2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Republic of Korea
2004 Kumdan 23 year BOT Wastewater treatment
The Kumdan WWTW is located near Inchon. The facility will have a capacity of 40,000m 3 per day and
will generate consolidated revenues of €80 million.
2001 Inchon 23 year BOT 2.4 million sewage treatment
The Inchon contract involves US$300 million being spent on two sewage treatment works (Mansu,
70,000m 3 per day and SengDo, 10,000m 3 per day) with a total capacity of 80,000m 3 per day. The two
facilities are due to enter service at the end of 2004.
Indonesia
1997 Sidoarjo 25 year BOT 100,000 bulk water supply
This concession is for bulk water provision to PDAM Delta Tirta Sidoarjo, the local water entity. The
concession holds 95% of the equity, along with Indonesia’s PT Agumar Nusa and PT Hansa Letsari.
The build and management concession will entail a capital investment of Rp130 billion, or a €4 million
investment by Veolia Water. The facility will have a 20,000m 3 day capacity, for 100,000 people.
Philippines
1998 Manila 25 year concession Water supply and sewerage
The concession serves the Fort Bonifacio area, which has been set aside as Manila’s future business
district. Universal provision of all services will be undertaken, a first in the Philippines. There was an
initial investment of F200 million.
2000 Manila 25 year concession Water supply and sewerage
The concession for the Clark Economic Zone is similar to the Fort Bonifacio contract. In this case, it is
for a 4,400Ha site earmarked for future development, where €25 million will be spent developing the
basic water and wastewater infrastructure in the first three years of the contract.
Malaysia
The company gained its first concession in 1994 and has made further progress by working with local
companies so as to take over the operation of their concession contracts.
1994 Selangor 25 year O&M contract 1.4 million water provision
The Selangor contract involves bulk water provision for the entire state. This involves the
management and rehabilitation of the state’s 26 water treatment plants with VE as a sub-contractor to
Puncak Niaga.
In July 1998, VE acquired 17.8% of Intan Utilities’ (IU) equity for US$12 million. This stake was
subsequently increased to 30%. There will be a transfer of O&M agreements from IU to a subsidiary
of VE. IU is 25% held by Vincent Tan, who sold a 9.5% holding in IU to VE as part of the overall
transaction. IU provides water to 600,000 people in Ipoh, in the state of Perak under a 26 year
concession granted in 1989. In 2004, VE’s stake was sold to Vincent Tan.
Gabon
1997 SEEG 20 year concession 450,000 utility services
VE won the tendering process to acquire a 51% stake in the Gabonese public utility Société
d’Electricité et d’Eau du Gabon (SEEG), with 49% of SEEG held by local investors. This is a F700
million concession for water production and electricity distribution to the three principal cities;
Libreville, Port-Gentil and Franceville, including F200 million for water. Average tariffs fell by 17% at
the start of the contract and have been held to less than the rate of inflation since then.
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Pinsent Masons Water Yearbook 2005 – 2006