2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
has carried out consulting work in 48 countries, and is currently active in the USA, Belgium,
Azerbaijan, Russia, the Ukraine, and South Africa.
UK – Project Aquatrine
2005 UK MoD 25 year PFI Water & wastewater services
Coast to Coast Water (C2C), consisting of Severn Trent Services (50%) and Costain (50%) gained
Package C of Project Aquatrine, serving 1,500 military sites in South East, East and North England.
The contract is worth £1 billion and started in April 2005.
Revenues in all cases have been impacted by the weak US dollar.
Turnover, Y/E 31/03 (£ million) 2001 2002 2003 2004 2005
Operating services - STES & STOS 122.2 120.6 126.1 128.1 131.4
Water purification 73.0 89.4 87.5 82.9 76.7
Laboratories 155.2 171.6 171.8 170.2 162.6
The investment in Belgium’s Aquafin has been amply justified. Italy and the USA are regarded as the
main markets for growth in the short to medium term. In 2001-02, the company had 600 water and
wastewater contracts in the USA, with a 77% contract retention rate, against 80% in 2000-01.
Indaqua, the Portugese activities, were sold to Mota-Engil (Portugal) for a £4.3 million profit in 2005.
Severn Trent, number of people served in the UK and internationally
Country Water Sewage Total
England & Wales 7,250,000 8,280,000 8,280,000
Belgium 0 3,300,000 3,300,000
Germany 0 45,000 45,000
Italy 350,000 350,000 350,000
USA 500,000 2,000,000 2,500,000
Total - home market 7,250,000 8,280,000 8,280,000
Total - international 850,000 5,695,000 6,195,000
Grand total 8,100,000 13,975,000 14,475,000
Belgium
1990 Flanders Holding in Aquafin NV 3 million sewerage
SVTI acquired 20% of Aquafin NV in 1990. Aquafin was set up by the Flemish Regional Government
to oversee the region’s belated development of its sewerage network to serve its 5.781 million
inhabitants. It is 51% held by the Flemish Regional Government, 20% held by SVTI, with the other
28% being held by a number of institutional investors. SVTI is using this contract to gain experience in
developing large and advanced sewerage systems effectively from scratch. One of the key
characteristics of the project has been the development of remote sensing and operations
management systems, thereby keeping on site staffing costs to a minimum. SVT’s stake generated an
operating profit of £10.7 million in 2004-05, see company entry.
Germany
1993 Nohra 15 year O&M 45,000 sewage
Severn Trent Wasser and Abwasser GmbH (STREWA), have a strategic stake in BFG Nohra. The
sewage treatment works also handles wastes from a nearby abattoir, which adds considerably to its
treatment load. With seven years of the contract to run, STREWA believes that the contract can be
extended at the re-bidding stage.
Italy
In February 2000, Severn Trent Italia (SVTI) acquired Ecotechnica SRL as part of a strategy of bidding
for water and wastewater privatisation opportunities in northern Italy. Ecotechnica is based in Milan
and was purchased from Group Maffei. The company operates wastewater facilities in the Bresica
355 Pinsent Masons Water Yearbook 2005 – 2006