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GWI lists the largest portfolio of privately financed water/wastewater treatment plants around the world

GWI publishes the list of companies having the biggest interests in municipal build-operate-transfer and build-own-operate water and wastewater treatment plants in its latest edition, October 2016.

The list is based on equity ownership of total capacity (i.e. the total of capacity of projects in which a company has an equity interest, multiplied by the percentage share of the project company that they own in each case). It is a pretty rough measure, and in Metito’s case conservative, but GWI clearly states that it is the best estimation based on the data available. Looking at active non- Chinese developers only, the leaderboard* was published to be: 1) Suez; 2) Veolia; 3) Tedagua; 4) Engie; 5) Acciona; 6) Biwater; 7) Hyflux; 8) Metito; 9) Mitsui; 10) Sembcorp.

*For the complete list please check the latest issue of GWI newsletter– October 2016 edition.

Metito has been awarded with the Industrial Park-Zona Franka wastewater treatment plant project at 10th Ramadan industrial city in Egypt

Metito supports students in Thailand

Metito endorses Corporate Sustainability and Responsibility as part of the organisation’s core values and business model. We align it with our strategic business plan and we lead initiatives on the most prominent fronts that can stir public awareness and create true difference in the communities where we operate and this is reflected in our sustainability agenda that focuses on 3 main pillars; knowledge sharing, education and water relief. This is done with an affinity to invest in initiatives that involved the younger generations as we believe that they are the seeds of change that must be well nurtured and well equipped to carve a better future that is indeed more sustainable.

Earlier this year Metito Thailand supported three schools in Pranburi -west of Thailand by providing the students with basic stationary. More than 500 students benefited from this initiative and the stationary was distributed at the Thai Border Patrol Police, Ban Tha Wang Hin and Prachuabkhirikhan Schools along with 800 water bottles to ensure the student also have access to some needed safe and clean drinking water.

A representative from Metito Thailand, Thanasan Sittichatburana, Metito Business Development Engineer, visited Ban Tha Wang Hin School and helped teachers in distributing the stationery among students in grade 1 to 6 aged.

This is just a start as Metito Thailand are already planning for another outreach / fundraising initiative at Banglamung Home Boys School in Chonburi, Thailand.

Wastewater services to resume as agreement between Views Water and Riffa Views B.S.C and RV Real Estate Company SPC is reached

November 2015, Bahrain: Views Water, Metito’s wholly owned subsidiary in Bahrain, has reached an agreement with Riffa Views B.S.C. and RV Real Estate Company SPC to transfer the ownership of the Riffa Views wastewater treatment plant to the latter, and to reopen this important community facility.

The agreement, which comes after a financial dispute that resulted in operations being stopped at the plant, means that the ownership and responsibility for operations and maintenance at the plant will now be the sole responsibility of the Riffa Views Real Estate Company.

Operations at the plant are set to begin immediately and will commence with the recommissioning of the plant. It is expected that the plant will be fully operational within the next three to four weeks.

The agreement has been welcomed by all parties and Views Water General Manager, Walid Madwar, said: “Views Water had been supporting the local community at Riffa Views since 2005, so the decision to stop operations at the plant was extremely difficult and wasn’t taken lightly.

“However, everyone connected with Views Water is delighted that a workable solution has finally been agreed by all parties and that operations at the plant can now resume. The residents of Riffa Views can once again look forward to having the level of wastewater treatment services their community deserves.

“Views Water looks forward to continue being an active and committed partner that serves the country, the government and the people of Bahrain,” he concluded.

The managing director of Riffa Views, Yasser Al Raee, said: “Our team has worked tirelessly with Views Water to find a workable solution and this agreement is a testament to this hard work and also importantly to the understanding of Metito’s management, who have been extremely patient, supportive and flexible.“

Dr Abdulmajeed Alawadhi, Chairman of the Riffa Views Owners Association said: “The residents of Riffa Views deserve the highest level of services. With this agreement, I can assure them that they can look forward to uninterrupted wastewater treatment services and a community free of the of the wastewater trucks that have been a blight on our wonderful community.”

150 students attend Metito’ s workshop at Rashid School for Boys in Dubai

November, 2015: Emirates Environmental Group (EEG) held its annual Student’s Workshop under the theme; “Global Environmental Challenges – From Green Attitude to Green Action” at Rashid School for Boys in Dubai, UAE. Metito was invited to lead a session covering one of the most important environmental challenges facing the world today; water conservation.

Representing Metito at the workshop were; Hans Meu, Metito Utilities General Manager; Reem Saleh, Metito Corporate Communication Senior Manager and Alaa Waswas, Metito Corporate Communication Executive.

To break the ice , Metito presented students with an individual challenge where they were asked to make up a sentence after putting together, in order , 17 words to form a coherent statement on why we must all conserve water. After announcing the first winner and presenting her with an instant prize the room was buzzing with excitement. A good start for what turned out to be a successful engagement.

Hans then presented an overview on ‘Innovations in wastewater treatment and sustainable solutions’ where he highlighted how water recycling and reuse can change the world and further help in conserving water. The presentation was then followed by Q&As and a group challenge. Thirty groups, made up of 5 senior students each, from over 100 schools across different emirates in the UAE took part in this activity and three teams were announced the winners.

The workshop was very successful and we had a lot of positive feedback from school team leaders, EEG and the students.

“Environmental issues are global concern gaining momentum in recent times. They’re no longer limited by geography of a region or nations. What happens in one country eventually happens to all of us. We all need to tackle these issues and it is imperative that we extend these discussions to the community to empower them to take responsibility for creating a sustainable future. . It is very important for us to involve students in these discussions as they are our future. Metito has played a key role in addressing the issues around waste water and promoting sustainable development for all, and we hope to continue such collaborations for years to come.” commented Habiba Al Marashi, Chairperson EEG, President/CEO, Arabia CSR Network and GRI Stakeholder Council Member.

Summit endorsed by the Egyptian Government and under the auspices of the Prime Minister of Egypt

October, 2015: Held under the auspices of the Prime Minister of Egypt, H.E. Sherif Ismail, the 3rd Annual PPP Investment Summit organized by IQPC was held in Cairo, Egypt.
The summit was held at Four Seasons Hotel – Nile Plaza in Cairo with significant representation from the Egyptian Government and remarkable attendance by senior government officials, leading bankers and established service providers in Egypt.

Atter Hannoura, Director of the PPP Central Unit, Ministry of Finance sincerely welcomed Metito’s team sincerely greeting the at the venue. Representing Metito at the event were; Karim Madwar, Metito Africa Managing Director, Salah Degheidy, Metito Africa Executive Director and Ahmed Zaky, Metito Africa Business Development Manager. The team was also joined by Walid Madwar, Metito Utilities Vice President Business Development, who was also a panelist in the session titled; Project sector focus: Wastewater and desalination sector presentation and panel

The PPP Central Unit at the Egyptian Ministry of Finance has been spearheading the Government’s efforts to identify tenable infrastructure projects that would substantially improve the quality of services provided to the citizens and to entice private sector financial and execution support. This summit provided yet another platform to address key challenges to further evolve the PPP model in Egypt, insights into the latest strategies taken by the Ministry to overcome these challenges. It was also a well communicated venue to make new project announcements and engage with key industry players including Metito.

Metito’s booth was a center of attraction to the summit attendees with a wide screen showcasing key projects and other collateral that showcased our commitment to the environment and to developing communities such as that of Egypt.

The event was also sponsored by Orascom Construction, Al Tamimi & CO., Zaki Hashim & Partners, QNB Al Ahli bank, and Huawei.

Long-term attributes of Islamic finance ideally suited to water industry development

October 27th, Dubai-UAE: Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE and Metito, the leading provider of intelligent water management solutions in the emerging markets , have recently signed a 10-year Islamic financing agreement for AED 240million. This is Metito’s first Islamic finance agreement and DIB’s debut partnership with a private company working in the water and wastewater industry.

The transaction is another step in expanding Islamic finance into sectors and institutions previously catered to by the conventional form of banking. DIB is successfully advocating the agenda of making Islamic finance a norm in the global banking industry and this deal is a testament to the visionary leadership and the meticulously crafted strategic agenda of the largest Islamic bank in the country.

Commenting on the agreement, Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, said: “Clearly the region, and in particular, UAE is witnessing renewed economic momentum with infrastructure development attracting local and international investors. In our view, primary infrastructure development projects are the cornerstone of sustainable growth, a key element of the strategy of the country. DIB has always played a pivotal role in leading and facilitating such transactions and is linked to many landmark deals with some of the top corporates across the UAE and beyond. Metito’s business model and their long-term strategic vision, ties in well with DIB’s own growth plans, and further solidifies our position as a bank of choice in this sector.”

The long-term attributes of Islamic finance also makes it ideally suited for the sustainable nature of the water sector, with many projects lasting decades and requiring on-going finance at competitive rates.

Commenting on the partnership, Mutaz Ghandour, Chairman and CEO, Metito, said: “I am very pleased to have DIB as our first Islamic finance partner. DIB is an innovator in its field – just like Metito is in its sector, making this transaction, and this partnership ideal. The water sector is very cost intensive, and the term length of the projects generally can be prohibitive for many financers, but, by approaching the deal with an innovative and solution-focused mindset, DIB turned this challenge into an opportunity.

“This clarity of vision allowed Metito to embrace Islamic finance – for the very first time – and to root for it within the water and wastewater sector through promoting DIB in the markets where we already have local presence and the bank sees potential,” he added.

Synergy Consulting, Latham & Watkins, and Morgan, Lewis & Bockius LLP have all played a role in making this transaction possible and finalised in a record time.

Commenting on the transaction, Anand Rohatgi, Senior Vice President, Synergy Consulting, said: “We are pleased to act as the financial and transaction advisor for this landmark transaction. Metito’s significant experience in the water sector, DIB’s clear understanding of Islamic financing and project’s operating track record were the key drivers for the successful closure of the transaction. The transaction also provides opportunity for Metito and DIB to build on and further strengthen their relationship by partnering in other geographies that are in line with their growth plans.”

The value of assets belonging to Islamic finance is forecast to increase by 80 percent to reach US$3.24 trillion by 2020 according to the Dubai Islamic Economy Development Centre (DIEDC) and Thomson Reuters State of Global Islamic Economy (SGIE) report and landmark deals such as this one are critical in supporting the leadership’s agenda of establishing Dubai as the global capital of Islamic economy.

Water Leader Magazine interview with Rami Ghandour, Metito Managing Director

June, 9th, 2015 – As part of its ongoing commitment to Egypt, Metito, the leader and provider of choice for total intelligent water management solutions in emerging markets, has announced its participation in four key projects that will support the revival of Egypt’s local tourism economy.

The four projects, worth more than EGP 65M, are located in major luxury resorts that serve Egyptians holidaying in their own country, namely; ‘City Stars’ by Golden Coast, ‘Hacienda Bay’ by Palm Hills, ‘Porto Sharm’ by Amer Group and ‘Marassi’ by Emaar Egypt. The projects that include sea water desalination installations and sewage treatment plants will be concluded over the course of this year and are aimed to bolster the critical infrastructure at these resorts through ensuring the sustainable supply of clean and safe water and clean treated effluent for irrigation usage, features that are much expected form such luxury holiday resorts.

Commenting on the new signings, Karim Madwar, Metito Africa Managing Director, said: “Egypt is a well known holiday destination, but there are many resorts that cater not only to foreign tourists but also to Egyptians on vacation. These resorts require investment, particularly in their infrastructure, to make them attractive to the Egyptian tourists and to those who wish to invest in real estate through owning vacation houses/villas. The new projects we are working on will play a key role in strengthening the appeal and value proposition of these resorts as we make safe, sustainable and clean water supply available from the outset.”

He added: “Metito has been present and very active in Egypt and our commitment to the country and its people was never compromised, even in challenging economic times. Our portfolio of projects is diverse, working extensively with the industrial, municipal and residential sectors. We believe that Tourism is yet another core sector to Egypt’s economic development and through our tried and tested world-class water management solutions we are proud to be supporting its evolution..”

The plans are in line with recent steps taken by both the Egyptian private and public sectors towards economic recovery in recent months. This ongoing movement has led to an increase in investment across many sectors, bringing back to life several infrastructure projects previously put on hold as well as facilitating new ones.

The projects at Hacienda Bay and Porto Sharm include comprehensive/360 sewage treatment plants with a capacity of 1500m3/day each in addition to providing training for site personnel. The sea water desalination installation at Marassi will use Reverse Osmosis to produce 7,500 m³/day of potable water as well as operation and maintenance of the plant for one year. Previously, Metito installed a 5000 m3/d Reverse Osmosis plant and a 3000 m3/d Sewage treatment plant at the same resort. City Stars project on the other hand involves a BOT scheme for a 4500 m3/d Desalination plant and a 3000 m3/d Sewage treatment plant. Metito’s services, in all sites, follow the stated environmental regulations and aim at lowering energy consumption per cubic meter of produced water.

To cater for the high water demands expected this summer at various areas around Egypt, Metito will also be accommodating immediate delivery of temporary desalination plants.

It is estimated that sub-Saharan Africa’s infrastructure needs exceed US$93bn annually for the next few years, according to the Africa Infrastructure Country Diagnostic. From transport to power to ICT, the continent’s massive infrastructure deficit is limiting its growth potential, with governments alone unable to fund these projects. However, one way of financing them is through public-private partnerships (PPPs).

In March, UAE-based water solutions company Metito signed a PPP agreement for a $75m water project with the Rwandan government. The project will develop a new water supply plant to serve 40% of Kigali’s potable water

How we made it in Africa speaks to Metito’s managing director, Rami Ghandour, about how PPP projects such as these generate returns for private companies and why success in Africa requires an in-depth understanding of the market.

How exactly are returns generated on a PPP project like this?

For a project of this nature, revenues to the developer [in this case Metito] are generated over the life of the project (contract period), which could be up to 30 years. The developer submits an invoice to the client [in this case the Rwandan government] for services rendered, which is the agreed tariff multiplied by the total volume of water consumed by the client. The method of calculation can vary depending on the tariff structure agreed with the client, whether it is a flat tariff with a guaranteed off-take, or a tariff that is broken down to capture fixed costs (which do not vary with consumption), and variable costs which do.

The benefit to the client is that they only pay when the service is available after commercial operation, thus eliminating a significant upfront capital investment they would have had to make if they adopted a traditional procurement process. In essence the client ends up paying for receiving a service (over a longer period of time) as opposed to receiving an asset.

It is also worth mentioning that typically ownership of the asset under a PPP is transferred to the client at the end of the contract period.

Are there any short term returns or benefits?

Typically for a project of this nature, returns are made over a long period of time. We always look at a project’s overall viability in the long run, as such, and as an investor our gains are realised over the life of the project.

Aside from this, we’ll also see returns in the form of additional business leads in Africa. The announcement of this PPP was high profile, and as a result it helps generate new business leads and other potential projects, both PPPs and private partnerships. We have already been in contact with other entities in East Africa following the Rwanda announcement, and we expect some of these to develop into new agreements.

What are some of the major risks facing PPP projects like this? And how can they be mitigated by a private company?

Often one of the major risks and challenges for governments involved with infrastructure projects under PPP models is obtaining financing, especially if a particular technology will be required or the suitable solution isn’t too clear.

The main risk, particularly across most emerging markets, is ensuring the project is sustainable and affordable. A project that is not structured in such a manner could potentially result in payment risk from the off-taker. The Kigali project has been structured in such a way whereby all the necessary analysis has been conducted where all parties are satisfied with the project’s viability, and the government has engaged with us to ensure that documentation provides adequate protection to all parties and appropriate risk allocation.

There are also potential engineering, procurement and construction (EPC) risks such as delay in construction due to most materials being imported. In case some items are missing and you cannot get it from local markets, delays could be expected. In such cases, we make sure the EPC contractors are ahead of schedule and proper project planning is implemented.

With this project this risk is mitigated as we have hands on experience in developing tailored water management solutions for varying environments and markets backed by a proven track record of identifying the correct solutions and technologies, and successful delivery and operation of similar projects. This has aided Metito in forging a strong and longstanding relationship with the IFC for financing such projects, mitigating typical risks of uncertain financing.

Another concern can be that when a private sector company comes in, especially a foreign one, then employment opportunities for locals will diminish. With Metito, we are always committed to developing an operation that is, as much as possible, operated by people from the market we’re working in. This is the case in all our markets globally, including Indonesia, Thailand and Egypt. Our motto is “local presence, global know-how” and it’s something evidenced by the establishing of Kigali Water, the company that will cement our commitment to the people and country of Rwanda.

Are there any major differences between PPP projects with African governments and those elsewhere in the world?

Every country is unique, and as such dealing with each government is different, just as is dealing with various private sector partners.

In some parts of Africa, the concept of a PPP (particularly in the water sector) is fairly new, so there is a bit more effort involved by all concerned to ensure the project is made bankable. Often this means longer lead times in developing such projects. However, with time, and with more projects achieving financial close, there will be enough precedents to make the overall transaction process smoother in the future.

Also there is a need to ensure that the project is affordable; where you find most of the proposed tariff is not equal to, or is less than, the local tariff. Usually the Ministry of Finance guarantees the gap.

What advice do you have for other global companies looking to enter win-win PPPs with African governments?

Doing business in Africa is very different to other parts of the world. Though there are some similarities to other emerging markets, one needs to understand the local requirements of each potential market within the continent, as these could differ significantly. It takes an in-depth understanding of the market, persistence, determination, and patience in turning project concepts to reality.