The International Water Management Institute warns that the explosive global population growth may lead to water wars in much the same way that an imbalance in supply and demand for oil have lead to oil wars. Several dozen Texas municipalities threaten to file claims for $500 million against Mexico for missed water payments. The U.S. Department of Justice has initiated its “Water 2025” program which funds water development in order to “help prevent conflict over water in western states”.

One solution to the imbalance in supply and demand for water is to rebuild the nation’s antiquated infrastructure, some of which was built during the Lincoln administration. Since as much as 50% of the water intended for delivery to consumers is lost en route, the EPA estimates that $138 billion is required to be spent by 2016 to upgrade or replace the water infrastructure.

Another solution is to invest in desalinization which may be an attractive alternative to overused groundwater sources. Similarly, technology to treat wastewater may alleviate the water shortage. However, these investments may be so large that they can only be financed by eliminating the sales tax exemption on bottled water, raising property taxes and accessing a fee on real estate sales. 

The municipal water authorities’ requirements to comply with clean water regulation, rising security concerns and preparing to serve growing populations will only raise the demands for capital.

Conference Flash Points
How will this tremendous demand for capital be satisfied?

• Rate Increases
• Municipal Bond Issuance / Private Activity Bonds
• Project Finance / Structured Finance
• State Revolving Loan Funds
• Equity Issuance
• Privatization

Which funding sources are most appropriate? . What are the political dimensions of each alternative? . How interest rate sensitive are each of the options? . What are the risk characteristics of the various financing tools? . How accessible are these various means of financing? . What legal exposures do utilizing these various mechanisms present?

This conference will provide insight into how leading water companies are positioning themselves in this enormous sector. Don’t miss this rare opportunity to listen to leading executives and analysts discuss how the water industry is positioned to navigate the road ahead.

Today’s Water Executives Must Strive to Maximize ROI 

Water executives are beset with numerous mandates: They must comply with increasingly stringent clean water regulations, ensure the security of their water systems, invest in desalinization and wastewater treatment and make huge capital commitments to rebuild their antiquated water delivery systems. According to the Environmental Protection Agency, water authorities will have to expend $151 billion by 2020 in the water delivery supply chain. 

The scope of these investments is especially onerous for an industry that is heavily regulated and dependent on limited revenue sources. In order to meet these financial commitments, water executives must be extremely careful in crafting their entities’ financial structure; in choosing their financing methods; in assessing the various government programs; and, in committing to long-term interest rate schedules. 

Today’s water executive must consider the merits of privatizing and partnering with service providers. Forward thinking executives will assess the merits of developing supplemental revenue streams in the form of water treatment services, contract services and bottled water.

Don’t miss this unique opportunity to listen to leading industry executives, regulators, and financiers discuss best practices for financing growth, winning rate increases, developing non-traditional revenue streams and maximizing their returns on investment.

We look forward to seeing you in New York on November 15, 2004.

David Wanetick
Managing Director
Gateway Reports 
&
The Wall Street Transcript