Vol 9, Issue 8 (August 2008)
Need to know
- BOTS AND TOTS
* At the beano to celebrate his company’s stock market debut, Suez Environnement CEO Jean-Louis Chaussade was bemoaning the lack of build operate-transfer projects in the water sector over the past two years.
- FRENCH TWINS
* The first thing to happen since we last published was the long-awaited debut of Suez Environnement as a separately quoted stock on the Paris bourse (see story p8).
- MARKET OPTIMISTS
* The GWI World Water Index recovered half of the ground it lost last month, rising by 5.8% (see story p10).
- PIPING UP
* Israel’s on-off plan to import water from Turkey took a step forward at the end of July, with Israel’s Infrastructure Minister Benjamin Ben-Eliezer provisionally signing up to buy 2.1 million m3/d of water from Turkey at a meeting in Ankara.
- A whole heap of beans
Christopher Gasson tries to make sense of AECOM’s decision to cut Earth Tech back to its roots.
- Desalination market grows six-fold in 12 years - CHART
This month’s chart comes from the new edition of the IDA Desalination Yearbook 2008/9.
- Insight - David Lloyd Owen
It’s August, and when there’s (officially) nothing to say, it is high time to revisit some unsayables (see my May 2008 column), no matter how tasteless they may at first appear.
- AdP sells Aquapor for €63m
The privatisation of Aquapor raised more money than expected. The new owners are banking on future tariff increases to justify the price they paid.
- ADWEA and SembCorp explore F1 expansion
The Fujairah 1 developers have commissioned a study into expanding RO capacity at the plant. The extra water would serve the northern emirates as well as Abu Dhabi.
- AECOM sells Earth Tech’s water jewels
Tyco’s sale of Earth Tech was completed at the end of July. New owner AECOM has a very definite idea of which assets it wants to keep.
- Bangalore reveals its water reuse ambitions
The Bangalore authorities have concluded that the only way to address the city’s water demand shortfall is to implement large-scale water reuse. It will not put an end to local groundwater exploitation.
- Beijing Water’s Olympic victory
Beijing has done an impressive job of getting its water infrastructure ready for the Olympics. Much of the effort is home-grown, as Kathy Liu finds out.
- Biwater leaves Tanzania empty-handed
The decision not to award damages to Biwater after an unlawful expropriation of assets sends a negative message to the international investment community. CEO Larry Magor talks to GWI about the outcome.
- “Blue Book” predicts €67bn of investment
The Italian water sector will require nearly €67 billion of investment over the next 30 years, according to a new study. Most of it will have to come from the private sector.
- Cheap Sohar IPO blows out
The sale of a 35% stake in the Sohar Power Company drew demand of USD735 million. The deal values the company’s equity at a mere USD98.6 million.
- GdF Suez and Doosan clinch Shuweihat 2
The Belgian-Korean consortium has won the latest IWPP project in Abu Dhabi. Next up is Shuweihat 3, which could move forward without a tender.
- Great Lakes Compact takes a leap forward
The rapid progress of the Great Lakes Compact through the US Senate reflects its bi-partisan support. It will provide an important blueprint for the revised Colorado River Compact, argues Kathy Shandling.
- GWI Water Index
The GWI Water Index rose by 5.8% last month, outperforming the MSCI World Index, which was effectively flat over the same period.
- H2Oz – Australia’s answer to the water skills shortage
A new taskforce will tackle the chronic shortage of skills facing Australia’s water industry.
- Haldia sets new precedent for Indian PPPs
The signing of the water concession agreement in Haldia is a major step forward in the development of the Indian PPP market. It is the first time an Indian utility has handed so much responsibility over to the private sector.
- Making savings on paper
German paper companies are anticipating changes in legislation by installing wastewater recycling systems. There is scope for a large-scale roll-out.
- Managing the best job on earth
Suez Environnement CEO Jean-Louis Chaussade has the task of guiding the newly listed water and waste specialistto greatness. He spoke to GWI about his ambitions for the company over the next three years.
- Mekorot bonds in the pipeline
The Israeli bulk water supplier intends to finance its next pipeline project entirely through bond issues. It is a race against time.
- Mexico to offer batch of new wastewater BOTs
Conagua is looking for private investment to fund 3.5 million m3/d of new wastewater treatment capacity. Leticia Lozano reports.
- Northern Cyprus eyes USD350m underwater pipeline
The fields of Northern Cyprus are set to bloom again if a long-promised water pipeline from mainland Turkey goes ahead. It will be accompanied by a new treatment plant.
- Ofwat’s hard SELL on climate change
In a new policy document, Ofwat summarises the tough choices faced by water companies when tackling climate change. It has also introduced the concept of a “sustainable economic level of leakage” (SELL).
- Pennichuck to fight latest NHPUC ruling
The City of Nashua’s bid to take the water assets of Pennichuck Corp. by eminent domain is far from over. CEO Duane Montopoli plans to fight the latest ruling by the NHPUC, which values his company at USD203 million.
- Revised bids too close to call at Hassyan
Fisia and Doosan are neck and neck after the retendering of DEWA’s P1 Station at Hassyan. Roll on October.
- Spain’s new water boss
After three months of waiting, Spain finally has a new director-general for water. Marta Moren will have to work hard to make up for lost time.
- Spanish wastewater funding falters
Spain’s wastewater plan is running into trouble as the country’s economy flounders. It has brought the role of private sector funding to the fore.
- Suez and Mahindra eye Indian concessions
Suez Environnement is looking to get a share of the nascent Indian water concessions market. Despite limited opportunities, CEO Jean-Louis Chaussade is quietly confident.
- Summer holiday blues
Emma Welsh returns from a rainy break in Devon, and extols the virtues of GWI’s new Australia report.
- Tariff hikes check Spanish water consumption
Tariff rises helped drive a significant reduction in Spain’s domestic water consumption in 2006, according to new data. There is still room for improvement.
- Two new Omani IWPPs in the offing
The Oman Power & Water Procurement Company has begun the hunt for consultants to advise on two new independent power and water projects.
- UK WASCs to invest £26 billion in AMP5
The UK water and sewerage companies have revealed their future investment plans. Some of the most ambitious programmes come from privately held operators.
- USD8bn infrastructure corridor moves ahead
Israel seems to have accepted that importing water from Turkey makes sense. Is it effectively an admission that Israel’s desalination programme is failing?
- Veolia and Besix secure Abu Dhabi WWTPs
Veolia and Besix have inked a €525 million wastewater agreement in the UAE. The revised tariff reflects a doubling of capacity at the smaller of the two plants.
- In Brief - America
* American Water and Aqua America, the two largest quoted US water utilities, revealed their second quarter results in early August.
- In Brief - Asia
* Ranhill Utilities Berhad (RUB) shares will be de-listed from the Malaysian Stock Exchange following the closing of the offer by Lambang Optima Sdn Bhd (LOSB) and 70% RUB shareholder Ranhill Berhad to purchase RUB’s remaining listed shares.
- In Brief - Europe
* A new water fund was listed on the LSE on 24 July, raising €60 million.
- In Brief - Middle East
* TAQA has continued its funding spree, following the AED4.15 billion 3-month mandatory convertible launched in June.
- A biography of biogas
As energy prices rise, so does the status of a humble gas. Gord Cope finds that in the current environment, biogas comes up smelling of roses.