2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
of Biwater's profitability in recent years. This contract is 100% held by Cascal and will run in
perpetuity, subject to 10 years notice of termination.
YE 31/03 (£ million) 2003 2004 2005
Water supply turnover 27.17 28.41 29.97
Non-regulated turnover 1.95 2.31 2.81
Group turnover 29.11 30.70 32.78
Operating profit 9.37 9.43 10.55
Pre-tax profit 8.31 8.65 9.85
Meter penetration in 2005 reached 35% and is expected to reach 55% by 2009-10. In 2005, the
company refinanced its debt through issuing £65 million of index linked wrapped bonds under the
Royal Bank of Scotland’s Artesian programme. These bonds are repayable by 2033 and carry a
coupon of 3.084%, with an inflation-related indexation charge on their principal value.
Philippines
1996 Subic Bay 25 year concession 370,000 water & sewerage
The Subic Water and Sewerage Company is a JV with local partners, serving Subic Bay Freeport and
Olongapo City. The contract involves capital spending of US$150 million in the first 10 years, with
US$250 million over the concession's life.
Indonesia
1995 Batam Island 25 year concession 650,000 water provision
Cascal has a controlling interest in Adhya Tirta Batam with local partner (Cascal 50% and PT Bangun
Cipta Contractors 50%). Batam Island industrial zone is 2 miles from Singapore. The concession
involves US$100 million of capex in the first 10 years and US$200 million over the concession's life
(Rp37.5 billion). Non-revenue water has been reduced from 49% in 1995 to 31% by 2005. Water
demand grew by 10% in 2002-03, with 69,000 customer connections. In 2003-04, connections rose
by a further 18% to 81,000 and to 93,00 by March 2005, with the volume of water delivered rising by
16% during the year.
2000 Talang Kelapa 20 year concession 40,000 water provision
Talang Kelapa is situated to the north of Palembang. The aim is to provide potable water for up to
200,000 people, as well as industrial users, in an area characterised by water shortage. The
concession is being operated with two local partners.
Chile
1994 Santiago Concessions 9,000 water & wastewater
Biwater acquired Servicos de Agua Potable Barechea SA (SAPBSA) and Aguas Chacabuco SA two
companies operating outside Santiago, with concessions serving medium to high quality residential
and industrial areas in the North and East of the city. These are grouped together as Aguas Santiago
SA and started supplying water in 1996. A water treatment works for the Pan de Azucar concession
area was constructed in 2004. The company seeks to buy one or more of the water utilities currently
being sold off, and owns US$50 million in water rights.
1994 Antofagasta 30 year concession 260,000 sewage treatment
This is the first privatised WWTW in Chile. The Antofagasta facility serves one of the driest parts of
the world, with only 3.3mm of rainfall per annum. The facility handles a population of 300,000 and
recycles the water, selling it on to industry, farms and households.
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Pinsent Masons Water Yearbook 2005 – 2006