2005 - 2006 - Pinsent Masons Water Yearbook 2012

GERMANY PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
remarkably well with only a few short interruptions. Since the commercial operation date, the project
continues to meet 100% of the contractual water quality targets. In 2005, the facility was delivering
water at 82% of capacity to its sole customer, the Izmit municipality.
United Arab Emirates (UAE)
2002 Ajman 27.5 year BOT 180,000 wastewater treatment
Thames gained the concession with Black & Veatch, who have been developing the concept of a new
sewerage system since the mid 1990s. The project has been established as the vehicle to finance,
construct, operate and maintain a leading-edge sewage collection and treatment system for the
Emirate of Ajman, one of the seven Emirates that make up the United Arab Emirates. Ajman has a
population of 200,000, 60% of whom are originally forecast to be connected to a sewerage network
by 2006. The design capacity of the plant will be 70,000m3 per day. Initially, US$140 million in capital
spending will be called for, most during the first four years of the concession. The network will be
designed to handle a maximum population of 352,000 people, the designed capacity of the treatment
plant will be for 300,000 people. The 4-year construction phase is funded by a mixture of debt, equity
and connection fee revenue.
Work on the project started in February 2003, and 30% of the works are now complete. The Civil
construction portion of the wastewater treatment plant is substantially complete, some of the
mechanical and electrical equipment has been installed and the construction of the sewer system
continues. There are currently issues with collection of connection fee tariff and the registration
process, which led to slow down of construction. The shareholders are actively seeking resolution of
these issues with the Government of Ajman and the project is in the process of being restructured.
RWE is seeking to sell these activities by the end of 2005.
The China Water Company
CWC was established in 1996 by a number of international investors. In June 2002, Thames Water
acquired a 48.8% shareholding in CWC and became CWC’s single largest shareholder.
CWC’s principal activities are the investment in and operation of medium sized municipal water and
wastewater infrastructure projects in mainland China. To date, CWC has made investments of
around US$120million and currently operates 6 projects in Yanjiao, Shenyang, Shaoxing, Xinmin,
Qitaihe and Fuzhou through co-operative joint ventures in partnership with the water company of
each city
RWE is seeking to sell its holding in CWC by the end of 2005.
Indonesia
1997 East Jakarta 25 year BOT 3.65 million water customers
TW’s involvement in the Indonesian water industry began in the early 1990’s and through Thames
Pam Jaya (TPJ), its concession in Eastern Jakarta, it is now one of the leading water companies in
the country.
TW was awarded the 25-year TPJ concession, the first private sector water contract in Indonesia, in
1997. It now supplies the in excess of 365,000 customers and has connected thousands of people to
the water supply network for the first time. A further 8500 new connections are forecast for 2005.
The project is funded 25% by equity and 75% by debt. Revenues for Thames Pam Jaya are being
driven upwards as more customers are connected. The contract is forecast to generate €43m in
revenue in 2005. A delay in rebasing of the water charge has adversely affected turnover over the
past two years however a resolution looks to be imminent.
264
Pinsent Masons Water Yearbook 2005 – 2006