2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
1999 Rabat 30 year concession 1.7 million water & sewage
The €4.6 billion utility privatisation for Rabat and Sale was awarded to Redal, Dragados’ consortium
with Electricidade de Portugal and Pleiade (Portugal) and Alborada (Morocco). Rabat’s utilities serve
1.7 million people, with a €138 million (US$130 million) turnover for water, sewerage and electricity
services in 1998. 84 million m 3 of water was delivered in 2000. Dragados sold its stake to VE in
November 2002. MD700 million (€64 million) will be invested in the area in 2003, including MD350
million in wastewater treatment facilities, concentrating on a new WWTW in Skhirat.
Israel
2001 Ashkelon 25 year BOT 700,000 water desalination
VID Investment Consortium, comprising VE, IDE and Dankner of Israel gained the BOT contract. VE
will hold 50% of the construction company’s equity and a majority of the operating company’s equity.
The contract covers the construction and operation of a 50 million m 3 per annum facility, the largest
membrane sea water desalination plant in Israel. Total revenues will be €900 million, with the plant
costing US$110 million to build. The provisional price of US$0.527 per m 3 was well below
expectations due to new technologies purchased by VE and a relatively low cost of capital. The
facility was due to enter service in 2003 with full capacity in mid to late 2003.
Niger
2001 Major cities 10 year renewable lease 600,000+ water
VE has been awarded a 10 year renewable lease contract for providing water services to major cities
in Niger. VE will hold 51% of the equity and will spend €5.5 million in service extension and installing
water fountains while the World Bank is leading a group of backers for a €35 million infrastructure
rehabilitation programme. Between 2001 and 2004, the number of connections rose from 58,000 to
72,500, including 11,200 new low cost connections. Niamey (600,000 people) is the initial target area,
with other addressable markets to be covered later. The contract will be worth a total of €150 million
and aims to serve 1 million people when fully operational. Bill collection rates were 97% in 2004,
reflecting a programme to optimise affordability for all clients.
Burkina Faso
2001 Ouagadougou 5 year support services 900,000 water
VE, along with local companies Cabinet Mazars and Guerard was awarded a five year support
services contract supported by the World Bank to expand services for the city aiming to cover 0.9
million people.
Australia and New Zealand
United Water is a venture between Thames (47.5%), VE (47.5%) and Australia’s Kinhill Engineers
(5%). It was set up as part of the Adelaide contract, in order to secure business for the state in other
parts of Australasia.
Australia
1995 Adelaide 15 year BOT 1.2 million water & sewerage
This was the first contract gain by the TWI/VE UW alliance. The project involves A$650 million of
construction work and the concession will be worth A$1.5 billion over its life. The contract involves the
construction and operation of six water treatment plants and four sewage treatment plants and allied
distribution infrastructure. The first phase entered service in 1996.
New Zealand
1997 Papakura 30 year BOT 40,000 sewerage
Papakura is an urban district of Auckland. The A$12million contract was awarded to UW in 1997.
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Pinsent Masons Water Yearbook 2005 – 2006