2005 - 2006 - Pinsent Masons Water Yearbook 2012

GERMANY PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Non-regulated activities: American Water Enterprises
American Water Enterprises is responsible for the company’s non-regulated activities. It serves some
6 million people and in 2004 generated revenues of US$345 million through a number of different
income streams including O&M contracts, Engineering and planning, Underground rehabilitation of
pipes and Customer service line insurance.
AWW formed American Anglian Environmental Technologies (AAET) in 1993, a 50:50 JV with the UK
based Anglian Water Group (AWG). The purpose of the JV was to pursue opportunities for water and
sewerage projects. AWW bought AWG’s stake in the JV in October 1999 for US$32 million.
In August 2001, AWW acquired all of the North American activities of Azurix from Enron for US$153.3
million plus US$6.5 million in debt. Azurix had built a broad portfolio of activities in the USA and
Canada, including a small utility, and municipal and industrial outsourcing services, water rights and a
web based water trading system. Azurix acquired Philip Utilities Management Corporation for US$106
million in May 1999. Azurix North America (ANA) had a turnover of US$131.5 million in 2001, serving
approximately 2 million people, including 1.82 million for water provision and 0.35 million for
sewerage and wastewater treatment services (estimated).
AWE has a number of PPP O&M contracts across North America. These include water and
wastewater facilities large and small. AWE brings applied expertise to individual plants often
delivering cost savings and improved processes.
Sample Public-Private Partnerships: From Large to Small
Jefferson Parish, Louisiana – wastewater 165 mgd
Buffalo, New York – water 160 mgd
Houston, Texas – water 126 mgd
Seattle, Washington – DBO / water 120 mgd
Evansville, Indiana – water 60 mgd
Camp Creek, Georgia – DBO / wastewater 24 mgd
Hazleton, Pennsylvania – water 10 mgd
Strongsville, Ohio – wastewater 2.5 mgd
Spruce Pine, North Carolina – water / wastewater 1.6 mgd
Using multiple forms of trenchless technologies, AW has repaired over 750 miles of aging
infrastructure with minimal disruption to affected communities. In addition, the company’s residuals
management group focuses on both fixed and mobile services, featuring the beneficial reuse of
materials to reduce both cost and environmental impact. AW also offers a convenient and costeffective
service line protection program to safeguard homeowners from expenses related to repairing
or replacing water or sewer lines should it be necessary.
Turkey
1995 Izmit 15 year BOT 1.3 million bulk water
Thames Water, working with local partners, was awarded the first build, operate and transfer water
supply project in Turkey in 1995. It remains the largest private water company in the country serving a
population of 1.2 million.
The project involved construction of a huge new dam, a water treatment plant and a trunk main
system in Izmit, to the northeast of Istanbul. It was completed within budget and three months ahead
of schedule, enabling water supply to begin in January 1999. Due to political and economic
fluctuations the US$890 million contract has been a challenging one.
Thames Water has a 55% holding in Izmit Su As, the operational company, with the rest being held
by Gama Endustri (22%) as well as Mitsui (7%), Sumitomo (7%) and the Izmit Municipality itself
(15%). 15% of the finance is through equity and 85% from debt. The project serves 400,000 in Izmit,
with the rest in surrounding areas. Despite the massive earthquake in 1999, the assets survived
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Pinsent Masons Water Yearbook 2005 – 2006