2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
1995 Chongqing 30 year BMO, S-FH 0.4 million bulk water supply
A US$25 million build and manage contract in Sichuan province, based upon enlarging a water
treatment facility that now supplies 20% of the city’s 2 million population.
1994 Guangzhou 30 year BMO, S-FH 0.9 million bulk water supply
The Guangzhou contract will account for 25% of the city’s current needs.
1992 Tanzhou 35 year BOT, S-FH Bulk water supply
1994 Gaozhou 30 year BOT, S-FH 170,000 bulk water supply
1996 Nanchang, Jiangxi 28 year BOT, S-FH 0.9 million bulk water supply
1996 Macao 25 year concession 540,000 water supply
This is a renewal of the SAAM contract awarded in 1988 for water provision to 540,000 people,
including 140,000 customers. Suez/New World Holdings (NWH) holds 85% of the concession.
Taiwan
2002 Kaohsiung 17 year BOT 3,000,000 water treatment
Taiwan Water Supply Corporation awarded a reconstruction and O&M contract to Ondeo Degrémont
and Ecotek, a subsidiary of China Steel, for the overhaul and operation of a drinking water plant in
Kaohsiung. The contract is worth €200 million, of which Ondeo Degrémont’s share is €90 million or €6
million per annum over the 15 year O&M stage. The new facility will produce 450,000m 3 of drinking
water per day by March 2004.
Korea
2000 Yangju 24 year BOT 100,000 sewage treatment
Suez and Ondeo Degrémont (60%) and Hanwha (Korea, 40%) became the preferred bidder for a
contract to design, build and manage three sewage plants for a total daily volume of 75,000m³ and an
85km collecting network in the county of Yangju, in the province of Kyonggi. The population currently
stands at 100,000 habitants, but is predicted to reach 400,000 inhabitants in 2016 due to urban
development. Turnover will be of €185 million over the duration of the contract.
2001 Pusan 18 year BOT 800,000 sewage treatment
The 135,000 gallon per day facility and 24km of collecting sewerage pipes will cost US$160 million to
build, with the contract generating US$490 million over its lifetime. Ondeo holds 65% of the
consortium, along with Samsung Engineering (20%) and Khumo Industrial (15%). Pusan has a total
population of 4 million.
Philippines
1997 West Manila 25 year concession 4.3 million water & sewerage
Maynilad Water Services, Inc. (MWSI), was awarded the Western half of the Metro Manila water
distribution concession in August 1997. Maynilad Water is meant to supply potable water 24 hours a
day to approximately six million people in the Western Zone by 2007. While Manila Water had a
difficult start due to its low original tariffs, Maynilad has suffered from a mid concession-life crisis. The
problems arose when Maynilad took on 90% (US$800 million) of MWSS’ foreign debt, which between
1997 and 2000 doubled in Peso terms from P20 billion to P40 billion due to the Peso’s weakness.
Although Maynilad gave notice to halt the concession in March 2003, continuing arbitration and
associated legal processes have meant that it continues to run under its current structure. The
November 2003 and April 2004 agreement would have resulted in a write-off of P3.8 billion (P3.2
billion in equity and P629 million in debt) and the loss of control in Maynilad. As of July 2004, a new
court ruling has meant that the entire arbitration process probably needs to be restarted. For further
details, see the Benpres (Philippines) company entry.
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Pinsent Masons Water Yearbook 2005 – 2006