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Fomento de Construcciones Y Contratas SA (FCC) is the result of the 1992 merger between Construcciones Y Contratas SA and Fomento de Obras y Construcciones SA (Focsa). Focsa was a Spanish construction company which had traditionally dominated Spain’s urban waste collection and street cleaning sectors. Focsa was founded in 1900 and gained the Barcelona sewerage contract in 1911. FCC’s water and sewerage operations are the second largest in Spain after Agbar.

 

In 1999, Alicia Koplowitz sold her 28% stake in FCC to VE. While the original aim was for VE to take control of FCC, the company sold this stake back to Ms Koplowitz for EUR916million in July 2004. The stake sale does not affect the Proactiva joint venture. However, since 2004, FCC has sought new contracts in Latin America on its own, as demonstrated by the Queretaro contract gain in Mexico in 2007.  

 

FOCSA  purchased Seragua, a water management company in 1988 and since 2002, all of FCC’s water and wastewater service activities have been grouped under Aqualia. During 2006 and 2007, FCC gained three major water contracts in Portugal, Italy and Mexico as well as acquiring one of the leading regional utilities in the Czech Republic. Further contract gains were made in Central & Eastern Europe, Portugal and Mexico in 2008 and in Egypt and Mexico in 2009. Aqualia aims to generate revenues of EUR1,618million (pessimistic scenario) to EUR2,223million (optimistic scenario) by 2020.

 

In 2009, Aqualia developed Aqualia New Europe a 51:49 joint venture with the European Bank of Reconstruction and Development (EBRD) to seek new concession contracts in Central & Eastern Europe. It has a total capital of EUR163million.

 

Fomento de Construcciones Y Contratas SA, profit and loss account

 

Y/E 31/12 (EURmillion)

2005

2006

2007

2008

2009

Aqualia – Spain

569

674

715

712

711

Aqualia – International

0

40

74

134

161

Turnover – Aqualia

569

714

790

845

872

Total turnover

7,090

9,481

13,423

14,016

12,670

Operating profit

656

881

1,259

896

731

Pre-tax profit

696

881

1,252

520

450

Net attributable profit

421

536

738

337

307

 

89.9% of Aqualia’s 2008 revenues were in water and wastewater services, 7.6% for design and build projects and 2.3% for industrial water services. At the end of 2008, Aqualia had an order backlog of EUR11,912million, rising to EUR12,208million in 2009, 30% outside Spain.

 

Aqualia – revenue breakdown for 2009

 

Revenues by client

%

Revenues by service

%

Cities

67.7%

Water supply

75.7%

Private clients (industrial, etc)

21.5%

Other

19.0%

Other public authorities

10.2%

Wastewater treatment

5.1%

Autonomous communities

0.6%

Sewerage

0.2%

 

Aqualia  - Spanish revenues in 2009

 

Region

% share

Madrid

18.7%

Andalucía

17.5%

Castilla La Mancha

7.4%

Canaries

7.3%

Catalonia

6.0%

Extremadura

4.6%

Murcia

1.5%

Region

% share

Rest of Spain

16.5%

 

Aqualia - International revenues in 2009

 

Country

% share

Czech Republic

9.1%

Algeria

4.7%

Italy

3.3%

Portugal

0.7%

Mexico

0.6%

China

0.1%

Ecuador

0.0%

 

Aqualia currently serves 12.93million people in Spain: it covers 800 towns and cities and in addition provides sewer cleaning and maintenance services for 6.6million people in 72 cities and towns.

 

Aqualia, people served in Spain by region

 

Region

People

Catalonia & Balearics

1,350,000

Basque Country, Galicia & NE Spain

3,800,000

Extremadura

530,000

Central & Eastern Spain & the Canary Isles

4,850,000

Southern Spain

2,400,000

Spain - total

12,930,000

 

FCC – water received and wastewater treated in 2008

 

Water (Million m3)

Aqualia

Proactiva

Total

Source

 

 

 

Groundwater

153.68

112.55

266.22

Surface water

513.19

171.09

684.29

Desalination

3.87

0.00

3.87

Other

20.53

0.00

20.53

Total

691.27

284.64

975.92

 

 

 

 

Wastewater (Million m3)

Aqualia

Proactiva

Total

Total

496.87

8.11

504.97

 

FCC, number of people supplied in Spain and internationally

 

Country

Water

Sewerage

Total

Spain

7,200,000

9,500,000

13,000,000

Italy

275,000

275,000

275,000

Portugal

294,000

294,000

294,000

Czech Republic

1,070,000

870,000

1,070,000

Venezuela *

552,000

0

552,000

Colombia *

423,000

0

423,000

Argentina *

200,000

0

200,000

Mexico *

6,030,000

0

6,030,000

Ecuador

2,500,000

1,000,000

2,500,000

Egypt

0

1,000,000

1,000,000

China

0

2,000,000

2,000,000

Total outside Spain

11,344,000

5,439,000

14,344,000

Total

18,544,000

14,939,000

27,344,000

 

* Includes Proactiva

 

The Proactiva contracts are examined in the VE entry.

 

Czech Republic

 

FCC acquired SmVaK from Penta Finance in 2006 for EUR248million. SmVaK’s 2006 revenues were EUR57million. Penta Finance acquired AWG’s 54.30% holding in Severomoravské vodovody a kanalizace Ostrava a.s. (SmVaK) in February 2004 for CZK1.75billion (GBP38million). AWG acquired this stake for GBP19million in 1999. In April 2004 Penta purchased a further 44.07% interest from Suez. 1.5% of the shares are held by Moravian municipalities. In August 2005, the company was given a Baa- short term international debt rating by CRA, the first time SmVaK has been rated. In June 2005 the company issued CZK 2billion in bonds in order to retire earlier debts, with CZK 0.25billion available for acquisitions in Moravia, Poland and Slovakia. 


SmVaK, profit and loss account

 

Y/E 31/12 (Kcsmillion)

2006

2007

2008

2009

Water – in-house provision (million m3)

49.30

46.71

45.38

44.00

Water – third party sales (million m3)

26.92

25.90

24.79

24.36

Water – people served

841,624

814,109

815,698

832,959

Sewerage – people served

507,203

508,965

515,564

531,770

Sewage treatment – people served

502,070

505,634

505,429

529,768

Sewerage – municipalities served

70

72

73

77

Water supply revenues

N/A

1,077

1,106

N/A

Wastewater treatment revenues

N/A

625

659

N/A

Revenues

1,734

1,831

1,955

2,038

Pre-tax profits

319

382

468

559

Net profits

246

389

371

452

 

SmVaK holds the water and sewerage management contract for the Severomoravske region, including serving the Frýdek – Místek, Karviná, Nový Jicín, and Opava regions, along with the cities of Ostrava, Hlucín, Studénka, and for other municipalities of Moravia and Silesia region; and under a contract, it also supplies water to near-border areas of Poland. It owns 26 water treatment plants and operates 65 sewage treatment plants (7 primary & 58 secondary). Currently, 1.07million of the region’s 1.20million inhabitants are connected to the mains water supply and 0.87million to the sewerage network. SmVaK is the second largest water and wastewater entity in the Czech market.

 

Portugal

 

2008

Elvas

30 year concession

23,000 water & wastewater

 

This EUR93million contract includes EUR7million in capital spending.

 

2008

Campo Major

30 year concession

51,000 water & wastewater

 

2006

Leziria del Tajo

40 year concession

220,000 water & wastewater

 

This contract involves EUR200million in capital spending (EUR53million from public funding) and will generate total revenues of EUR1,500million. It is being operated with Lena of Portugal and covers the cities of Almeirim, Alpiarça, Benavente, Cartaxo, Chamusca, Coruche, Golega, Salvaterra de Magos and Santarém.

 

Italy

 

2006

Caltanissetta

30 year concession

275,000 water & wastewater

 

The water and wastewater management contract for the Caltanissetta province in Sicily involves capital spending of EUR247million (EUR85million from public funding) and is expected to generate revenues of EUR1.5billion. Caltanissetta's two largest towns are Gela (72,000) and Caltanissetta (61,000). Aqualia is the majority participant (51%), the other members being the Italian firms Galva (47%), CCC (1%), Gate (0.5%) and AIEM (0.5%).

 

Egypt

 

2009

Cairo

20 year DBFO

1,000,000 sewage treatment

 

A 50/50 joint venture with Orascom Construction Industries of Egypt gained the concession which was tendered by the World Bank’s IFC. The tertiary facility will handle 250,000m3 of wastewater a day.

 

Mexico

 

2009

El Realito

25 year DBFO

850,000 water

 

A EUR750million project, which will start in January 2010 and awarded to FCC and Mexico’s ICA.

 

2007

Queretaro

20 year concession

700,000 water

 

A EUR200million project that will deliver and treat bulk water at 130,000m3 per day to the greater Queretaro area, generating revenues of EUR330million over the operational period. Aqualia holds 26% of the concession company.

 

Latin America - Proactiva

 

Turnover for Proactiva Medio Ambiente was EUR443million in 2000, with net profits of EUR7.3million. Revenues have been impacted by currency weakness and fell to EUR145million in 2002. This has been further reduced to EUR34million in 2003 due to the non-renewal of a number of contracts, most notably for Puerto Rico. Revenues have recovered since, rising to EUR403million in 2009 with an EBITDA of EUR83million.

 

Argentina

 

Proactiva Medio Ambiente was awarded the Catamarca contract in April 2000 for water supply management for the departments (parts of the town) of Capital, Vallejo Viejo and Fray Mamerto Esquiú in the province of Catamarca, in the northwest part of the country. It was rescinded in 2006. 

 

Venezuela

 

1997

Monagas

30 year concession

552,000 water

 

Proactiva Medio Ambiente Venezuela gained the Hidrocapital concession for the water supply and sewerage for the north east sector of Caracas in July 2002. The service area has 650,000 inhabitants. Forecast revenue is USD2million per year.

 

Colombia

 

1996

Tunja

20 year concession

151,000 water & wastewater

2000

Monteria

20 year concession

329,000 water & wastewater

 

The Monteria concession was gained by Proactiva Medio Ambiente in December 1999 and will generate COP29billion in revenues, with COP10.5billion in investments over the contract life. It serves 329,000 with water and 124,000 with sewerage. The Tunja concession serves 151,000 with water and 148,000 with sewerage.

 

Mexico

 

VE’s JV company Omsa, operates four contracts serving a total of 6.0million people. Since 1993, VE’s stake in Omsa has increased from 33% to 38% in 1996, to 45% in 1997 and to 50% in 1998. ICA, VE’s partner, is a Mexican civil engineering and construction company. Caasa serves 506,000 people in the city and more than 300,000 in the surrounding areas; 851,000 with water and 843,000 with sewerage. The 30 year concession was granted in October 1993.

 

Sapsa (Mexico City)

2.43million

Water management services (1993-2009)

Caasa (Aguascalientes)

0.85million

Water and waste water concession

Puebla

1.20million

Water and waste water concession

Acapulco

1.50million

Water and waste water concession

 

Ecuador

 

2001

Guayaquil

30 year concession

2.5million water & wastewater

 

International Water (Edison / Bechtel) sold its 90% holding in International Water Services (Guayaquil) Interagua C.Ltda  (ECAPAG) to Proactiva in December 2008. Edison wrote down EUR12million on the sale. The principal targets in 2001 were to reduce non revenue water from 70% to 30% and to connect 300,000 people in informal settlements, especially in Isla Trinitaria, where by 2004 piped water was made available for a seventh of the cost of the water vendors. 

 

International Water Services (Guayaquil), contribution to Edison’s profit and loss account

 

EURmillion

2004

2005

2006

2007

Revenues

27

31

34

29

EBITDA

4

8

10

7

Capital spending

N/A

N/A

8

13

 

 

During the first five years of the concession, Interagua invested USD50million in extending services to the city, connecting 40,000 new clients to the city’s mains water and 20,000 to sewerage systems. Between 2006 and 2011, the company will invest USD250million in new infrastructure, with the aim of providing water services to 95% of the city’s residents and sewerage for 90%. A cross subsidy rate scheme ensures that industrial clients subsidise in part the water that is used by residents.

 

China

 

2005

Bengbu

25 year BOT

2million wastewater

 

This is FCC’s first international contract in Asia and its first since ending its relationship with Veolia. The contract is being operated as a joint venture between FCC’s Aqualia and BCCA of China. Bengbu is in Anhui Province and has a population of some 2million people. EUR40million is to be spent upgrading and expanding the city’s wastewater treatment works and the contract will generate revenues of EUR500million. Bengbu Treatment Plant Number 1 (100,000m3 per day) will be managed for 25 years and expanded to 200,000m3 per day and a second plant (Yantaizi, Treatment Plant Number 2) with a capacity of 200,000m3 per day will be built and managed. FCC’s SPA has been involved in providing equipment for six WWTW projects since 1999, including hardware for the first phase of Bengbu Number 1.

 

Contact Details

Name:

Fomento de Construcciones Y Contratas SA

Address:

 

Federico Salmón, 13,

28016 Madrid, Spain

Tel:

+(34) 91 35 95 400

Fax:

+(34) 91 34 54 923

Web:

www.fcc.es


Baldomero Falcones Jaquotot (Chairman and Managing Director)

José Trueba (CFO)

Migual Jurado (Director, Aqualia)