Australia, Asia, Europe, Africa and the Middle East, and the Americas all have areas of very rapid growth and heavy demands for water management, water supply and wastewater services.  Lets take a look at the specific factors driving the water industry in PBs major market areas and the impacts on our business.

The State of Water in Australia

Australia has certainly lived up to its reputation in recent years as the driest inhabited continent in the world.  With most major cities and extensive areas of regional Australia in the grip of an extended drought, the water industry is tackling increasing demands for water and the need for a sustainable water future, which are sometimes competing objectives.  We are experiencing rapid growth in areas such as water demand management, recycling, stormwater harvesting, aquifer storage recharge, new water sources and, of late, desalination.  This growth, against a backdrop of ageing infrastructure, brings enormous institutional, environmental and technical challenges for the water industry.

PB is active across the total water cycle, providing to the water supply, wastewater and water resource markets from all its offices; and is well placed to service its neighbours in the Asia-Pacific region.  Given the competing demands for water, our water skills are also appreciated in the areas of urban development, energy, industry, and mining, where smart water management is vital.

The water market is estimated to be worth around A$300 million per annum, with New South Wales and Queensland having the lion's share of opportunities.  Relative to population, however, Queensland and Western Australia punch above their weights.  Steady growth in all water markets is expected over the next five years on the eastern seaboard and in Western Australia, particularly in areas such as infrastructure replacement, water recycling and reuse, wastewater treatment, desalination, and urban stormwater, as well as in the areas of mining and industry.

The State of Water in China

China is one of many countries in the world facing water shortages.  The first problem is the shortage of water resources, with the per capita water volume being 2300 m³ - only one quarter of the world's average.  A second problem is that water resources are not distributed evenly in China.  They are particularly scarce in certain regions, most notably in northern China and at certain times of the year, especially in the winter.  In the Hai River Basin, for example, where some of the country's and, in fact, the world's worst water shortages exist, the per capita water volume is 350 m³.  This extremely low volume is one-seventh of China's average, and far below the international standard-the alert level of 1,000 m³ per capita. The Chinese government has spent 100 billions of RMB to construct the South-to-North Water Transfer Project mainly to solve the water shortage problems in this region.  The third problem is pollution, which reduces the value of China's already limited water resources in addition to causing ecological deterioration.

Coverage of PB's services in water resources is currently limited in China.  I believe PB has opportunities in the following areas, and may be able to establish itself as a strong provider of these services:

1. Urban development.  China is in a stage of rapid urbanization.  The growing city population leads to a large market in urban water resources planning and processing.
2. Rainwater and recycled water.   Rainwater and urban wastewater recycling is a large market waiting to be systematically explored, particularly in the north, and will also support sustainable economic and social development.
3. Seawater desalination and saltwater treatment.  Many cities in China have scarce drinking water resources but abundant seawater resources (for example, Qingdao and Yantai on the east coast).  This will be a major potential market with the improvement in water purifying technologies.
4. Wastewater treatment.  Water pollution has worsened over the years as many local governments and industries in China ignored these problems during rapid economic development.  The Chinese government has now adopted a series of measures to improve and strengthen water resources management, and has invested in an increasing number of wastewater treatment facilities.  The future of this area is very promising.

The State of Water in the UK

The water market in the UK is best described as "mature".  The past two decades have seen significant investment in improving drinking water and wastewater treatment standards in line with European Union Directives.  Over the past five years, the focus has moved towards river water quality with investment in increasing capacity and performance of combined sewage overflows (CSOs) and managing water demand and leakage in the distribution system.

There has also been significant activity in the flood management sector due, in part, to recognition that in our era of sea level rise and changed rainfall patterns, flooding in the future will be inevitable in some areas.  A programme of capital works focuses on improving the ability of flood embankments and associated structures to minimize damage to property and risk to people.  More sophisticated flood warning systems are key in this regard, as is investing in moving people at times of significant risk   Flood management is one of PB's areas of strength in the water sector, including the modeling and design of flood alleviation projects, and we have been retained over many years by the Environment Agency to advise on flood warning strategies and implementation.

An area of growing importance is the management of future water demands arising from increased density of population in southeast England and reduced rainfall patterns in this region, giving rise to the potential for new water supply reservoirs and/or desalination projects in addition to conventional demand management, such as domestic metering, leakage repairs and hose pipe bans.  Related to population growth are the water impacts of development projects.  A particular niche PB has penetrated in this context is the application of sustainable urban drainage systems (SUDS) and use of passive forms of treatment to manage urban run-off and treatment.  Our use of settlement and reed bed treatment systems to mitigate pollution impacts, flood balancing and control, and of infiltration systems when appropriate puts us at the forefront of modern urban drainage and pollution control.  This position extends to groundwater pollution management, in which our expertise in bioremediation and natural attenuations has been the subject of several industry awards.

In spite of the current and future issues, there are and will continue to be relatively few opportunities for the design and construction of new water infrastructure.  The emphasis will be on maintenance-related improvements and specific one-off projects permitted by the regulatory reviews (all privatized water companies are publically regulated on a five year cycle), although there will be an increasing market for consultants in terms of flood management and other climate change implications.  Significant changes in the procurement of consultants and contractors have taken place in the UK since privatization, however.  The net result is that a considerable amount of work is being put out under a relatively small number of large alliance contracts.  Consultants and contractors are now partnering to service these contracts and even merging to provide a one-stop-shop and differentiate themselves from other alliances.

Elsewhere in Europe, water markets are either very local or subject to large concession agreements.  In the Middle East, PB has been very successful in the thermal desalination market as well as management of the general infrastructure provision.  Africa has extensive needs in relation to water, but is severely hampered by the lack of funding relative to the continents requirements.

The State of Water in the USA

One of PB's strategic thrusts is a focus on water services in the states of California, Texas and Florida, where almost 80,000,000 people reside (over 26 percent of the country's population).  Each of these three states is growing at a rate of approximately 420,000 people per year - a far higher growth rates than in any of the other states.  All three states are already experiencing water shortages, so are directing efforts towards finding additional sources of water and increasing the efficiency with which water is used.  In Florida, the traditional source has been groundwater and the first generation of additional sources is mostly surface waters.  The reverse holds true for Texas.  All three states are already using desalinated brackish water and are in the early stages of developing seawater desalination.  Another major thrust, especially in Florida and California, involves the reuse of highly treated reclaimed wastewater and captured stormwater for various forms of irrigation, industrial and commercial water use, and to increase the recharge rates to drinking water aquifers.  PB staff have been active in all these areas.

Many of the states in the Northeast and the industrial areas of the Midwest are showing little or no population growth.  Much of their water and wastewater work is focused on maintenance and restoration of existing facilities.  A particular concern is the gradual degradation of many buried sewer and water supply pipe systems.  Due to their urban setting, digging these systems up in order to repair or replace them is extremely expensive and disruptive to the surrounding communities.  PB has a long tradition of expertise in trenchless technologies (methods of installing and repairing buried facilities without digging a trench), and we are extending this tradition through development of new technologies and business partnerships that focus specifically on cost effective methods for detection and repair of damaged pipes.

In many areas of the country, the water and wastewater treatment markets are changing in response to improving membrane treatment and disinfection technologies, which improve protection against contaminants and pathogens in drinking water and reclaimed water.  There is also a strong focus on reducing the rate at which nutrients and other contaminants are discharged to lakes and rivers.  This program, mandated by the federal government, often requires upgrades to stormwater management systems, improvements to wastewater treatment systems, elimination of CSO discharges, and reduction of wastewater discharges through reuse of reclaimed water.  In addition to water and wastewater systems, drainage and flood control are in the spotlight.  River engineering, stormwater management systems, combined sewer overflow (CSO) tunnels, telemetry, SCADA, flood warning systems, and preservation and maintenance of wetlands will be implemented in various combinations to preempt the effects of flooding and contain flood damage to the greatest possible extent.