41705 PPI data update note 1 May 2006 Private activity in water shows mixed results in 2005 The number of water sector projects involving the private sector grew in 2005, but investment flows to these projects fell considerably, according to just-released data from the Private Participation in Infrastructure Database. In 2005, 41 projects worth US$1.5 billion reached financial closure in 10 low- and middle-income countries. 1 Annual private activity, measured by number of projects, grew 10%, reaching the second highest level since 1990. Investment flows declined 30% but managed to stay within the US$1-2 billion range of the last four years. New private activity was highly concentrated. China accounted for 56% of investment flows and 60% of projects. Algeria followed with one-third of investment flows and 10% of projects. In East Asia, private activity was seen only in China, except for a small treatment plant in Thailand. In China, 25 projects were granted, involving investment of almost US$840 million. Eighteen were contracts for water and sewerage treatment plants (bulk facilities). The remaining seven brought private activity into water utilities through concession or lease contracts. In Europe and Central Asia, private activity was reported in Armenia, Czech Republic, and Russia. In Armenia, a management contract for the city of Yerevan was granted after the previous management contact expired. In Czech Republic, a lease contract for Hradec Kralove region was granted. In Russia, three lease contracts were granted for water utilities, and a management contract for a water treatment plant. In Latin America, private activity was limited to two concessions for water utilities (San Andres' island in Colombia and Tumbes in Peru) and two treatment plants (Chile and Colombia). The level of activity was the lowest in the region since the early 1990s. In the Middle East and North Africa, private activity took place just in Algeria, with a management contract for a water utility in Algiers and three greenfield projects for water treatment plants. Investment commitments for these projects totaled US$510 million. In Sub-Saharan Africa, private activity was limited to one project: the management contract for Ghana Water Company Limited. There was no private activity in South Asia. In summary, 25 of the 41 water contracts were for treatment plants and 16 for water utilities. By type, there were 13 concessions, 17 greenfield projects, seven lease contracts, three management contracts, and one divestiture. In 2005, the share of canceled and distressed private water activity rose by a few percentage points to 11% of projects and 38% of investment committed in 1990-2005. Six projects were canceled in 2005: the partial divestiture of Belize Water Services, Aguas del Illimani concession in Bolivia, Taizhou bulk water contract in China, Maynilad concession in Philippines, the lease contract for Dar es Salaam in Tanzania, and Uragua concession in Uruguay. In addition, two utility concessions went under distress: the Uruguayan government formally requested the cancellation of Aguas de la Costa concession while Energie du Mali's concession for electricity and water services went to international arbitration. A forthcoming note will analyze private activity in the water sector in more depth. See list of projects by region. 1Data on private activity in water include primarily medium and large projects. Small-scale private service providers, which also play an important role in the water sector, are not generally included due to the lack of public information. List of water projects in 2005 Note: ".." denotes Missing data, "n.a." stands for Not Applicable. East Asia and Pacific Country Financial Project Name Project Status Sub- Type of PPI Subtype of Total Closure sector PPI investment Year (US$ millions) Rehabilitate, Aqualia Bengbu operate, and China 2005 Wastewater Operational Sewerage Concession transfer 60.6 Management Changzhou Tap Potable and lease China 2005 Water group Operational Water contract Lease contract 55.6 Build, Potable rehabilitate, Chenggong Salcon Water and operate, and China 2005 Water Company Operational Sewerage Concession transfer 36.3 Handan East Wastewater Rehabilitate, Treatment Plant operate, and China 2005 Expansion Project Construction Sewerage Concession transfer 36.6 Hebei Hangdan Greenfield Build, own, and China 2005 Wastewater Operational Sewerage project transfer 0 Build, rehabilitate, Hedong Chuangwei operate, and China 2005 Water Co. Ltd. Operational Sewerage Concession transfer 44.7 Rehabilitate, Henan Wastewater operate, and China 2005 Plants Operational Sewerage Concession transfer 7.7 Huaiyuan Tapwater Potable China 2005 Plant Operational Water Divestiture Full 0.7 Jiangdu Water Potable Greenfield Build, own, and China 2005 Treatment Plant Construction Water project transfer 21.6 Management Kunming Water Potable and lease China 2005 Supply Company Operational Water contract Lease contract 124 Lianyungang Rehabilitate, Wastewater operate, and China 2005 Concession Construction Sewerage Concession transfer 16.9 Lianyungang Greenfield Build, own, and China 2005 Wastewater Plant Construction Sewerage project transfer 12.7 Potable Rehabilitate, Linyi City Salcon Water and operate, and China 2005 Water Concession Operational Sewerage Concession transfer 4.4 Rehabilitate, Linyi Salcon Water operate, and China 2005 Co. Ltd. Operational Sewerage Concession transfer 5 Potable Greenfield Build, own, and China 2005 Nanchang Water Operational Water project transfer 21.7 Nanjing Wastewater Greenfield Build, own, and China 2005 Plant Construction Sewerage project transfer 10 Pizhou City Water Potable Greenfield Build, own, and China 2005 Supply Project Construction Water project transfer 9.9 Rugao Water Potable Greenfield Build, own, and China 2005 Treatment Plant Construction Water project transfer 48.1 Suqian Water and Greenfield Build, own, and China 2005 Wastewater Plants Construction Sewerage project transfer 21.5 Potable Rehabilitate, Tie Ling City Water Water and operate, and China 2005 and Wastewater Operational Sewerage Concession transfer 15.1 Wuhan Hanxi Municipal Wastewater Greenfield Build, own, and China 2005 Treatment Project Construction Sewerage project transfer 56 Wuhu Hong Kong Potable Rehabilitate, and China Water Water and operate, and China 2005 Company Limited Operational Sewerage Concession transfer 84.6 Wujiang Hong Kong Potable Rehabilitate, and China Water Water and operate, and China 2005 Company Limited Operational Sewerage Concession transfer 117 Xintai City Greenfield Build, own, and China 2005 Wastewater Construction Sewerage project transfer 12.9 Zhuozhou Sewage Greenfield Build, own, and China 2005 Treatment Plants Construction Sewerage project transfer 15.1 Thailand Water Treatment and Reclamation Plant Greenfield Build, own, and Thailand 2005 project Construction Sewerage project transfer 5.6 Europe and Central Asia Country Financial Project Name Project Status Sub- Type of PPI Subtype of Total Closure sector PPI (US$ millions) Year Armenia 2005 Yerevan Water and Operational Potable Management Management 0 Sewerage Company Water and and lease contract II Sewerage contract Czech 2005 VAK Hradec Kralove Operational Potable Management Lease contract 10 Republic Water and and lease Sewerage contract Potable Management Russian Berezniki Water Water and and lease Federation 2005 Utility Operational Sewerage contract Lease contract 0 Potable Management Russian Petrozavodsk Water Water and and lease Federation 2005 Utility Operational Sewerage contract Lease contract 0 Potable Management Russian Rostov-on-Don Water and and lease Federation 2005 Water Utility Operational Sewerage contract Lease contract 0 Russian 2005 Southern Water Operational Potable Management Management 0 Federation Plant Treatment Water and lease contract contract Latin America and the Caribbean Country Financial Project Name Project Status Sub- Type of PPI Subtype of Total Closure sector PPI (US$ millions) Year Chile 2005 Antofagasta Operational Potable Greenfield Build, own, and 54 Desalination Plant Water project operate Colombia 2005 Aguas de San Operational Potable Concession Build, 9.3 Andres Water and rehabilitate, Sewerage operate, and transfer Colombia 2005 Barranquilla Construction Sewerage Greenfield Build, own, and 3.4 Sewerage Treatment project operate Plant Peru 2005 EMFAPA Tumbes Operational Potable Concession Build, 72 Water and rehabilitate, Sewerage operate, and transfer Middle East and North Africa Country Financial Project Name Project Status Sub- Type of PPI Subtype of Total Closure sector PPI (US$ millions) Year Algeria 2005 Aguas de Skikda Construction Potable Greenfield Build, own, and 110 SpA Water project operate Algeria 2005 Beni Saf Water Construction Potable Greenfield Build, own, and 160 Company SpA Water project operate Algeria 2005 Hamma Water Construction Potable Greenfield Build, own, and 240 Desalination SpA Water project operate Algeria 2005 Societe des Eaux Operational Potable Management Management 0 d'Assainissement Water and and lease contract d'Alger (SEAL) Sewerage contract Sub-Saharan Africa Country Financial Project Name Project Status Sub- Type of PPI Subtype of Total Closure sector PPI (US$ millions) Year Ghana 2005 Ghana Water Operational Potable Management Management 0 Company Limited Water and and lease contract Sewerage contract