2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Bolivia
1997 La Paz & El Alto 30 year concession 1.4 million water & wastewater
Aguas de Illimani (ASIA) is the consortium operating the concession. The shareholders are Suez
(55%), Banco Mercantil (20%), Ingineniere Connal (5%) and other Argentinean investors who hold the
remaining 20%. La Paz has 750,000 people and El Alto 700,000. The concession started in July
1997. This involves US$360 million in investments over the contract period. 96% of the population is
connected to the mains, against 83% for water and 50% for sewerage in 1997. Service coverage has
increased by 435,000 since the concession began.
The current status of the contract is unclear because of protests that ASIA is not connecting enough
people outside the contract’s service area (an estimated 200,000 people have moved to these areas
in recent years from the countryside) and changes in the tariffs due to the depreciation of the Boliviano
against the US Dollar. Bolivia’s President Mesa subsequently published a decree requiring that the
public authorities cancel the contract. The authorities in question have yet to define the procedure
they intend to use and after five months, the picture remains unresolved.
Brazil
Water and waste management revenues in 2004 were €187 million.
1995 Limeira 30 year concession 256,000 water & sewerage
A landmark concession in Brazil. Currently, 250,000 people have been connected to water and
sewerage services (100%), with distribution losses falling from 40% to 17% from 1995 to 2001.
2000 Manaus 30 year concession 1.4 million water & sewerage
The contract to manage the water concession of the city of Manaus, the capital of Amazonia in Brazil
was awarded in June 2000. This is the largest private water contract awarded in Brazil. Suez holds
100% of Aguas do Amazonas, which had revenues of US$70 million in 2001. Investments are
concentrating on improving drinking water services, expanding them to peri-urban areas and
developing wastewater treatment services, which have risen from 4% in 2000 to 10% of connections
in 2002. US$11 million was spent on improving drinking water quality in 2001, along with cutting
distribution and illegal abstraction losses from 77% in 2001 to 70% in 2003.
Chile
1999 Santiago Privatisation of EMOS 5.1 million water & sewerage
Suez and Agbar acquired 51% of Empressa Metropolitana de Obras Sanitarias (EMOS, now called
Aguas Andinas), Santiago’s water supply company for a total of US$1,135million in 1999 and 2001.
All 44 districts of the city are to be covered, along with the long-term development of its wastewater
services. Aguas Andinas generated €215 million in consolidated revenues for 2003. Revenues are
expected to double in the next ten years because of wastewater expansion. Currently, 100% of the
population is served with piped water and 97% by mains sewerage, while 75% of sewage effluents are
treated, (see separate company entry for Aguas Andinas). In July 2004, Agbar bought 30.1% of
Suez’s holding in Inversiones Aguas Metropolitanas Limitada (IAM) for €139.4 million. IAM holds 51%
of Aguas Andinas, with Suez holding 19.9% of IAM. The deal reduced Suez’s net debt by €220
million.
IAM is currently planning to sell 49% of its capital in an initial public offering on the Santiago Stock
Exchange. It is anticipated that this sale will raise US$400 million.
2000 NE Santiago Aguas Cordillera 315,000 water & sewerage
Enersis sold Aguas Cordillera to EMOS for US$193 million in June 2000. The second highest bidder
was Biwater at US$179 million. Aguas Cordillera serves 88,000 customers in the Vitacura, Las
Condes and Lo Barnechea districts of Santiago.
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Pinsent Masons Water Yearbook 2005 – 2006