2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
There are also 3 BOT contracts previously operated by Azurix:
1999 León BOT 1.1 million sewage treatment
1999 Torreón BOT 1 million sewage handling
1999 Matamoros BOT Industrial sewage treatment
Argentina
Aguas de Santa Fe was to be sold to Fides Group and Grupo Energia BV in August 2005, who
through Emgasud operate domestic gas services in Argentina. The status of this transaction is
currently uncertain.
1995 Santa Fe 30 year concession 1.8 million water & sewerage
Aguas Provinciales de Santa Fe, is majority held by Ondeo Services (52%) and Agbar (26%). The
consortium was to invest US$785 million prior to the Peso crisis, which is also to be renegotiated. By
2001, water was being supplied to 1,707,500 people and 1,125,000 were connected to the sewerage
network, with 2.7 million living in the city. Turnover in 2001 was US$104 million.
1997 Cordoba 30 year concession 1.27 million water & sewerage
The Aguas Cordobesa consortium consists of Ondeo Services (39%), Agbar (17%) and five
Argentinean companies. US$465 million was to be invested prior to the Peso crisis but this sum is
now being renegotiated. 97% of the population is to be connected to the mains water supply network
in 10 years and 660,000 to the sewerage network in the medium term. Turnover in 2001 was US$69
million per annum. By 2003, 91% of the population was connected to water services after an
investment of US$120 million.
Buenos Aires
1993 Buenos Aires 30 year concession 7.8 million water & sewerage
Aguas Argentinas (AASA) is the world’s largest single water and wastewater privatisation to date and
(until the 2001-02 Peso Crisis) arguably the most successful. It is described in detail in the country
entry for Argentina. Suez’s consortium won the bidding for the concession in April 1993 and took over
the management of a run-down network with 45% distribution losses, providing water to 70% and
sewerage for 58% of the city’s 9 million inhabitants. Between 1993 and 2001, water production was
increased by 37% and the number of connections by 30%. The population connected to water has
increased from 6 million in 1993 to 7.8 million in 2001, and from 4.9 million to 5.8 million for sewerage.
All performance criteria targets have been significantly exceeded on a consistent basis. In 1995, the
municipality of Quilmes was incorporated into AA's operating mandate. The municipality has 530,000
people, 87% of whom are served with water and 53% with sewerage. Suez holds 46% of the
concession’s equity and Agbar a further 25%, giving Suez effective control. Capital spending for AA in
2001 was US$140 million, with the priority upon low cost water and sewerage connections for poorer
neighbourhoods. Turnover in 2001 was US$608 million. To date US$1.6 billion has been invested in
AA. During 2001, water supply was extended to 1.5 million people through the US$135 million
Saavedra-Moron pipeline.
Suez had €480 million in hard currency debt in Argentina at the end of 2001, the great majority relating
to water investments. The company recorded a €80 million loss on currency translations for the year,
along with releasing €118 million in provisions. Despite the Peso crisis, all services are being
maintained while the company seeks to adapt these contracts to the new circumstances. A further
write-down of €500 million (net of minorities and tax) was made in June 2002.
In July 2004, an interim debt restructuring agreement was drawn up to create the basis for a
normalisation of the contract in 2005. However, at the time of writing (September 2005), Suez
announced that it would be exiting Aguas Argentinas.
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Pinsent Masons Water Yearbook 2005 – 2006