2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
1996 Adelaide 25 year BOOT 154,000 water
UU won the Adelaide BOOT contract for water treatment in South Australia’s Riverland region in 1996.
The A$115 million BOOT for 10 water treatment plants serves over 150,000 people in 90
communities. The consortium is made up of UU (50%) and AMP (Australia, 50%). Construction was
from 1997-99, and the facility entered into service in September 1999.
In May 2000, UU Australia signed a £40 million 20 year DBO contract with Queensland Nickel for a
wastewater treatment plant designed to recover nickel from process water. In September 2000, UU
announced that it is seeking to develop an underground lake discovered by Anaconda Nickel Ltd of
Perth in the Western Desert. The lake is estimated to hold 2,000billion litres of water. It is located in
the Officer Basin, 400km from the mining area of Kalgoorie. The water is suitable as industrial water
or could be treated for human consumption.
India
2003 Tirupur 30 year BOT 1.6 million water treatment
This is the first large scale private sector water provision project in India. It was awarded to UU
Australia and Bombay’s (Mumbai's) Mahindra and Mahindra Ltd, serving the capital of Tamil Nadu.
This involves the construction of a 185 Ml/day water treatment plant, pipeline, service reservoirs and a
wastewater treatment plant and pumping stations. The WTP entered service in 2005 and will provide
water for the textile manufacturers and over 1.6 million residents in the Tiripur municipal area and
surrounding villages.
Philippines
1997 Eastern Manila 25 year concession 5.1 million water & sewerage
UUI (18% stake) gained the contract for the eastern zone of Manila’s Metro Manila Water and
Sewerage System (MWSS) together with Alaya of the Philippines (51.1% stake), and Mitsubishi
(11.35%), BPI Capital (11.35%) and employees (6.3%). This is the richer half of the city including the
Makati financial district. US$2.5 billion is to be invested in the eastern zone over 25 years, which
serves 4.6 million people. Households which are connected to the sewerage system pay an extra
50%. The IPO of Manila Water resulted in UU’s stake decreasing to 12%. See separate company
entry for Manila Water.
Manila Water, profit and loss account
FY 31/12 (PHP million) 2001 2002 2003 2004
Water sales 1,180.0 2,111.0 3,062.3 3,413.8
Environmental charges 118.1 209.5 305.9 339.9
Sewer charges 78.4 121.3 198.6 127.2
Total revenues 1,643.6 2,682.5 3,777.9 4,205.6
Net Income 161.1 558.4 1,150.5 1,335.5
Water supply in 2004 is running at a peak of 780 million L/day. Since the concession started, 140,000
leaks have been repaired, saving 250 Ml/day of water. Currently 9% of people and 11% of
households are connected to the sewerage system, and only 0.1% of households have actual
wastewater treatment. The company has rehabilitated the Magallanes wastewater treatment plant
which processes up to 40 million L of wastewater per day. It is also constructing 27 sewage treatment
plants across the area.
Ecuador
2001 Guayaquil 30 year concession 2.5 million water & wastewater
The concession will serve 2.5 million people in the commercial city. ECAPAG has 250,000 customers,
and made a US$1 million operating profit in 2000. US$1 billion will be spent on infrastructure over the
contract’s life, including service extension. Previously, ECAPAG suffered from underfunding to cover
costs and expansion. IW will hold 90% of ECAPAG, which currently provides water to 65% of the
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Pinsent Masons Water Yearbook 2005 – 2006