Global Water Intelligence Magazine

Gwi cover aug

Vol 15, Issue 8 (August 2014)

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In Global Water Intelligence this month

Need to know


Champagne at the agbar
  • Suez Environnement has agreed a deal to buy out the remaining 24.1% of...
  • The Water Europe division of Suez Environnement, of which Agbar constitutes around half, was the star performer when the French group unveiled its half-year results at the end of July. It generated EBITDA of...
Consolidate or die
  • Japanese engineering consultant Nippon Koei appears to have trumped Arcadis in its bid to buy Hyder Consulting. Despite the Hyder board agreeing to Arcadis’s £256.2 million offer on 31 July, a week later it had climbed into bed with Nippon Koei, which is offering...
  • Having recently shut down its bankrupt UK arm, Nippon Koei will gain immediate access to...
  • The failed bid raises the question of whether Arcadis will emerge as a bidder for Parsons Brinckerhoff...
The colour of money
  • The trend for raising green bonds to fund carbon-efficient infrastructure has gone viral, with total issuance tipped to exceeed $300 billion in...
  • California governor Jerry Brown signed legislation on 13 August to put a $7.5 billion water bond on the November ballot...
Chinese lister
  • Wastewater treatment plant developer Anhui Guozhen saw mammoth oversubscription levels for its IPO at the end of July, and may be justified in feeling peeved after the share price surged in the days that followed...
  • Meanwhile, China is waking up to the idea of paying a market value for water. Seven new pilots have been launched across the country...
Burmese boom
  • Myanmar’s government is cracking down on industrial effluent discharges as it rolls out a new Special Economic Zone and a raft of industrial parks...
Tariff wars
  • Residents in Ireland will start paying for water for the first time since 1997 after the country’s Commission for Energy Regulation published details of new tariff structures for metered and unmetered homes...
  • The Israelis, meanwhile, are looking for ways to drop the price of water for residential users. A new law allowing water companies to redistribute profits to their customers will do something to help...
  • While Ashdod struggles, another Israeli desal BOT nearby has become hot property. A consortium of institutional investors comprising the Israel Infrastructure Fund, Harel Insurance and Bank Leumi has signed a $124 million deal to...
Waste not, want not
  • Two major developments this month look set to give renewed momentum to the US wastewater treatment by-products business...
What’s in a name?
  • There was a new entry in the roster of ‘creative’ water company names this month, with the announcement that Ashland Water Technologies would henceforth be known as...
  • Harry Boot has moved on from his position as CEO of Aqualyng. The news is thought to be linked to the company’s desire to increase its exposure to...

Project Tracker

Charting the progress of over 900 Desal, Reuse and PPP water projects in the international water industry.

Download a sample
Project Tracker Database
(Subscription Requried)
PROJECT COUNTRY UPDATED STATUS TYPE
Portland O&M... United States 15 Oct 18 Representative... Utility
Forsyth O&M ... United States 15 Oct 18 Proposals are ... Utility
Mallorca bul... Spain 15 Oct 18 Bids are due i... WTP
Denia-Ondara... Spain 15 Oct 18 On 5th October... WWTP
Tanauan join... Philippines 15 Oct 18 Manila Water, ... Utility

Opinion

Christopher gasson The imperial engineers

Christopher Gasson looks at the logic behind the spate of mergers in the engineering sector and...

David lloyd owen Wessex Water trials wastewater metering

A circular economy? Wessex Water trials wastewater metering.

Wesstrickland The battle and the war over cranes

Texas has won a victory over environmental objections to its water rights distribution –...

Willy yeo Inventions and intentions

Willy Yeo untangles the web of deceit threatening China’s R&D sector.

Tom scotney A lesson from Dublin to Dubai

Reforming water tariffs can have a huge number of benefits, but selling the reform to the public...

Ian elkins 9 Gotta catch ‘em all!

Ian Elkins invites your suggestions on how to turn GWI’s project tracking service into...

News & Features

Hurricane brings on biogas bonanza

The resiliency plan put together in the wake of Hurricane Sandy is set to spur a biogas...

Pentair seeks buyer for piping branch

The downturn in the Australian market has hit piping sales and prompted Pentair to offload...

Searching for gold in Latin America

A new report from GWI outlines the opportunities for water companies in the growing Latin...

Industrial parks open up Myanmar

After decades of isolation, the country’s water sector is now opening up to outsiders,...

China dips a toe in water trading

A series of new pilots could point the way for water rights in China – and change the...

Agbar buyout marks Suez reshuffle

The deal to buy remaining shares in Agbar will see Suez consolidate its Spanish assets...

A watershed moment for green bonds

Environmentally conscious investors are lapping up major green bond issues. Could...

GWI Water Index

Global water stocks swim against the tide

The reasons behind a 2.9% fall in the GWI Global Water Index this month were almost as diverse as the constituent companies themselves. Meanwhile, the sector’s net liquidity was boosted by a series of fresh share issues.


Water on the markets this month:

GWI IndexValueChangeDate
Global Water154.45-0.30%10 Sep
Asian Water93.11-5.00%10 Sep
EMEA Water89.44-2.11%10 Sep
Americas Water259.762.41%10 Sep

Market Profile

Peering over the edge of the patent cliff

The expiration of patents on blockbuster drugs has hit income in the pharma sector. The need to reduce costs is creating a new market for lower-cost water solutions. Developing markets in China and India are leading the way.

Chart of the month

Procurement models for Asset Management Period Six (2015-20)

This month’s chart comes from our recent report Water in England and Wales to 2020: risks and opportunities in the AMP6 investment period.


Chart of the month

Americas

Hurricane’s wake brings on biogas bonanza

A resiliency package announced to protect wastewater infrastructure in New Jersey from the effects of storms like Hurricane Sandy could mark the start of a major biogas generation build-out in the state.

Windy City unlocks the value of wastewater

The owner of the world’s largest wastewater treatment plant has been given the go-ahead to explore new avenues of funding by directly marketing its waste products. Private finance will play a role as the utility explores its options.

Pentair seeks buyer for piping branch

Pentair has decided to offload its water transport platform after the downturn in the Australian mining market led to successive years of declining revenue. With the mining market stabilising, who might be interested in buying?

Searching for gold in Latin America

The Latin American mining industry is facing numerous water challenges as it attempts to manage risk in its operations. A new report from GWI investigates the opportunities for international water companies.


Asia pacific

IPO leaves Anhui Guozhen short of funds

Despite huge levels of interest from retail investors, the IPO of wastewater treatment plant developer Anhui Guozhen failed to raise the capital the company needs to fund its ambitious expansion plans.

Myanmar dangles industrial zone water carrot

After decades of isolation, the water and wastewater market in Myanmar is opening up to the outside world, driven by a burgeoning industrial sector. Can anyone other than the Japanese find a niche in this market?

China values water with rights trading push

Plans have been accelerated for a nationwide water rights trading system, signalling far-reaching consequences for industries in water-stressed provinces. GWI’s Yujia Shen investigates.

Europe

Procurement models for Asset Management Period Six (2015-20)

This month’s chart comes from our recent report Water in England and Wales to 2020: risks and opportunities in the AMP6 investment period.

Suez consolidates Agbar for future growth

The buyout of la Caixa’s remaining stake in Agbar by Suez Environnement has been a long time coming. Who got the better deal?

Catalunya mulls its water future

A new report suggests that an independent Catalunya would expand wastewater reuse. Relations with Madrid could deteriorate further.

Russian developer angles for water portfolio

The offer of long-term stable returns has lured a major real estate developer into the Russian water market through concessions in cities outside Moscow. Will the returns on offer justify the hard work required?

Looking for a stitch in time

Nine UK water companies are facing the threat of regulatory intervention unless they address financeability concerns. It seems Ofwat means business.

A watershed moment for green bonds

Corporations are increasingly funding carbon-efficient water projects through “green bonds”. Are “blue bonds” the next logical step?

Irish Water unveils tariff plans

Ireland has introduced domestic water charging for the first time since 1997. What are the implications for the private water sector in the republic?


Middle East and Africa

Post-election calm propels Egypt PPP project

The financial environment in the long-suffering country now looks more conducive to the involvement of private finance than it has for a long time. The involvement of international development finance will still be key.

Jordan taps aquifer to create breathing space

The flood of refugees has pushed water resources in the country to breaking point, despite the successful rollout of the Disi-Amman conveyor project. More groundwater will be needed until desal can come to the rescue.

Israelis look for new route to lower water tariffs

The Israeli government is changing the way its regional water companies manage their money in a bid to lower the consumer cost of water. A more drastic reshuffle of the companies could still be on the cards.

News in brief

AMERICAS WATER IN BRIEF

Apollo Global Management reduced its stake in Rexnord from 24.4% to 14.5% on 11 August by selling a further 10 million shares, which it transferred to sole underwriter Deutsche Bank at $26.45 each.

ASIA WATER IN BRIEF

UK-based design and engineering firm Hyder Consulting has accepted a surprise takeover offer from Japanese consultancy Nippon Koei, which looks to have trumped an earlier offer from Arcadis.

EUROPE WATER IN BRIEF

Degrémont has further increased its exposure to the industrial water treatment market by taking a stake in Swiss evaporation and crystallisation specialist Evatherm.

MIDDLE EAST WATER IN BRIEF

Construction on the Ashdod desalination plant – already delayed from its original target completion date of September 2013 – has been further delayed after developer Sadyt pulled staff off the site following rocket attacks from Gaza.