief
- In Brief - Americas
* Layne Christensen’s shareholders were rejoicing in early April after the company posted a record set of results for the year ended 31 Jan 2008.
- In Brief - Asia
* SUEZ Environment and its long-term local partner, New World Services, will jointly acquire a 15% stake in Chongqing Water Group for approximately €140 million (RMB1.5 billion).
- In Brief - Europe
* BWT’s sales were up 9.8% last year to €397.5 million, with EBIT up 7.9% to €35.2 million and net income up 19.1% to €26.4 million.
- In Brief - Middle East
* Mekorot will purchase 10MW of electricity from a private power producer in an attempt to cut its energy costs.
