Global Water Intelligence Magazine

Dec17 cover

Vol 18, Issue 12 (December 2017)

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In Global Water Intelligence this month


Need to know


TECH STORIES
  • Xylem has spent $400 million on Pure Technologies, the Canadian pipeline analytics business. It is the first time the US water technology group has taken an interest in networks, and it may be the beginning of a much larger...
  • Evoqua is also in the market for new technologies in the wake of its IPO (see interview with CEO Ron Keating...
  • Oasys, the forward osmosis specialist which once looked poised to clean up in the industrial brine concentration market, has halted commercial operations and put its patents up for sale. It is the result of a horrible mess in...
  • Oasys’s difficulties in China come in the context of an unexpected softening in demand for zero liquid discharge technologies. It seems that...
  • GrahamTek, the South African desalination design engineer, has secured a $250 million financing commitment to enable it to re-enter the market for systems supply. The company lost control of its...
CONSUMER PROTECTION
  • The UK’s Ofwat has proposed a 2.4% weighted average cost of capital for the next asset management period (2020-2025). It is 1.3% lower than...
  • Chile’s presidential election is turning out to be an important one for its investor-owned water companies. Centre-left candidate Alejandro Guillier wants to...
  • Abengoa’s Nungua desalination project is in deep difficulty, with off-taker Ghana Water struggling to meet the payments under a dollar-denominated take-or-pay contract. The price Ghana Water pays for the desalted water is...
  • Metito has finally closed the $60.8 million financing of its Rwanda bulk water supply project, after two and a half years of negotiation. It wasn’t helped by the arrest of...
  • Shares in Tallinna Vesi fell by 20% this month after Estonia’s supreme court ruled that it had to change its tariff structure. The company, which was once considered...
NEW MONEY
  • EagleTree Capital has taken a majority stake in Texas-based mobile water and wastewater treatment specialist WaterFleet. The company specialises in...
  • Ecological Service Partners has secured a $250 million equity commitment to help it grow its business. The company makes its money from...
  • Brazil’s Iguá Saneamento is looking to invest BRL2.2 billion ($923 million) in water and sewerage services over the next seven years. The company used to...
CORPORATES
  • Suez held an investor day earlier this month to introduce Suez Water Technologies & Solutions, the newly formed subsidiary which incorporates its GE Water acquisition. Despite promising to increase...
  • Veolia issued a €500 million 3-year bond with a negative yield last month. It is the first time that investors have been prepared to take a capital loss to hold a BBB-rated bond: a sure sign that they are no longer...
  • Severn Trent Services, the US-based contract operations business which was sold by its UK parent earlier this year, has been rebranded as Inframark. CEO Stephane Bouvier tells GWI...
OPPORTUNITIES
  • The regional government of Castilla-La Mancha in Spain is set to tender ten 25-year concessions next summer, covering more than...
  • Morocco is pushing ahead with a major new privately financed desalination plant...
  • The Sharjah Electricity and Water Authority has proposed a private finance model to expand its 91,000m3/d Hamriyah plant to a possible...
  • The bankruptcy of M&G Chemicals has created an intriguing opportunity for intrepid water investors. The company owns an 8.8MGD (33,300m3/d) desal plant in...
  • Sri Lanka’s National Water Supply and Drainage Board is on the cusp of approving shortlisted bidders for the country’s first large-scale desalination plant and its first...

Project Tracker

Project Tracker

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

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Latest Tracker Updates

Project Tracker Database
(Subscription Requried)
PROJECT COUNTRY UPDATED STATUS TYPE
Coachella Va... United States 21 Feb 18 Bench-scale pi... Reuse
Baggao water... Philippines 20 Feb 18 Tubig Pilipina... Utility
Weliwita bul... Sri Lanka 20 Feb 18 Eight out of t... WTP
Guadarrama B... Spain 20 Feb 18 On 19 February... WWTP
Hambantota Sri Lanka 20 Feb 18 Just one compa... Desal

What's making the news in global water projects this month

Project tracker

Desal P3s take shape in California; Sharjah eyes desal BOT; JEA privatisation back on the cards; Sorting fictional assets from fact; Sri Lanka’s PPP push; Biosolids pipeline crystallises out; all the latest project news from around the world.

Intelligence


GWI Water Index

Index up, despite UK slump

A sell-off in UK water stocks on fears of a harsh regulatory settlement failed to send the index into negative territory. Meanwhile, the liquidity of two stocks is set to be boosted.


Water on the markets this month:

GWI IndexValueChangeDate
Global Water147.74-9.20%10 Feb
Asian Water103.07-13.28%10 Feb
EMEA Water83.85-12.40%10 Feb
Americas Water234.36-5.84%10 Feb

The List

Twenty scandals that rocked the water world

The world of water has seen its share of scandals, and dealt with the fallout of political and business misbehaviour. GWI looks at twenty occasions where the great and seemingly good of the water sector fell from grace.


 

Christopher gasson What is going on in the world?

Christopher Gasson looks what will shape water in 2018.


Chart of the month

Chart of the Month: Reality Bites Desal Forecast

This month’s chart shows the difference that a decade has made on the outlook for the desalination market.


Chart of the month

 

Water Leaders

Introducing the Leading Utilities of the World

Last month the Global Water Leaders’ Group launched a new initiative to highlight the achievements of the top performing utilities in the world. It has ambitions to change the way the water industry works.

Being the best in the world is not our job

Singapore PUB’s chief executive Peter Ng has another goal in mind: being the best for Singapore. It means pursuing impossible performance targets, pushing the boundaries of technology, and still worrying about how to win the trust of customers.

 

 

 

Chief Technology Officer

User Perspectives

Texas Instruments chips away at water consumption with reuse strategy

American semiconductor firm Texas Instruments is working to reduce its reliance on external water sources as it braces for an increase in water scarcity events across the globe. GWI finds out what the possibilities for water security are.

Smart Water Watch

Itron sets the digital standard with Silver Spring acquisition

After closing the $830 million purchase of Silver Spring Networks, metering analytics giant Itron is looking to create a standardised IoT network to develop its water business. By doing so it will expose itself to greater competition.

CTO Outlook

Pushing the chemicals technology envelope

Water treatment chemicals specialist Solenis is preparing to roll out its predictive analytics solution as the next step in its digital strategy. CTO Tim Wood tells GWI about the varying dynamics around innovation between the municipal and industrial sectors.

See the latest technology updates on the Chief Technology Officer Homepage...

Americas

Xylem targets smart water consulting with Pure deal

The $400m purchase of Pure Technologies is more than just another smart water play. The company’s consulting capabilities will provide Xylem with a key competitive advantage.

Developers take stock as M&G prepares to divest its seawater desal plant in Texas

The Italian plastics firm is divesting the US assets of its bankrupt chemicals business, which includes a seawater desalination facility in Corpus Christi. The sale could prove a timely opportunity for the build-out of a merchant desalination facility on the Texas coast.

Evoqua IPO opens up a world of opportunity

CEO Ron Keating has to maintain the momentum behind the company’s share price if he and his private equity backers are to realise the paper gains they made on Evoqua’s introduction to the New York Stock Exchange. Here he tells GWI how he intends to achieve that.

Why did we get Evoqua so wrong?

Back in 2013, GWI thought AEA had overpaid for Siemens Water Technologies.

Two Rivers plans to spin out its water assets

The Pink Sheets-quoted company has big ambitions for its water assets, but is starved of capital. How is it planning to move forward?

WaterFleet targets growth under new owner

By focusing on mobile water treatment solutions for workers at remote camps, WaterFleet has carved out a unique niche in the oilfield services market. Will broadening its horizons make it a less attractive acquisition target?

Rebranded Inframark eyes industrial growth

Severn Trent Services’ former contract operations business has a new owner and a new name. CEO Stephane Bouvier spells out his strategy to take the business to the next level.

ESP gets a sense for ecological restoration

By becoming a virtual ATM for wetland mitigation credits, Ecological Service Partners is looking to use patient capital to generate topquartile returns for its backers. Is it late to the game?

Iguá Saneamento set to double in five years

The recapitalised Brazilian water concessionaire has emerged from a protracted fallow period with a new CEO and a new growth plan. Boss Gustavo Guimarães talks strategy with GWI.

Water concerns gain traction as Chilean election nears

The outcome of a December poll could have a far-reaching effect on the private water market in Chile. What is at stake?

Aguas Andinas enjoys robust Q3

The Chilean utility’s stock remains range-bound, despite a solid set of third-quarter results. The election outcome could prove to be the next trigger for a re-rating.

Americas water in brief

Brazilian water concessionaire Sanepar priced a BRL1 billion ($316 million) follow-on equity offering on 12 December, enabling the State of Paraná and state energy company Copel to reduce their stakes in the company by a combined total of 16%.


Asia pacific

What’s next for FO in China?

A mixture of operational issues, underwhelming industrial project flows, and shareholder pressure to perform seem to have conspired against the development of forward osmosis in China. The market is still looking for new ZLD technologies.

Willy yeo A new beginning?

How have Chinese and international industrials responded to China’s crackdown on water pollution? GWI’s Willy Yeo takes a look.

Sri Lanka woos foreign firms with water PPPs

Pioneering DBO and BOT contracts spanning desalination, wastewater and bulk water supply are pulling global names into Sri Lanka. With a new PPP unit established in the Ministry of Finance, the opportunities could multiply further.

Aussie pension fund in reuse buy

A company owned by pension fund Colonial First State has bought the Kooragang Island water reuse scheme. It is a major step in building a nationwide portfolio.

Asia in brief

A report released this month into 2016’s Havelock North campylobacter gastroenteritis outbreak, which killed four people, has found that up to 700,000 New Zealanders are exposed to health risks as a result of contaminated water sources.

Sebastian lennox Gadkari’s Ganga roadshow

The BJP heavyweight has made his London debut as India’s water minister. Sebastian Lennox asks whether he is the voice of change.

Europe

Finance costs hit UK numbers

Rising debt service bills crimped mid-year profit margins at many of the UK’s water and sewerage companies. A tough price review could put dividends under further pressure.

Ofwat eyes record low cost of capital at PR19

Regulated UK water companies will be forced to find new ways to outperform from 2020. Will it result in a mass exodus from the sector?

UK water embarks on pre-holiday bond spree

A sequence of new bonds shows an increasing willingness among borrowers to diversify their sources of funding. What’s next?

Castilla-La Mancha readies BOT programme

The Spanish region is finally on the verge of launching a €650 million wastewater concessions initiative. Has it learned from the mistakes of the past, or is it just a case of castles in the air?

Tallinna Vesi shares plunge on court decision

The company was left reeling after it was forced to swallow an unwanted change in tariff methodology. What are the implications?

Europe in brief

Biwater entered its 50th year by swinging back to a net profit of £1.4 million on revenues of £60.2 million, marking a strong recovery from the prior year’s net loss of £4.5 million.

David lloyd owen The state of Eureaupe’s water

Figures from European water associations hide a wealth of detail but point toward positive progress, says David Lloyd Owen.


Middle East and Africa

GrahamTek backers hope to make the case for 16in desal

Private equity investors in South Africa have made a major bet on turning a local engineer into a major global desalination supplier. Success will hinge on persuading the world that 16-inch membrane desalination is a viable concept.

A glimpse into Morocco’s desalination future

The country wants to procure all future large-scale desalination plants using private finance. The emergence of multiple sponsors marks a break with tradition, and follows this summer’s drought and the sacking of the head of the national water utility.

Metito crosses the finishing line on marathon Rwanda bulk water PPP financing

The project developer can now begin work on the water treatment and supply project, some two and a half years after it was first awarded. Despite the delay, Metito says the project will still mark a flagship PPP reference for the region.

SEWA considers IWP switch for new desal plant

The Sharjah utility is looking at options for a privately financed facility at Hamriyah. It will have to overcome bankability worries to make progress.

Future unclear for Ghana’s forex-hit desal BOT

Financial troubles at Ghana Water mean that Abengoa is likely to struggle to sell its stake in the Nungua desalination plant. Exchange rate risk is not the only challenge.

Tom scotney Desalters sweat the small stuff

Top-line numbers may be positive for the region, but smaller opportunities might be more tempting, argues Tom Scotney.

Middle East in brief

Israel Chemicals has completed the sale of its 50% stake in desalination specialist IDE Technologies for $167 million.