Report Type: Research Note

Brief research summaries of market development or company strategies.

Manila Water Matures with Tariff Revisions

On 15 May 2015, Metropolitan Waterworks & Sewerage System (MWSS) Regulatory Office approved rate adjustments for Manila’s water utility concessionaires. Manila Water Company Inc. faces a 2.42% tariff reduction (PHP0.63/m3). Maynilad, on the other hand, will implement a 4.19% (PHP1.35/m3) tariff increase. These adjustments are the net effect of delayed inflation indexing, provisional increases, and arbitration between MWSS and Manila Water over the last three years.

Suez Shores Up French Water Stake with Nantaise

On 28 April 2015, Suez Environnement announced its acquisition of Nantaise des Eaux Services (NDES) from Gelsenwasser AG for an undisclosed amount. Headquartered in Nantes, the French private water utility NDES operates nationwide, with a stronghold in the western regions of Brittany, Pays de la Loire and Poitou. As of end-2013, NDES employed over 320 people and had 150 contracts with local authorities, serving 750,000 people. This is the first domestic deal and the third European transaction that Suez has completed over the past year, following its share increases in Acea (February 2014) and Grupo Agbar (September 2014).

Pennon Consolidates South West UK Position

On 16 April 2015, Pennon Group Plc announced the acquisition of 100% of Sembcorp-owned Bournemouth Water for US$285 million including debt (£187 million). Pennon Group is an environmental services and utility firm whose principal holdings include regional utility South West Water, and Viridor waste management services.