Vol 14, Issue 5 (May 2013)
Need to know
Having spent some time telling the world that it would sell its water division as a single package, Siemens has conceded that Memcor, the Australian low-pressure membrane manufacturer, will be sold off separately.
The policy thrust in the Nigerian infrastructure sector is now heavily geared towards PPPs, following a presidential water summit earlier this year.
- MINJUR-Y TIME
IVRCL is looking to pull out of the Chennai Minjur desalination project in Tamil Nadu which it developed together with Abengoa, as it attempts to restore its balance sheet and re-focus on its EPC business.
- SEE YOU LATER, REGULATOR
Brazilian concessionaire Sabesp is reeling from the decision by São Paulo regulator ARSESP to award it a razor-thin 2.35% tariff rise, whilst demanding that the company cut BRL600 million ($300 million) from its annual opex bill. Despite the fact that the company has appealed against the decision, investors have been leaving the stock in droves.
- Are we hooked on oil?
Christopher Gasson examines the extent to which the water sector has become dependent on high oil prices for future growth.
- David Lloyd Owen - A morale victory? Water for the people and serving them are not the same.
A morale victory? Water for the people and serving them are not the same.
- CHART OF THE MONTH - Estimated operating expenditure by industrial water users
This month’s chart comes from our Global Water Market 2014 report.
- Accolades and oranges in Seville
The Global Water Awards recognise what senior executives across the international water industry acknowledge as the most important achievements of 2012.
- Siemens re-thinks its UF membrane strategy
Siemens Water Technologies will give up exclusive rights to the production of Memcor membranes, in preparation for what CEO Lukas Loeffler predicts will be an end to vertical integration in the low-pressure membrane market.
- Pall takes a long knife to its water division
The departure of two of Pall Corporation’s longest-serving water executives raises questions about the future direction of the group’s water division. Its relationship with Asahi has come under particular scrutiny.
- A commoditised future for UF membranes?
The UF membrane market is maturing. Will it ever reach the level of commoditisation enjoyed by RO?
- Lagos promotes two-tier water PPP initiative
Nigeria’s most populous state has stepped up efforts to boost private sector participation in its water supply infrastructure. Group managing director Shayo Holloway outlines his plans to GWI.
- Mostaganem desal operators face ultimatum
The private sector stakeholders in Algeria’s Mostaganem desalination project face losing their contract if they are not able to fix an intake problem by the end of May.
- Managing water and expectations in Algeria
The re-tendering of the failed Annaba contract shows the Algerian authorities are serious about improving the performance of urban water utilities. Rolling out the model to other cities is still some way off.
- Tunisia seeks to broaden PSP in wastewater
Inherent inefficiencies in the public sector have convinced the Tunisian authorities to boost the role of the private sector in operating wastewater infrastructure. What is up for grabs?
- Drought forecast may affect Israeli desal roll-out
Predictions of a megadrought in Israel may force a re-think of the pace at which the Water Authority procures new desalination infrastructure.
- Oman looks for quick-fix desal solutions
The latest rising demand projections from the country’s major supplier of desalinated water show that existing plants need to be expanded to satisfy demand until larger plants come online.
- Bahrain mulling FO role for desal rehab
The drive towards modernity is creating opportunities for new desalination technology in the kingdom.
- Muscat sets sights on TSE business income
Oman’s main wastewater treatment body is in the middle of a major expansion plan around the capital city. It is now turning its eyes towards finding ways to make wastewater treatment pay.
- Masdar bids round out successful year for ILF
The serious work of assessment has started on Abu Dhabi’s groundbreaking new energy desalination programme. For the consultant involved, it marks the culmination of a year of successes.
- Mekorot in line for $16m Trinidad payout
An arbitration process has put the seal on a two-year dispute following a failed contract in the Caribbean country. The company’s investment plans are now turning towards domestic needs.
- Plundering the market for liquid assets
The ownership model for UK regulated water companies has found new ways to evolve since the leveraged buyouts of the pre-financial crisis era. What are the trends?
- Severn Trent holds out for improved offer
Will the board of Severn Trent end up kicking itself after rejecting an £8.8 billion takeover bid earlier this month?
- Kelda shareholder shuffle to test investor appetite
The sale of 30% of Kelda’s equity will represent the largest deal in the UK water sector since 2011. Who will buy?
- KKR dives into European water
An opportunistic swoop on South Staffordshire will round out the private equity firm’s global water portfolio. How will it manage its newest asset?
- RKS signs breakthrough Russian water concession
A new 40-year water concession in Perm’ will break new ground in the Russian water sector. What are the barriers to rolling the model out to other cities?
- Catalunya evaluates wastewater tendering plan
Private sector involvement in Catalunya’s wastewater treatment infrastructure could increase dramatically. The move would face strong opposition from municipal leaders.
- Sabesp shares begin to lose their shine
The apparent hostility of the regulatory environment in the Brazilian state of São Paulo is driving investors away from the stock. How much worse can the news get?
- Breathing with the regulator
The recent divergence in the share prices of Sabesp and American Water underlines the different regulatory environments in which they operate.
- Ecuador to fast-track water quality plan
The launch of a new national water plan will involve a large-scale build-out of wastewater treatment infrastructure. A number of municipalities are exploring the BOT procurement model.
- IVRCL looks to exit Chennai desal project
Financial constraints have forced the Indian project developer to re-evaluate its BOT portfolio. Selling its stake in the Minjur desalination plant may not be as easy as it seems.
- Indonesia opens up to capital-light PPPs
A contract to operate greenfield bulk water infrastructure in southern Sumatra marks a new direction for Indonesian water PPPs. Will the concept catch on?
- BEWG outlines global expansion plans
Li Haifeng, executive director at Beijing Enterprises Water Group, explains to GWI’s Olivia Jensen how internationalisation is a core part of the company’s growth strategy.
- BEWG bond draws $4bn demand
The Chinese project developer’s inaugural US dollar bond issue shows it has the fire-power to support its international expansion plans.
- Chinese navigate first round of desalination pilots
China’s domestic desalination offensive got underway last month with the selection of eight pilot schemes.
- Oz water sector responds to call for innovation
The Australian National Water Commission has called on the country’s water industry to influence policy through greater innovation and collaboration. The response will build on an already impressive legacy.
- MIDDLE EAST WATER IN BRIEF
The Gabonese Ministry of Oil, Energy and Hydraulic Resources has awarded Acciona Agua a €50 million contract to expand the country’s largest water treatment plant.
- AMERICAS WATER IN BRIEF
In the face of an ongoing and catastrophic drought, the Texas state legislature has effectively killed a $2 billion water infrastructure bill after a procedural motion on 29 April delayed the bill’s consideration.
- ASIA WATER IN BRIEF
HanKore Environment revealed on 15 May that it is in preliminary discussions with third parties over the potential sale of its 1.4 million m3/d portfolio of Chinese water and wastewater BOTs.
- Solar, so good for desalination
Tom Scotney asks whether the switch to renewable power will break the hold of power firms over the desal market.
- America’s municipal midlife crisis
Discretionary US water infrastructure spending cannot fall for ever. The antidote may involve a stiff dose of reality for citizens, argues Debra Coy.
- The new Myanmar-ket place
Charles Bodhi finds evidence of unripe fruit as he goes browsing for business in Myanmar.
GWI Water Index
- The end of the Brazilian honeymoon
A steep decline in the market capitalisation of listed Brazilian water stocks contributed to a lacklustre performance for the GWI Water Index last month. Signs of a recovery in the US municipal market were scant compensation.