Monitoring MWSS privatization: Water Rates

The management of Manila’s water and sewerage distribution system (MWSS) was privatized in August 1997 in what has largely been touted as a ‘successful’ water privatization, and the largest to date in the Asia-Pacific region.  The International Finance Corporation (IFC), the World Bank’s private sector arm, was adviser to the privatization, which resulted in two 25-year concessions (east and west) competitively bid.

Suez, E.on and others: prosecuted and fined for cartels, coverups, illegal agreements

Water and energy multinationals have been fined and/or investigated by the European Commission for a number of competition offences. These include possible attempts to cover up evidence of wrong-doing.

Court rules in favour of Pecs decision to terminate Suez water contract

A Hungarian arbitration court has ruled that the city council of Pecs was legally entitled to terminate its water service contract with the multinational Suez Environnement, and take over the running of the service itself. In March 2010:

Critical review of jakarta water concession, 2007

A comprehensive critique of the jakarta water concessions, published in 2007

Profile of Aguas de Barcelona

PSIRU profile of Aguas de Barcelona October 2009

Hungary: Pecs city council tries again to terminate Suez water contract

In September 2009 Pecs city council gave notice to Suez that, at the end of September, it would terminate the water contract with the joint Suez-municipal company Pecsi Vizmu (48% owned by Suez, 52% by the municipality), because of excessive profits and high prices: "the company's acquisitions of stakes in other small water utilities, and the high water utility fees charged by the firm, did not serve the interests of residents." The contract was originally awarded in 1993, without any competitive tendering.

water and competition

There is no evidence of actual vcompetition being important in obtaining private water contracts in Europe. A new PSIRU study shows that in the UK, France and Spain nearly all private contracts were originally obtained, and then retained, without even competitive tendering.

This applies to all companies including those such as Sacyr Vallhermosa

Nouveaux contrats : Ondeo au Burkina Faso (ONEA) et au Sénégal (SONES), Février 2002

Communiqué de presse, Paris, le 20/02/2002

Ondeo (SUEZ) remporte deux nouveaux contrats en Afrique

Le Sénégal et le Burkina Faso font appel à Ondeo Degrémont pour répondre aux besoins croissants en eau potable de leurs capitales. Le spécialiste mondial de l’usine de traitement construira de nouvelles installations de production d’eau, d’une valeur de plus de 35 millions d’euros.

Keur Momar-Sarr, Sénégal

Contrats de Ondeo (Suez) au Burkina Faso et au Sénégal

European Report

March 6, 2002


SECTION: No. 2665

LENGTH: 181 words

Sumitomo Wins Al Hidd Independent Water and Power Project

Jan. 23, 2006 - Sumitomo Corp. Wins Al Hidd Independent Water and Power Project.
Sumitomo Corporation, headed by President Motoyuki Oka, won the concession for the Al Hidd Independent Water and Power Project (IWPP) in the Kingdom of Bahrain jointly with U.K. power supplier International Power and Belgian energy infrastructure company Suez-Tractebel. The joint venture of the three firms incorporated a local firm at an investment proportion of 30% by Sumitomo, 40% by International Power, and 30% by Suez-Tractebel to implement the project. After a basic agreement was reached between the consortium and Ministry of Finance of Bahrain, the power and water purchase agreement (PWPA) was officially signed on January 22, 2006.

JBIC Loan to IWPP Project in Bahrain

JBIC Signs Loan Agreement for the Al Hidd Independent Water and Power Producer Project in Bahrain, First Loan Provided by JBIC for Project Financing in Bahrain (April 5, 2006) - 1. Japan Bank for International Cooperation (JBIC; Governor: Kyosuke Shinozawa) signed a loan agreement on April 4 totaling up to US$1 billion in project financing*1 for the Al Hidd Independent Water and Power Producer Project.

JBIC loan for Power and Desalination Project in Qatar

JBIC Signs Loan Agreement for Power and Desalination Project in Qatar Supporting Japanese firms' overseas IWPP project and helping strengthen ties with a resource-endowed country (August 6, 2008)

JBIC loan to Marubeni consortium to acquire Singapore’s largest genco (Temasek)

Sep 5, 2008 - The consortium comprised of Marubeni Corporation (30%), GDF Suez S.A. (30%), Kansai Electric Power Co., Inc. (15%), Kyushu Electric Power Co., Inc. (15%) and Japan Bank for International Cooperation (10%) has reached agreement with Temasek Holdings (Private) Limited to acquire all the shares of Senoko Power Limited (“SPL”) . SPL is located in the Northern part of Singapore, and is the largest power generation company in the country. SPL owns and operates total generation capacity of 3,300MW, which constitutes about 32% of installed generation capacity in Singapore. Electricity generated by SPL is mainly supplied to customers through its wholly owned retail providers. By participation to this acquisition, the Consortium will gain stable profit through electricity sales in Singapore, a worthwhile market as a foundation of overseas projects in Asia, and where expansion of electricity demand accordingly with stable economic growth is continuously expected. Furthermore, by providing electricity supply after the acquisition, and by energy streamlining through the repowering operation, this acquisition would be a foothold for each of the private enterprises to further develop overseas investment business, together with contributing to the development of power project as an essential infrastructure in the country.

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. A year after inking a partnership deal, Suez Environnement and Mahindra Infrastructure Developers Limited (MIDL) are actively bidding for water management contracts, including water supply concessions, in a number of cities in western India. Although Suez Environnement’s Degrémont subsidiary has an extensive reference list of water and wastewater treatment plants in India, Suez has yet to break into the concessions market. CEO Jean-Louis Chaussade is optimistic that this will change: “We will probably pick up management contracts in the water business in India soon – it’s a question of months,” he told GWI. Although there is a limited pipeline of potential projects, Chaussade wants to start off on the right foot. “It’s a new country for us in terms of concessions, and therefore we want to be successful in the first instance. We have been looking carefully with Mahindra at the cities or regions where we can do that.” The focus of the partnership will primarily rest on PPP contracts for the management of utility services, given Suez Environnement’s extensive experience as a private utility operator. Going forward, the Suez-Mahindra partnership intends to target PPP opportunities in water management in those Indian cities which have been identified for infrastructure development under the JNNURM scheme. “The partnership is currently devising a new PPP model that would suit both the Indian utilities’ prerogative of keeping the water and sanitation service user charges affordable, and address the profitability concerns of the private players”, an MIDL official told GWI. “The new model would focus on resultoriented services and benefits for utility service users, and on a short-term return on investment for the private players. Existing BOT contracts and PPP models have a longer break-even time period, and are more exposed to risks associated with political instability,” the official added. Suez Environnement entered into a strategic partnership with MIDL in July 2007 to pursue selective development projects in the water supply and sanitation area in India.

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