2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
north Wales. UU is now involved in managing contracts covering 35% of the UK water sector’s asset
base and is involved in 60% of the 9% of the utilities market in the UK that has been outsourced to
date. Scottish Water Solutions gained a contract starting in 2004 to manage £1.1 billion of Scottish
Water’s £1.8 billion 2001-06 capital spending programme.
International activities
United Utilities International Ltd. (UUI) is the 100% held international water contracts arm of UU. After
a number of major contract gains by UUI (as North West Water International) in 1993 and one in 1994,
it entered into a JV with Bechtel. In 2003-04, International Water sold its stakes in the Bulgarian,
Philippine, Polish and Estonian operations back to UU and other parties.
UU remains one of the leading UK water companies for international contracts. The company has
gained a reputation for aggressively cutting back at capex demands while meeting compliance targets.
The company ought to be regarded as one of the five leading global competitors in water and
sewerage privatisation projects. UU’s current target markets are the UK, central and eastern Europe
and Australia.
United Utilities Plc, number of people served in the UK and internationally
Country Water Sewerage Total
England 6,840,000 6,880,000 6,880,000
Wales 2,788,000 3,043,000 3,043,000
Scotland – PFI 0 480,000 480,000
Poland 300,000 300,000 300,000
Estonia 405,000 405,000 405,000
Bulgaria 1,300,000 1,200,000 1,200,000
Kuwait 0 1,900,000 1,900,000
Ecuador 2,500,000 1,730,000 2,500,000
Philippines 5,100,000 500,000 5,100,000
Australia 500,000 0 500,000
India 1,600,000 0 1,600,000
Total - home market 9,628,000 10,323,000 10,323,000
Total - international 12,105,000 6,035,000 13,505,000
Grand total 21,723,000 16,358,000 23,828,000
Poland
1999 Biesko Biala 12 year concession 300,000 water and wastewater
In November 1999, UUI and International Water entered into a strategic partnership with the
municipality of Biesko Biala and acquired 33% of Aqua SA, the utility providing water and wastewater
services to the city (200,000) and surrounding area. The privatisation is being supported by the World
Bank. UUI currently holds 25% of Aqua SA.
Estonia
2000 Tallinn 15 year concession 405,000 water and wastewater
The total contract is worth US$700 million. UU and IW bid KR1338 million (US$75.6 million) for a
50.4% stake in AS Tallinna Vesi. The city of Tallinn also holds a single Golden Share. UU now holds
38% of AS Tallinna Vesi. There will be 15% price increases in 2004 and 2005. The emphasis is on
developing a municipal and stormwater sewerage and effluent treatment system. The contract
involves KR3.98 billion in capex over 12 years, including sewerage and stormwater systems in
operation by 2006.
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Pinsent Masons Water Yearbook 2005 – 2006