Veolia environnement SA

Current Section || 

 

 

Compagnie Générale des Eaux was renamed Vivendi in May 1998, while retaining its former name for water and wastewater activities. In July 2000, Vivendi Universal sold 28% of its holding in Vivendi Environnement (VE) via a listing on the Paris Bourse and a further 9% in 2001. Vivendi has in turn been renamed Vivendi Universal (VU) and is concentrating upon the telecommunications and media sectors. Following VU’s financial problems in 2002, the company sold a further 43% of VE’s equity to a series of French institutions and as a result, VE’s results (and debt) are no longer consolidated into VU’s. VE has been renamed Veolia Environnement (VE) so as to differentiate between the two companies. Water activities were grouped under Veolia Water. After a further sale in December 2004, VU’s share of VE fell to 5.3% and was fully divested in 2006. In 2004, after a recapitalisation exercise, the Générale des Eaux name was revived to become the holding company for Veolia Water’s French activities.

 

Veolia Environnement is currently in talks with France’s Caisse des Depots et Consignations Group about acquiring its Transdev subsidiary. If this goes ahead, a new transportation company will be formed which would then seek to obtain a market listing.

 

Veolia Environnement, profit and loss account

 

Y/E 31/12 (EURmillion)

2006

2007

2008

2009

2010

Turnover

27,941.0

31,574.1

35,089.6

33,951.8

34,786.6

Operating profit

2,124.2

2,461.1

1,927.2

1,981.8

2,120.3

Net profit

758.7

927.9

405.1

584.1

581.1

Earnings/share (EUR)

1.89

2.13

0.88

1.24

1.21

Dividend/share (EUR)

1.05

1.21

1.21

1.21

1.21

 

Water

 

Y/E 31/12 (EURmillion)

2006

2007

2008

2009

2010

Operations

N/A

7,110

7,720

7,899

8,667

Works

N/A

3,818

4,838

4,657

3,461

Turnover

10,088

10,927

12,334

12,318

12,128

Operating profit

1,161

1,268

1,187

1,145

1,020

 

After a poor first half performance in 2011, it is anticipated that VE will be re-examining various non-core international activities. For example, the Gabon contract is currently under review.

 

Veolia Water Solutions & Technologies, breakdown of revenues

 

Y/E 31/12 (EURmillion)

2006

2007

2008

2009

2010

Revenues

1,900

2,100

2,500

2,500

2,148

Municipal clients

57%

61%

65%

61%

55%

Industrial clients

43%

39%

35%

39%

45%

Solutions

34%

38%

31%

29%

36%

Design and build

66%

62%

69%

71%

64%

Europe

66%

50%

43%

40%

45%

Africa & Middle East

11%

27%

37%

38%

28%

Americas

13%

14%

12%

16%

19%

Asia-Pacific

10%

9%

8%

6%

8%

 

Générale des Eaux (GDE) was founded in 1853 and started the privatisation of France’s water sector by winning a concession for water supply to Lyon in that year, subsequently to Nantes (1854), Nice (1864) and gaining the first of a series of concessions serving Paris in 1860. In 1884 GDE secured the first wastewater treatment concession, serving the Reims municipality and pioneering the use of ozone to sterilise water at Nice in 1909. VE is also a pioneer in the development of the international water market. Its subsidiary Compagnie des Eaux pour l’Etranger (CEE) was set up in 1879 for international water contracts. CEE took over the water supply concession for Venice in 1880 and further contracts were gained in Verona, Bergamo, La Spezia and Naples. The company set up Compagnie des Eaux de Constantinople for water supply to Istanbul in 1879, and in 1882, CEE gained the water supply concession for Lausanne in Switzerland and Oporto in Portugal. After the First World War, VE decided to restrict its contracts to France. As a result, contracts were either wound up or nationalised during the inter-war years. 

 

VE developed its presence in water engineering through the acquisition of SADE in 1918 and Tuyaux Bonna in 1924. Since the 1930s, the French water sector has gradually been privatised with VE being the dominant player in the market. From 1967 onwards, VE has diversified, first into waste management, then energy and more recently into construction, property and media and telecommunications.

 

VE entered the Spanish water market in competition with FCC and Aguas de Barcelona. Professional Services Group of the USA was acquired in 1981 to address the American market and General Utilities Plc was set up in 1986 in anticipation of the privatisation of Britain’s water services. Since 1992, the company has been gaining water and sewerage concessions on a global basis. By 1995, VE had 2,300 operating contracts serving 4,000 municipalities in France. VE reduced the number of subsidiaries in France from 40 to one. The company’s domestic market strength has meant that until recently, it could take a more relaxed attitude towards the international water markets than Suez.

 

Approximate breakdown of water revenues by region

 

EURmillion

2006

2007

2008

2009

2010

France

4,802

4,927

4,884

4,751

4,789

UK

552

573

672

640

626

Germany

1,283

1,277

1,377

1,372

1,435

Rest of Europe

1,279

1,413

1,680

1,619

1,710

Czech Republic

N/A

N/A

700

N/A

N/A

Italy

N/A

N/A

300

N/A

N/A

Benelux

N/A

N/A

250

N/A

N/A

Scandinavia

N/A

N/A

200

N/A

N/A

Spain

N/A

N/A

120

N/A

N/A

Poland

N/A

N/A

50

N/A

N/A

USA

641

539

612

691

686

Rest of Americas

122

148

185

N/A

N/A

Africa and Middle East

705

1,017

N/A

N/A

N/A

Middle East

N/A

N/A

862

858

492

Sub-Saharan Africa

169

189

N/A

N/A

N/A

India

2

2

N/A

N/A

N/A

South East Asia

579

733

977

1,162

N/A

Asia

 

 

 

1,162

1,331

Australia and New Zealand

124

300

359

256

262

Rest of the World

N/A

N/A

952

971

798

Total

10,088

10,927

12,558

12,318

12,128

 

The data used here was derived using the various country and regional breakdowns in the 2008 Reference Document and then reconciling them with the regional breakdowns in the Veolia Eau 2008 Rapport de Activities. This was not possible with the 2009 reports.

 

The 2008 European country breakdowns are estimates based in the graphics in the 2008 Sustainable Development Report. The 2005, 2006 & 2007 breakdowns are from the Veolia Water AMI Annual Reports (AMI is Africa, Middle East & India). Reporting by area was changed in 2007-08 with "Rest of the World" from then on representing India and Sub-Saharan Africa. Middle East and Rest of The World revenues were EUR314million and EUR851million respectively in 2007.

 

VE – Highlights

 

1853:

Compagnie Générale des Eaux (GDE) wins concession for water supply to Lyons

1880-82:

Water supply concessions to Venice and other cities

1884:

Wastewater treatment concession for Reims

1967:

Waste-to-energy projects

1972:

Water activities in Spain

1980:

Acquires CGEA (waste management and transport)

1981:

Acquires Professional Services Group of the USA

1986:

General Utilities Plc formed for UK operations

1987:

Licence for France’s second cellular telecoms system

1987-88:

Acquires construction and property companies

1993:

Buys out Eau et Ozone

1995:

GDE’s first loss – due to property & construction

1998:

Générale des Eaux renamed Vivendi

1999:

Acquires US Filter and Berliner Wasser, formation of Vivendi Water

2000:

Partial flotation of Vivendi Environnement (VE) from Veolia Universal

2002:

Deconsolidation of VE and VU

2003:

VE renamed Veolia Environnement, sale of Everpure

2004:

Sale of VE’s stake in FCC, sale of US Filter & Culligan, VU’s holding falls to 5% 

2005:

Acquisition of companies in Italy and Germany

2006:

VU’s last stake sold, Southern Water sold, United Water JV bought

2007:

Desalination contracts in Saudi Arabia, Oman and Australia

2008:

Strategic acquisitions in Japan

2009:

Unwinding the SE / VE contracts in France

2010:

Acquires UU’s European activities, Hong Kong contract

2011:

Strategic review pondered

 

Water activities (excluding Proactiva)

 

VE: overall water and wastewater activities

2006

2007

2008

2009

2010

Treatment efficiency of wastewater treatment plants

90%

90%

91%

92%

93%

Wastewater treated

78%

80%

81%

N/A

 

Water used (million m3/pa)

369

453

530

542

562

Customers equipped with a water meter

93%

95%

N/A

N/A

 

Efficiency of water systems – Worldwide

78%

75%

77%

75%

75%

Efficiency of water systems – Europe (EU 15)

81%

82%

83%

83%

83%

 

Water efficiency in Europe in 2003 for its ongoing activities was 83% in 2003. The difference is accounted for by newly acquired concessions operating more run down water assets. Likewise, worldwide water efficiency in 2007 was 79% net of a new contract serving 1.5million with an efficiency of 15%.

 

Population served in each country

 

Country

Water

Sewerage

Total

Europe

France

24,100,000

16,200,000

24,100,000

Armenia

1,200,000

1,000,000

1,000,000

Belgium

0

1,100,000

1,100,000

Bulgaria

1,400,000

1,400,000

1,400,000

Czech Republic

4,288,000

4,148,000

4,288,000

Denmark

83,000

0

83,000

Germany

5,122,000

5,172,000

5,412,000

Great Britain

3,317,000

990,000

4,307,000

Ireland

0

138,000

138,000

Hungary

268,000

2,222,000

2,222,000

Italy

1,396,000

2,080,000

2,096,000

Malta

290,000

290,000

290,000

Netherlands

0

1,700,000

1,700,000

Poland

385,000

375,000

385,000

Portugal

185,000

275,000

275,000

Romania

2,050,000

0

2,050,000

Slovak Republic

950,000

950,000

950,000

Sweden

50,000

50,000

50,000

Rest of the world

 

 

 

Argentina *

45,000

45,000

45,000

Canada

127,000

238,000

331,000

Colombia *

2,495,000

287,000

2,495,000

Mexico

3,325,000

885,000

3,325,000

Ecuador *

2,280,000

1,732,000

2,280,000

Venezuela *

552,000

0

552,000

USA

7,750,000

6,500,000

14,000,000

Australia

1,945,000

937,000

2,882,000

China & HK

26,930,000

13,660,000

32,980,000

India

750,000

0

750,000

Indonesia

100,000

0

100,000

New Zealand

157,000

345,000

345,000

Philippines

10,000

0

10,000

South Korea

0

410,000

410,000

Gabon

1,200,000

0

1,200,000

Israel

1,400,000

0

1,400,000

Lebanon

0

40,000

40,000

Morocco

2,900,000

2,200,000

2,900,000

Niger

1,600,000

0

1,600,000

Oman

2,650,000

700,000

3,000,000

Qatar

0

530,000

530,000

Reunion

0

160,000

160,000

UAE

130,000

1,435,000

1,735,000

Total outside France

77,330,000

51,994,000

100,816,000

Global total

101,930,000

68,694,000

125,416,000

 

*Proactiva activities

 

People served via Berlinwasser International have not been included. These can be found in the RWE entry. The number served in France has remained effectively constant in recent years, net of re-statements for cross shareholdings with Suez Environnement. The table also excludes VE’s continuing activities in Spain.

 

Stake divestments

 

Approximately USD390million has been raised since 2001 through the selling off of non-strategic minority stakes in asset owning water companies in England and the USA. In the former case, this is also related to preparing for VE’s blocked bid for Southern Water (First Aqua).

 

Company

Country

Holding %

Date

Value (million)

Bristol Water

UK

25

March 2002

GBP23

Mid Kent

UK

21

April 2001

GBP22

South Staffordshire Group

UK

32

October 2002

GBP85

Philadelphia Suburban

USA

17

September 2002

USD200

Southern Water

UK

25

April 2006

EUR89

 

In addition, some USD3,193million has been raised from the sale of peripheral activities in the US Filter group since 2001. Purchasers have been a combination of companies active in water systems engineering and private equity houses.

 

Division

Vendor

Date

USDmillion

Surface Preparation

International Surface Preparation

July 2003

130

Waterworks distribution

JP Morgan/TH Lee Partners

September 2002

620

Plymouth Products

Pentair

September 2002

125

Filtration and Separation

Pall

February 2002

360

Johnson Screens

Weatherford International

October 2001

140

Culligan

Clayton, Dubilier & Rice

June 2004

610

Everpure

Pentair

December 2003

215

Systems & Services

Siemens

May 2004

993

 

These sales involved a total write-down of USD4.5million between 2000 and 2004. VE’s water revenues in the USA will be USD700million pa post these divestments.

 

International alliances and JVs

 

OMSA: A JV in Mexico with ICA, serving 7.8million people in the country.

 

Proactiva: Proactiva Medio Ambiente is a 50:50 JV between VE and FCC for all water and waste management contracts in Latin America. Is still being used post the FCC stake sale.

 

RWE/Berliner Wasser Betriebe: A joint bid gained the Budapest sewerage concession in 1997. Since 2000, it has been used on a number of occasions.

 

China: VE has a number of local partners in China. Major contracts have recently been gained with Citic Pacific and Beijing Capital Group. 

 

EBRD investment: In 2007, the EBRD (European Bank for Reconstruction and Development) invested EUR90million to acquire 10% of Veolia Voda, which while active in C&EE is primarily VE’s vehicle for the Russian Federation and the Ukraine. A 6.88% was acquired by the EBRD in 2009 for EUR70million.

 

IFC investment: In 2007, the International Finance Company (IFC) and France’s Société de Promotion et de Participation pour la Coopération Economique (PROPARCO) acquired 19.45% in Veolia Water AMI, the holding company for VE’s water activities in Africa, the Middle East and the Indian sub-continent.

 

MENA joint venture: A JV between VE (51%) and Mubadala Development Company (49%) was formed in October 2008 to develop water & wastewater contracts in the MENA region. MDC is owned by the Government of the Emirate of Abu Dhabi and has a series of investments designed to diversity the Emirate’s economy.

 

Veolia MIG Greece: A JV between VE and Marfin Investment of Greece for investing in projects in Greece and the Balkans was unveiled in December 2009.

 

France

 

Générale des Eaux started operating in France in 1853. By 1953, the company provided water to 8million people and by 1980 it provided water to 19.8million people and sewerage to 6.9million. In 2006, the figure was 24.5million water customers and 16.2million sewerage and sewage treatment customers. The numbers served has fallen from 26million and 17million respectively in 2004 due to joint contracts with Suez being broken up. Numbers served in 2010 were 24.6million for water and 16.7million for wastewater, serving 2,019 WTWs and 2,030 WWTWs Revenues from these contracts in 2009 were EUR614million. VE has retained the Générale des Eaux name for its operations in France, which currently has 4,000 contracts with 8,000 municipalities in France. The sewerage market is seen as growing at an appreciably faster rate than the water market, because of the low penetration of sewerage networks and sewage treatment in France in the wake of compliance work for the EU’s Urban Waste Water Treatment Directive.

 

In France, the company has to concentrate on consolidating its water contracts in an unprecedented competitive and critical atmosphere. As part of the company’s responses to these challenges, customer service charters for 10million people were issued by the end of 1996, with all customers in France being covered by 1999. The unbundling of the 11 contracts jointly held between Veolia and Suez was completed in 2010 and will result in EUR150million in revenues going to Suez and EUR136million going to Veolia. 

 

Générale des Eaux:

2001

2002

2003

2004

2005

Contract renewal rate

77%

92%

80%

>90%

>90%

 

New contracts gained in each year have at least cancelled out contract losses in each of these years. For example, 53 contracts were lost in 2003, but 35 new contracts were gained. The average weighted time before the expiration of long term contracts is 12 years. Total revenues for contracts renewed in 2006 are EUR955million, including an 18 year water and wastewater contract for Narbonne (EUR170million), a 12 year water provision contract for Saint Omer (EUR26million) and a wastewater treatment contract gain in Angers Loire (five years, EUR21million). Total revenues for contracts renewed in 2007 were EUR920million, including the community of Nice Côte d’Azur area (12 years, EUR75million), the city of Beauvais (12 years, EUR38million) and the city of Macon (10 years, EUR59million). In 2008, 175 contracts were renewed (86 for water and 89 for wastewater) including a 18 year EUR242million water contract for the Cergy Pontoise area. In 2009, a EUR156million 20 year BOT contract was signed with Chartres Metropole for a 164,000 PE WWTW (extendable to 200,000 PE) incorporating a sludge energy co-generation facility. 223 contracts were renewed in 2009. 

 

The Paris contract ended in December 2009, having generated revenues of EUR143million in that year. The SEDIF contract, serving 4.3million people in the Greater Paris area was renewed for 12 years in June 2010 and the new contract will be worth EUR250million pa against EUR360million pa for the previous contract.

 

New contracts, 2009

Contract value (EURmillion)

Contract duration (years)

Chartres

156

20

Public Authority of Embrunais

62

30

Roquebrune Cap Martin

50

20

Royan

17

10

 

Retained contracts, 2009

Contract value (EURmillion)

Contract duration (years)

La Roche-sur-Yon

66

12

 

In March 2010 GDE sold to LDE: Société des Eaux du Nord, Société Nancéienne des Eaux, Société des Eaux de Versailles et de Saint Cloud, Société Martiniquaise des Eaux, Société Guyanaise des Eaux, Société Stéphanoise des Eaux, SERAM and Société Provençale des Eaux and acquired Compagnie Générale des Eaux of additional interests in Société des Eaux d’Arles, Société des Eaux de Marseille and parts of Société Industrielle du Littoral Méditerranéen and Bronzo Environnement.

 

Reunion

 

2010

Reunion North

20 year concession

160,000 sewage treatment

 

The French dependency awarded a concession to Veolia Water, along with OTV, Sogea, SBTPC (Vinci, Italy) and Egis Eau in May 2010. The concession will generate revenues of EUR270million for Veolia Water, EUR75million for the construction of a new WWTW and EUR195million for its operation. The facility will enter service in 2013.

 

Denmark

 

Along with one long standing contract for water provision to 60,000 people via VE’s I Krüger AS, VE gained the first wastewater management contract in Denmark in February 2006. 

 

2006

Allerød

8 year management

23,000 sewage treatment

 

The contract covers managing three WWTWs, the sewerage system and overhauling the municipality’s sludge recycling system for agricultural application.

 

The Netherlands

 

2002

Delftland

30 year DBFO

1,700,000 sewage treatment

 

The EUR1.5billion contract was won by the Delfluent Consortium, led by VE (40%); two Dutch publicly owned water distribution companies, Delta Water (20%) and Waterbedrijf Europoort (20%), Rabobank (10%), Heijmans Beton-en Waterbouw (5%) and Strukton (5%). The contract started in 2003 and involves operating the working plant at Houtrust (0.4million PE) and developing the new EUR258million 118million m3 pa plant at Harnaschpolder (1.3million PE) both entering service in March 2007. VE (11%) is leading a JV, along with Rabobank & Elvides (29%), Delta Water (25%) and Waterbedrijf Europoort (25%) for operating the facilities and 90km of sewerage network. Delftland serves The Hague and surrounding areas. VE sold 29% to Rabobank and Elvides in 2010 for EUR118million.

 

Spain: FCC

 

FCC is a Spanish construction and utility company, which dominates the municipal waste collection market. In October 1998, VE acquired 49% of B1998, the holding company for the Koplowitz sisters’ interests in FCC, which in turn holds 56.5% of the company. In July 2004, VE sold its 49% stake in B1998 to a company controlled by Mrs. Esther Koplowitz. The transaction reduced VE's net indebtedness by EUR1.1billion, with a total cash payment to VE of EUR916million. Ve acquired its stake in FCC from Vivendi in 2000 for a total consideration of EUR691million. VE has retained Gruppo General des Aguas (water and sewerage) which in 1997 served 3million people in Spain and had net sales of FRF1billion. The Proactiva joint venture in Latin America is to continue for the time being. 

 

2009

Madrid

4&2 years management

3,000,000 wastewater

 

This contract is initially worth EUR16million and covers the management of Canal Isabel II’s South wastewater treatment plant, which handles 560,000m³ per day. A sludge digester ensures that the facility is self-sufficient for energy.

 

2007

Campo Dailas

17 year BOT

Water desalination

 

In May 2007, VE gained a EUR128million (EUR78million to VE) desalination contract in southern Spain, with an 18 month construction and 15 year operation period.

 

Portugal

 

275,000 people (113,000 customers) were served in 2007, generating revenues of EUR29.8million.

 

1995

Mafra

25 year concession

45,000 water & sewerage

 

This is VE’s first contract in Portugal. The 25 year water provision concession has sales of FRF25million pa (45,000 people, 22,000 subscribers) and will be extended to wastewater. This award has been seen as somewhat contentious, because it has been alleged that this contract has been set up as a loss leader by VE with its water fee tender of EUR0.46/m³, compared with the current price of EUR0.65/m³ and Agbar’s tender of EUR0.48/m³. The municipality intends to invest EUR200-250million on improved sewerage systems over the length of the contract.

 

In 2008, a 15 year wastewater services management contract was agreed with Mafra, worth EUR93million.

 

1995

Ourem

31 year concession

40,000 sewerage

 

The concession to serve Ourem (110km north of Lisbon, and 80km from Mafra) was gained in April 1995 (40,000 people, via 15,000 connections), with a turnover of EUR1.8million pa.

 

1996

Frielas

30 year concession

70,000 PE sewerage

 

In Frielas, a suburb of north Lisbon, VE is involved in the construction of a wastewater treatment plant. Construction started in March 1996 for a EUR43million facility. This was completed at the end of 1998 and serves the equivalent of 70,000 people through a concession contract.

 

2000

Valongo

30 year concession

80,000 PE water and wastewater

 

VE was awarded the concession in July 2000 with a turnover of EUR7million pa. Valongo is 20km east of Porto. This contract operates 2 wastewater treatment plants, 200km wastewater collectors and a 480km water network. Aguas de Valongo serves 31,000 subscribers.

 

2001

Paredes

35 year concession

60,000 PE water & wastewater

 

VE was awarded the concession in January 2001 with a turnover of EUR4million for 2002, rising to EUR7million pa. Paredes is 40km east of Porto. This contract operates one wastewater treatment plant, 80km wastewater collectors and a 100km water network. SBPAR serves 5,000 subscribers.

 

Veolia Water in northern Central Europe (2007 figures)

 

Country

Revenues (EURm)

People - Water

People - Sewerage

Poland

6

3,400,000

4,000,000

Czech Republic

470

60,000

70,000

Slovene Republic

141

2,000,000

270,000

Slovak Republic

58

600,500

1,000,000

Total

676

6,060,000

5,340,000

 

 

The Czech Republic

 

Veolia Voda (www.veoliavoda.cz) serves 4.3million people in 1,200 municipalities, along with 40 industrial water outsourcing contracts. Revenues in 2005 were CZK11billion. In 2002, VE acquired Bouygues’ 50% holding in their CTSE JV. 1.JVS was sold to Energie AG (Austria) in 2008, which served 220,000 people.

 

2006

Prostejov

25 year management

70,000 water & sewerage

 

VE will manage the Prostejov Water Company’s facilities in the Moravian Region and the contract will generate EUR139million.

 

2006

Slany

15 year management

21,000 water & sewerage

 

This contract is adjacent to the Kladno-Melnik contract area. Total revenues will be EUR30million.

 

2005

Hradec Karlove

30 year concession

149,000 water & sewerage

 

The contract covers 100,000 people in Hradec Kralove, Eastern Bohemia’s regional capital and 50,000 in 100 other municipalities in the region. The contract will generate revenues of EUR525million. Kralovehradecka Provozni AS had revenues of CZK534million in 2006. 

 

2004

Kladno-Melnik

20 year concession

331,000 water & sewerage

 

Revenues for the contract will be worth EUR600million. Stredoceské Vodárny AS generated revenues of CZK614million in 2006.

 

2004

Eastern Moravia

30 year concession

157,000 water & sewerage

 

In June 2004 Veolia signed a 30 year contract with Vodovbody a Kanalizace Zlin (VAK Zlin) the water public authority for the eastern part of Moravia in the Czech Republic. The area includes 80 districts. The contract will generate total revenues of around EUR360million.  Revenues in 2006 were CZK374million.

 

1999

V Klatovy

10 year concession

50,000 water & sewerage

 

1996

Pilsen

12 + 10 year concession

230,000 water & sewerage

1996

Sokolov

10 + 16 year concession

130,000 water & sewerage

1999

Aqua Pibram

10 + 10 year concession

80,600 water & sewerage

 

Vodarenska and Kanalizanci AS Plzen (VP) serves the city of Pilsen on a lease with O&M work. The contract is currently for water provision (230,000 people) plus wastewater (180,000 people), the latter through a new sewage treatment facility opened in 1997. Industrial and domestic customers pay an equal amount for water and prices are below that seen in most of the Czech Republic. During 1997, the contract was extended to cover a further 72,000 people in the northern part of Pilsen. Allied with the sewerage expansion, this boosted 1998 turnover to CZK700million which was steady at CZK737million in 2006. In 2000, the Pilsen contract was granted a 10 year extension to 2017. In 2004, VP extended its service areas in the two latter districts with the municipalities of Štenovice, Cizcice and Ejpovice.

 

The Aqua Pibram concession was gained in December 1999. Aqua Pibran was renamed 1.ScV AS after the merger with VAK Ricany u Prahy, s.r.o., which added 4,600 people. 1.ScV had revenues of CZK274million in 2006, while the Sokolov contract gained a 16 year extension. The Aqua Pibram concession contract was extended by 10 years in 2003, with revenues of EUR4million pa. 

 

1998

Northern Bohemia

15 year concession (1995)

1,238,000 water & sewerage

 

Hyder’s stake was sold for CZK795million (USD26.7million) to VE, giving the company 43.17% of Severomoravske Vodovy a Kanalizace Ostrava (ScVK), with Severoceske Vodarensky Svaz (SVS), formed by the client towns, holding a further 34.7%.  At the start, 1.07million of the inhabitants were connected to the mains water supply and 0.87million to the sewerage network. ScVK’s turnover to March 1999 was CZK1.1billion and rose to CZK5.53billion in 2006.

 

2000

Olomouc

20 year concession

140,000 water

 

This concession was awarded to Stredomoravaska Vodarenska AS (SMV) in March 2000. It is the first PSP contract in the region. Total net sales for the contract will be EUR200million. 2006 revenues were CZK395million.

 

2001

Prague

28 year concession

1,465,000 water & wastewater

 

VE and AWG paid EUR174million for a 66% stake in PVK, and VE subsequently bought out AWG’s stake. In 2002, the remaining 34% of shares were acquired from the municipality. The 13 year concession will generate EUR60million in 2001 and EUR120million in subsequent years. The contract will concentrate on service quality improvement and upgrading water and sewage treatment to EU standards. The concession was extended to 28 years in 2002. Leakage was reduced from 47% in 2001 to 23% by 2006. Revenues in 2006 were CZK4.6billion.

 

Slovakia

 

These contracts, awarded in May 2006, are the first international water tenders in the Slovak Republic. Water and wastewater services will be provided to 950,000 people in 750 towns, villages and districts in Central and Northern Slovakia.

 

2006

Banska Bystrica

30 year concession

660,000 water & wastewater

 

This is a concession with the Banska Bystrica Water Company (StVS) which will generate revenues of EUR1.4billion over the contract. The town of Banska Bystrica has 85,000 people, with 660,000 in the region.  

 

2006

Poprad

30 year concession

290,000 water & wastewater

 

Poprad Water Company (PVS) was awarded the concession, with annual revenues of EUR17million and a total contract value of EUR566million. There are 57,000 people in the town of Poprad, which is part of the Presov region in the North East of the country.

 

Hungary

 

VE aims to increase its share of the market in Hungary from 20% to 50% in the medium term. In 2007, it served a total of 2.3million people.

 

2006

Erd Region

25 year concession

100,000 water & sewerage

 

Érd és Térsége Víziközmû Kft, a joint venture with the Budapest Water Company was set up in May 2006 for providing water and wastewater services to 100,000 people in the seven districts of Erd which lies to the south of Budapest. VE and Budapest Water will hold 26% of the operating company with the municipalities retaining 74%.

 

2004

Salgótarján

20 year O&M

44,000 sewerage

 

The Salgótarjáni Csatornamû Kft contract covers the operation of a sewage treatment works and sewerage system serving the towns of Salgótarján, Kazár, Mátraszele and Vizslás.

 

1994

Szeged

15 year concession

168,000 water & sewerage

 

The Szeged contract had a HUF1.16billion turnover (HUF40million) in 1995. The 15 year contract was awarded to VE’s 100% held subsidiary Servitec, which holds 49% of Szegedi Vizmü, the holding company for the contract. Currently 60% of the city is connected to the sewerage network. The contract was gained after VE had been awarded a HUF200million water treatment plant construction contract in 1992. The company has been profitable since 1996 and water consumption has been reduced by targeting leakage, installing meters and a progressive pricing policy.

 

2006

Budapest

4+4 years, DBO

1.,500,000 wastewater

 

In 2006 Degrémont and Veolia, along with Hídépíto and Alterra, two local civil works companies, gained a EUR290million contract to build (EUR249million) and operate for four years (EUR40million) a 350,000m3/day wastewater treatment works (wet weather capacity 900,000m3)  at Csepel to serve 1.5million people in the Budapest area. The facility entered service in 2010 and will be operated by them until 2014.

 

1997

Budapest

25 year concession

1,900,000 sewerage

 

The management company formed by VE (35%), BWI (35%) and EBRD (30%) took a 25.1% stake in Fövarosi Csatornásási Müvek Rt., Budapest’s wastewater company. Secondary treatment capacity has increased from 220,000m3/day in 2000 to 280,000m3/day in 2004 (76% being used), with the number of customer connections rising from 137,813 to 162,753. 

 

Poland

 

2006

Wozniki

10 year management

10,000 water

 

VE’s PWIK Wozniky gained the contract for the town of Wozniky in Upper Silesia in February 2006. 

 

2001

TGMS

25 year concession

75,000 water & sewerage

 

The contract to operate the Tarnowskie Gory and Miasteczko Slaskie water company was gained in December 2001. The company manages the municipal water and wastewater services for 75,000 people in the two towns. VE’s initial 33.85% stake increased to 63.5% in 2003. The contract will generate total revenues of EUR125million.

 

Romania

 

2000

Ploiesti

25 year concession

250,000 water

 

The concession was awarded to Apa Nova Plotesti SRL (73% held by VE, 27% by the municipality) in April 2000. EUR26million will be spent on network upgrading and renewal over 15 years and EUR47million on treatment systems over 25 years, with a turnover of EUR8million pa.

 

2000

Bucharest

25 year concession

1,800,000 water and wastewater

 

The concession to modernise Bucharest's water supply was granted to Apa Nova Bucuresti ANB (84% held by VE, 16% by the municipality) in April 2000. EUR210million was invested in the first nine years of the concession out of an expected total of EUR1.05billion, with the proportion of households receiving a continual water supply rising from 39% to 91%. Annual revenues will be EUR80million pa. At the start of the contract, 1.8million people were served with water and 1.67million with wastewater. By 2009, this had increased 2.3million.

 

Acquisition of United Utilities’ C&EE activities

 

VE acquired UU’s C&EE contract portfolio in April 2010, with contracts in Poland and Bulgaria.  

 

Poland

 

1999

Biesko Biala

12 year concession

300,000 water and wastewater

 

In November 1999, UUI and International Water entered into a strategic partnership with the municipality of Biesko Biala and acquired 33.2% of Aqua SA, the utility providing water and wastewater services to the city (200,000) and 12 municipalities in the surrounding area. The concession is being supported by the World Bank.

 

Bulgaria

 

  1999

Sofia

25 year concession

1,400,000 water and wastewater

 

The upgraded Kubratovo WWTW has a design capacity of 500,000m3 per day and a typical throughput of 400,000m3 per day. In 2009-11, it was upgraded further at a cost of EUR33million to take in energy recovery and tertiary treatment. VW holds 77.1% of Sofiyska Voda AD.

The Russian Federation

 

In 2007, the EBRD (European Bank for Reconstruction and Development) invested EUR90million to acquire 10% of Veolia Voda, which is active in C&EE and the Russian Federation and the Ukraine. A further EUR70million was invested in 2009, bringing the EBRD’s stake up to 16.88%.

 

2005

St Petersburg

5 year management

2,000,000 water

 

Veolia Water’s SPEP (Société Eau Pure, 51% GDE, 48% Vodokanal & 1% St Petersburg municipality) gained a five year management contract for the city’s left bank water treatment works. This facility handles 1.2million m3/day of water.

 

A partnership with Evraziysky and Eurasian Water Partnership for the development of water and wastewater projects in Russia was signed in October 2006, including acquiring 50% of EWP’s equity. EWP currently has water and wastewater contracts serving Rostov-on-Don (Voda Rostova) and Omsk.

 

Armenia

 

2005

Yerevan

10 year management

1,200,000 water & wastewater

 

A EUR160million contract supported by USD 19million in World Bank funding. The initial emphasis will be in managing water leakage and service extension.

 

United Kingdom

 

Veolia Water UK has controlling holdings in three British Statutory Water Companies (SWCs), asset owning entities that supply water only. VE acquired six SWCs between 1988 and 1990, the most important of which is Three Valleys Water. VE sold its final interest in Southern Water to Southern Water Capital Limited in April 2006 for EUR89.6million.

 

Y/E 31/03/2011 (£million)

Population

Equity Holding

Turnover

Operating Profit

Veolia Water Central

3,000,000

100.0%

239.65

53.10

Veolia Water East

154,000

99.1%

14.68

3.95

Veolia  Water Southeast

163,220

78.7%

18.65

4.16

 

The SWCs were renamed in 2009:

 

Veolia Water Central

Three Valleys

Veolia Water Southeast

Tendring Hundreds

Veolia water East

Folkestone & Dover

 

Three Valleys Water consists of the Colne Valley, Rickmansworth and Lee Valley Water companies, which were merged in 1994. The company grew again following a merger in October 2000 with VE’s North Surrey Water, which was formed in 1973 from four founder companies. The company provides 0.858million m3/day of water to parts of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey, and the London Boroughs of Barnet, Brent, Ealing, Harrow, Hillingdon and Enfield. TVW reached a 41% level of metering by 2011.

 

Tendring Hundreds and Folkestone and Dover are characterised by high levels of domestic metering. 83% of the former company’s domestic customers had meters in 2011, while the latter company aims to have 78% of customers metered by 2015 compared with 55% in 2007. The Folkestone Waterworks Company was formed in 1848, one of the first to take advantage of the Waterway Clauses Act of 1847, and merged with two other companies in 1953 and 1970.

 

Thames Water Services was acquired by Veolia Water UK for EUR115million (GBP78million) in August 2007, with an enterprise value of EUR233million. UK revenues of EUR160million (GBP109million) are anticipated for 2008 (with EUR80million revenues gained in the first half of 2008). The company has two principal contracts in Wales and Scotland.

 

Scotland

 

1998/99

Eastern Scotland

30 year PFI BOT

585,000 sewage treatment

 

Sterling Water (Veolia 100% following a buyout in 2009) gained the Eastern Scotland contract. The original Almond Valley and Seafield GBP50million scheme for the upgrading of five sewage treatment works serving Edinburgh and replacing sewage sludge disposal to sea with land based recycling has been extended to include the GBP20million Esk Valley scheme. These contracts are operated by Veolia Water UK. The population covered will be 585,000 at the start, rising to 850,000 in an area covering 1million people at the outset and 1.2million at completion. 

 

Wales

 

2001

Wales

5&7 years, Customer Services

1,300,000 households

 

The first contract was worth GBP68million to manage customer services for Dwr Cymru Welsh Water until 2005. The contract serves 1.3million connected properties, representing a population of over 3million. In 2005 it was renewed for up to 7 years.

 

Acquisition of United Utilities’ UK outsourcing contracts

 

In April 2010, VE acquired UU’s outsourcing contracts serving various utilities in England, Wales and Scotland.

 

Scotland PFI

 

1998

Fort William

28 year PFI BOT

14,000 sewage treatment

1998

Inverness

28 year PFI BOT

66,000 sewage treatment

1999

Tay

28 year PFI BOT

270,000 sewage treatment

2001

Moray Coast

28 year PFI BOT

55,000 sewage treatment

 

These contracts were awarded by the North of Scotland Water Authority to Catchment Ltd, with UU responsible for the operation of the sewage treatment works through Caledonian Water. The GBP45million Highland scheme has two facilities, at Fort William (PE of 20,000 for GBP10million) and Inverness (PE of 125,000 for GBP35million), which are both fully operational. The Tay scheme (33% held by UU) is for a single site serving Dundee and Angus and entered service in March 2002 at a total cost of GBP120million. The GBP76million scheme for the Moray Firth involves three sewage treatment works and 25km of sewerage for the Moray Firth.

 

England, Wales and Scotland – Outsourcing contracts

 

During 2004-05, UU Contract Solutions (UUCS) gained GBP3.3billion in utility related contracts across the UK and revenues of at least GBP650million pa in the medium term. No contracts were subsequently gained, which fits in with a pattern of these contract awards in relation to the AMP cycles.  

 

The four year operations contract with Glas Cymru for Dwr Cymru Welsh Water’s (DCWW) operations started in April 2001. This contract was originally worth GBP450million and was expanded to GBP600million, covering both water and sewerage activities. To date, variable costs have been reduced by 20%. This was replaced with a 15 year, GBP1.5billion contract starting from April 2005, with five yearly reviews, which was wound up in 2010. In 2002, UUCS also gained a GBP15million water meter installation and replacement contract.

 

United Utilities water outsourcing contracts

 

Year

Client

Contract

Total value

Duration

2001

Welsh Water

Operations

GBP450million

4 years

2003

Scottish Water

Capex management (JV)

GBP1,100million

5 years

2004

Welsh Water

Operations

GBP1,500million

15 years

2005

Southern Water

Capex management (JV)

GBP750million

5 years

2006

Scottish Water

Capex management (JV)

GBP760million

4 years

 

The Southern Water contract is worth GBP300million to UU and covers 250 water and wastewater projects, while UU will be involved in managing water provision across Wales and sewage treatment in north Wales. UU is now involved in managing contracts covering 35% of the UK water sector’s asset base and is involved in 60% of the 9% of the utilities market in the UK that has been outsourced to date.

 

In 2011, the VE-led consortium Vennsys Limited gained a 10 year meter reading, automation and management contract for Thames Water. The 10 year contract will generate GBP 240million. Vennsys is 51% held by Veolia Water UK, 34% by H2O Water Services and 15% by Mace.

 

Ireland

 

2008

Castlebar

22 year BOT

20,000 wastewater

 

The contract involves renovating and operating the WWTW to a PE of 35,000 (including 10,000 PE for industrial effluents) and will generate revenues of EUR26million.

 

2008

Mullingar

22 year BOT

28,000 wastewater

 

Total revenues for the contract will be EUR48million including renovating a 55,000 PE sewage works which will cost EUR25million and is due to enter service in June 2010.

 

2006

Limerick

20 year BOT

90,000, wastewater

 

This is a EUR71million repair, enlargement and operation contract for the city’s wastewater treatment plant, which will increase its treatment capacity from 51,000m3/day to 87,000m3/day.

 

Germany

 

Berliner Wasserbetriebe

 

Y/E 31/12 (EURmillion)

2005

2006

2007

2008

2009

Domestic revenues

N/A

1,123

1,117

1,172

1,183

International revenues

N/A

19

17

19

7

Services revenues

N/A

5

5

5

6

Total turnover

1,234

1,147

1,139

1,193

1,197

Net profit

85

89

150

136

158

Water sales in Germany (million m3)

197

202

200

193

N/A

Sewage treated in Germany (m m3)

227

231

241

233

N/A

Water sales - BWI (million m3)

N/A

N/A

87

N/A

N/A

Sewage treated - BWI (m m3)

N/A

N/A

415

N/A

N/A

 

BWB dates back to 1856, including 45 years with its services being divided by the Berlin Wall. In 1999, after the partial privatisation of BWB, Berlinwasser Holding AG was formed and BWB was vested into this company. The consortium (VE 50.1% and RWE 49.9%) acquired 49.9% of BWB for EUR1.69billion, with the majority 50.1% stake being held by the City of Berlin.

 

 

1999

Berlin

30 year concession

4,000,000 water & sewerage

 

BWB serves 3.4million people in Berlin, operating nine water treatment works and six sewage treatment works. In addition water is provided to 70,000 people and wastewater treatment to 535,000 in Brandenburg via 10 water and 24 wastewater contracts with a total of 113 local authorities.

 

The sale by VE and RWE of 80% of Berlinwasser International to Marubeni in 2005 was rescinded in 2006 and in 2007 BWB decided to continue developing these activities. Please see the RWE company entry for BWB International’s activities.

 

Other contracts in Germany directly held by VE

 

1995

Döbeln/Oschatz

20 year management

240,000 water & sewerage

 

Oewa (46% held by VE, a JV with Veba Kraftwerk Ruhr AG until 1998) gained a contract for Döbeln/Oschatz in Saxony with a turnover of DM17million, serving 240,000 people.

 

1999

Grimma

25 year concession

85,000 water & sewerage

 

The concession covers 19 communes in Saxony, 85,000 being served with piped water and 45,000 with sewerage. The contract is worth EUR153million over its life. Oewa Wasser und Abwasser GmbH mainly operates in Saxony-Anhalt, holding 25 contracts, including 6 gained via the 1994 acquisition of Awatech.

 

1999

Midewa

Acquisition

350,000 water & sewerage

 

In December 1999, activities in Saxony Anhalt were boosted by the acquisition of Midewa, which has a turnover of EUR56million pa. 350,000 are included for water services and 210,000 for sewerage. VE also has a 25 year O&M contract for sewerage services in the Hanover area, with a turnover of EUR15million pa.

 

 2007

Thale

Concession

13,000 water and sewerage

 

VE acquired 49% of Stadwerke Pulheim in 2009.

 

 2009

Springe

Concession

10,000 storm sewerage

 

VW acquired 33.5% of Stadwerke Springe in 2009.

 

 2009

Pulheim

Concession

54,000 water and sewerage

 

VW acquired 49% of Stadwerke Pulheim in 2009.

 

 2001

Görlitz

Acquisition (74.9%)

63,000 municipal services

 

Saxony’s Stadwerke Görlitz had a EUR61million turnover in 2000. It also provides waste management, water, sewerage, energy and public transport services to the town. In 2009, the electricity, heat and gas contracts were renewed.

 

2003

Gera

10 year BOT

153,000 water & wastewater

 

The contract is with the municipality of Gera in Thuringia. Total revenues for the contract will be EUR130million.

 

2004

Braunschweig

16 year BOT

 240,000 water

 

VE acquired 74.9% of Braunschweiger Versorgungs AG (BVAG) in December 2004 for EUR372.5million. The company manages water and wastewater services for the city in Lower Saxony. The company has generated revenues of EUR270-300million pa since 2005.

 

2005

Braunschweig

30 year O&M

 280,000 wastewater

 

A subsequent contract, awarded in December 2005 covers the city’s wastewater treatment plants run by Stadtentwässerung Braunschweig Gmbh and is worth EUR390million. The plant has a 350,000 PE.

 

2009

Burg

15 year O&M

24,000 water & wastewater

 

The contract with the regional Authority of Burg in Saxony-Anhalt is worth EUR20million.

 

Belgium

 

2001

Brussels

20 year DBFO

1,100,000 sewage treatment

 

Construction of the Brussels North STW started in 2003, and the facility entered service in the first half of 2008. The Aquiris contract is worth a total of EUR1billion over its life, including EUR290million in Capex and a fee of EUR49.6million pa for the Aquiris consortium. Treatment capacity is 119million m3 pa. 

 

Sweden

 

2001

Norrtalje

10 year ‘concession’

  50,000 water & wastewater

 

The turnover over the life of the contract will be EUR25million. This is the first water PPP in Sweden. Veolia Vatten also operates the water and wastewater networks for the municipalities of Danderyd and Jarfalla, as well as pumping stations for Stockholms Lokaltrafik (SL).

 

Norway

 

2003

Oslo

Construction/operation option

  Water treatment

 

This is to be the largest water treatment plant in Norway, serving some 250,000 people and costing EUR73million in total, with completion planned for 2008. There is an option for a 15+5 year operations contract worth EUR102million.

 

Italy

 

Until 2005, VE was effectively engaged in managing a portfolio of operating contracts and strategic stakes. The 2005 acquisition of Enel Hydro has more than compensated for the decision to sell its stakes in the two Genovan water companies to Amga. It is understood that VE continues to hold 72% of Siemec, a company providing sewerage and sewage treatment to 700,000 people.

 

Acquisition of Enel Hydro

 

75% of Siciliacque, the entity running Sicily’s water distribution system was sold to a VE and Enel joint venture in 2004 for EUR299million. The 40 year concession starts in 2004 and calls for investments of EUR1billion, including EUR300million in the first decade and reducing leakage from 30% to 12%.

 

Enel’s water activities were sold to VE for EUR36million in May 2005. Enel Hydro SpA provides water to 6.1million people, mainly through Idrosicilia SpA which provides water management services in Sicily. VE acquired 100% of Enel Hydro in the deal, along with 20% of Idrosicilia and an option for Enel’s remaining 40% stake in the latter company. 

 

2001

Latina

30 year concession

600,000 water & wastewater

 

ATO de Latina covers southern Lazio’s ATO-4, serving 38 communes. A consortium of VE (21.8%), Enel (23%) and Acquedotto Pugliese (23%) gained the concession in July 2001, after the tendering process had been held up by a dispute over the scoring system. The concession will be worth EUR2billion over its operating life. UFW needs to be decreased from 70% to 25-30% and major sewage treatment upgrades are also required. A further 500,000 tourists use the area.

 

2001

Calabria

30 year concession

752,000 water & wastewater

 

VE and Acquedotto Pugliese hold 49% of Societa Risorce Idriche Calabresi (So Ri Cal), serving the region of Calabria. The concession became operational in 2002 and involves ITL800billion of capital spending over its life, mainly during the first 8-10 years.

 

Gruppo Camuzzi

 

Gruppo Camuzzi was founded in Milan in 1929. In October 2001, Mill Hill NV, the Dutch holding company of the Garilli family, sold 40% of its 100% holding in Gruppo Camuzzi to Enel for EUR434million. In March 2002, Enel bought the rest of Camuzzi for USD870million from Mill Hill NV. The company is principally engaged in gas services. In 1997, Camuzzi gained a 20 year concession contract for water and wastewater services for the town of Massa, serving 44,051 and 30,379 people respectively. Camuzzi's subsidiary Gazometri in total manages 5 concessions in Lombardy, Tuscany and Abruzzo and supplies 40,195 customers. 6% of the group turnover in 1999 was in environmental services.

 

Argentina

 

1994/1996

Balacarse & Laprida

20 year concessions

45,000 water and wastewater

 

The concessions cover two towns in the Buenos Aires region. Camuzzi holds 100% of Aguas de Laprida and 70% of Aguas de Balacarse. The concessions serve a total of 17,835 customers. USD3.54million has been spent on infrastructure development since 1994, with a 2001 turnover of USD1.74million.

 

China

 

VE’s consolidated revenues in China were EUR350million in 2003. It is by some way the fastest growing market VE is involved in and is set to become VE’s largest international water services market in the medium term. VE currently has 22 municipal and 6 industrial contracts, serving some 38million people in China, including 27million via full service concessions.

 

2010

Hong Kong

3+15 year DBO

4,000,000 sludge treatment

 

This facility is designed to handle the sludges produces by Hong Kong’s 11 WWTWs. It will handle 800 tonnes of sludge per day at the start, rising to 2,000 tonnes per day. The facility is planned to enter service in early 2014 at a construction cost of EUR414million followed by operating costs of EUR20million per annum. It is 60% held by VE and 40% by Leighton Asia.

 

2008

Changle

30 year management

680,000, water

 

The contract will generate revenues of EUR294million.

 

2007

Haikou

30 year management

 800,000 water & wastewater

 

The Haikou (Hainan) contract was awarded in June 2007, following the acquisition of 49% of the operating company. The contract will generate revenues of EUR776million.

 

2007

Tianjin

30 year management

 3,000,000 water

 

VE acquired 49% of the Tianjin Shibei Water Company Ltd from the Tianjin Water Works (Group) Company Ltd. The contract will generate revenues of EUR2.5billion. The project will cover the district of Shibei, the Northern part of Tianjin, and the Binhai district on the Eastern coast. It includes managing the Xinkaihe water production plant (1million m3/day) and a 1,988km of mains and the 500,000m3/day Jinbin water treatment works, currently under construction. In addition, the company will develop the water conveyance network to all the industrial areas in the Binhai area, situated along the coast of Bohai Bay. 2008 revenues were EUR19million.

 

2007

Lanzhou

30 year management

 3,200,000 water

 

This EUR1.6billion contract for the capital of Gansu Province was gained in January 2007. VE will hold 45% of the Lanzhou Water Supply Company. VE will manage four water treatment plants with a total capacity of 2,190,000m3/day and 640km of water mains. 

 

2006

Liuzhou

30 year management

 1,000,000 water

 

The August 2006 contract sees VE taking 49% of Liuzhou Water Services and responsibility for managing all water distribution services, including 4 water treatment plants with a combined capacity of 540,000m3/day. Revenues over the contract will be some EUR330million.

 

2005

Kunming

30 year BOT

 3,500,000 water

 

Signed in November 2005, this contract will generate EUR1,100million in revenues. VE and Citic Pacific will hold 49% of Kunming Water Supply and manage its 1.615million m3/day water treatment and distribution service. This contract generated EUR20million in revenues during the final seven months of 2006.

 

2005

Changzhou

30 year BOT

1,200,000 water management

 

VE and Citic Pacific acquired a 49% stake in the municipal company Changzhou Tap Water Group following an international tender. The contract is worth EUR800million and involves managing the company, including 5 water treatment plants (capacity 790,000m3/day), a 1,750km distribution network and customer services.

 

2005

Handan

25 year BOT

800,000 wastewater

 

This contract involves the construction of a new wastewater treatment plant with a capacity of 100,000m3/day and its operation for 25 years. The Veolia Water Systems contract will have total revenues of EUR62million.

 

2005

Urumqi

23 year BOT

1,200,000 wastewater

 

The contract serves the capital of the Xinjiang Uyghur Autonomous Region and involves upgrading and operating for a 23 year period of the city’s wastewater treatment plant, in partnership with Beijing Capital Group (BCG). The plant’s current capacity of 200,000m3/day will increase to 400,000m3/day by 2008. Total revenue for Veolia Water for the contract will be EUR260million.

 

2003

Shenzhen

50 year BOT

7,610,000 water & wastewater

 

This contract is being jointly operated with Beijing Capital Corporation (see company entry) and will generate revenues totalling EUR8.5billion. 45% of the contract company is held by VE and BCG and 55% by the Shenzhen municipalities. VE is investing EUR390million into the project. At the start of the project, 2.6million people were served. The contract contributed EUR103million to VE’s 2008 consolidated revenues. In 2009, Shenzhen Water Group acquired five companies which manage water services in the district of Baoan.

 

2004

Weinan

22 year BOT

300,000, water

 

This is a EUR190million rehabilitation and operation contract for bulk water services, providing 160,000m3/day.

 

2004

Hohhot

30 year BOT

2,500,000 water

 

The rehabilitation and operation of the Inner Mongolian capital’s water production and treatment system (10 plants) has a capacity of 515,000m3/day and will generate revenues of EUR600million.

 

2004

Beijing

20 year BOT

Wastewater

 

The Bei Yuan wastewater treatment plant is adjacent to the Olympic Village and the contract will generate total revenues of EUR20million.

 

2004

Zunyi

35 year concession

600,000 water

 

Zunyi is in Guizhou Province. This rehabilitation and operation contract is being carried out jointly with Citic Pacific (see company entry) and will generate total revenues of EUR210million. 

 

2003

Qingdao

25 year BOT

1,000,000 wastewater

 

The contract (with China Everbright) covers the operation of two wastewater treatment works for the 2008 Beijing Olympiad. Revenues will total EUR110million. The capacity of the Maidao plant was increased from 80,000m3/day to 140,000m3/day in 2006.

 

2003

Beijing

20 year BOT

250,000 wastewater

 

Veolia Water and Kerry Utilities (part of PPB of Malaysia), signed a 20 year contract to operate the Lugouqiao wastewater treatment plant, located in the east of Beijing. Total revenues will be EUR50million. This is the first private sector WWTW contract for Beijing and will be financed through a World Bank loan to the Beijing municipality with VE and Kerry providing an additional EUR5million. The plant will cost EUR40million.

 

2002

Baoji

BOT, 23 year

500,000 bulk water supply

 

VE is to refurbish the city’s two WTWs and to expand their capacity.  Revenues over the life of the contract will be approximately EUR300million.

 

2002

Zhuhai

BOT, 30 year

1,200,000 bulk water supply

 

VE is to refurbish one WTW and to construct a second facility. Revenues over the life of the contract will be approximately EUR400million.

 

2002

Shanghai

50 years, O&M

2,200,000 water services

 

In May 2002, VE gained the water O&M contract for the Pudong business district in Shanghai. This is the first outsourcing contract to give a foreign company the responsibility for providing a full service offering: embracing drinking water production, network distribution and customer services. Veolia Water has bought a 50% share in a new JV company, Shanghai Pudong Veolia Water Corporation, for an amount of EUR266million. At the start of operations, the contract will supply potable water to 535,000 domestic connections and 18,000 commercial and industrial customers with an average daily consumption of 1.2million m3. An immediate priority has been reducing distribution losses from their 30% level. The entire Pudong area currently has 2.4million residents. The 50 year contract is expected to generate a turnover of over EUR10billion during the term due to the expected substantial growth of Pudong in the coming years. The business district is forecast in the long-term to be home to 5million people.

 

1998

Chengdu

BOT, 18 year

3,200,000 bulk water supply

 

The BOT contract was awarded to Chengdu Générale des Eaux-Marubeni Waterworks (CGDEM), a JV with Marubeni (60% VE, 40% Marubeni). This was the first wholly foreign owned BOT water supply project in China. The project for Sichuan’s capital cost USD100million, USD90million going on the treatment plant which started operations in 2002. It supplies 460,000m3/day of water. Construction took 30 months and includes 27km of pipelines. Chengdu has a total population of 10million, of whom 3.2million live in the central area.

 

1997

Tianjin

‘Concession-type’, 20 year

1,850,000 water treatment

 

This was awarded for upgrading the Lingzhuang water treatment works, which has a 500,000m3/day capacity and is one of the Tianjin's largest facilities, providing water to one third of the 11million served by the municipality. The facility is to have its capacity increased by 250,000m3/day in the medium term. The contract generates bulk water sales of USD15million pa, with an agreed Capex of USD30million for plant rehabilitation and the building of a new 13km piping network. CGE Tianjin Waterworks holds the concession, which is 55% held by a JV which is in turn 70% owned by VE and 45% held by the municipality’s Tianjin Waterworks Co.

 

Kazakhstan

 

VE was awarded two contracts in March 2000: (1) A 30 year water management contract for the old capital Almaty (1,250,000 people) and (2) A USD40million contract for pipeline and pumping station renovations for the new capital Astana (300,000, to grow to 500,000). The Almaty contract never started due to delays by the Government causing VE to pull out. VE retains an industrial water services presence in the region.

 

Republic of Korea

 

2010

Dongbu

15 year management

Industrial water services

 

A EUR183million acquisition of Dongbu Corp’s wastewater and process water facilities.

 

2004

Kumdan

23 year BOT

150,000 wastewater treatment

 

The Kumdan WWTW is located near Incheon. The facility will have a capacity of 40,000m3/day and will generate consolidated revenues of EUR80million. The contract is jointly run by Hanwha Engineering & Construction Corporation & Doosan Construction & Engineering.

 

2001

Incheon

23 year BOT

260,000 sewage treatment

 

The Incheon contract (Samsung Veolia Incheon Wastewater Co., Ltd., VE 80%, and Samsung Engineering 20%) involves USD300million being spent on two sewage treatment works (Mansu, 70,000m3/day and Songdo, 30,000m3/day) with a total capacity of 100,000m3/day. The two facilities entered service in April 2005.

 

 

 

Japan

 

VE has had a low key presence in Japan, being involved in short term wastewater maintenance contracts for some years. Major contracts have been gained since 2006, including two three year O&M wastewater treatment works in 2006 (Saitama, a district near Tokyo and for Hiroshima), which were renewed for a further 3 years in 2009, with total revenues of EUR21million. In April 2007, VE gained a three year O&M contract for a 283,000m3/day wastewater treatment plant serving 500,000 people in Chiba, which will generate total revenues of EUR17.8million. In 2009, a second EUR35million three year wastewater outsourcing contract was gained for Chiba. In 2010, a four year meter reading contract for Osaka worth EUR44million was renewed.

 

In July 2007, Veolia Water Japan and J-Power (Japan’s Electric Power Development Co) acquired Fresh Water Miike, a water management unit of Mitsui Mining Co. This company, now named Fresh Water Service Co provides water services for half of the households in Omuta, Fukuoka Prefecture and the neighbouring Arao in Kumamoto Prefecture. VE made four further acquisitions of water technology companies in Japan during the first half of 2008: 

 

Company

Revenues

Revenue year

Nishihara Environment Technology

EUR38million

2007

Dai Nippon Eco Engineering

EUR8million

2008

Yamagata Kangyo Engineering

EUR4million

2007

Nichijo

EUR7million

2006

 

India

 

VW India gained a four year performance contract to provide continual water supplies at various pilot locations in the state of Karnataka, serving 200,000 people through 33,000 connections including 10,000 social connections. 

 

2007

Nagpur

5 year O&M

100,000 water

2008

Nagpur

15 year DBO

650,000 water

 

Revenues for the 30 month construction and 15 year operations contract will be EUR24million, including construction. The 240,000m3 per day water treatment plant contract was awarded in June 2008 and builds upon an earlier rehabilitation contract and a pilot services upgrading project designed to provide a continual water supply for 10,000 customers (100,000 people) in the city.

 

Indonesia

 

1997

Sidoarjo

25 year BOT

100,000 bulk water supply

 

This concession is for bulk water provision to PDAM Delta Tirta Sidoarjo, the local water entity. The concession holds 95% of the equity, along with Indonesia’s PT Agumar Nusa and PT Hansa Letsari. The build and management concession will entail a capital investment of INRR130billion, or a EUR4million investment by Veolia Water. The facility will have a 20,000m3 day capacity, for 100,000 people. 

 

Philippines

 

The 1998 Fort Bonifacio concession was sold to a third party in 2007.

 

2000

Manila

25 year concession

Water supply and sewerage

 

The concession for the Clark Economic Zone is similar to the Fort Bonifacio contract. In this case, it is for a 4,400ha site earmarked for future development, where EUR25million will be spent developing the basic water and wastewater infrastructure in the first three years of the contract. 

 

Malaysia

 

The company gained its first concession in 1995 and has made further progress by working with local companies so as to take over the operation of their concession contracts.

 

1995

Selangor

25 year O&M contract

1,400,000 water provision

 

The Selangor contract involves bulk water provision for the entire state. This involves the management and rehabilitation of the state’s 26 water treatment plants with VE as a subcontractor to Puncak Niaga.

 

Gabon

 

1997

SEEG

20 year concession

1,200,000 utility services

 

VE won the tendering process to acquire a 51% stake in the Gabonese public utility Société d’Electricité et d’Eau du Gabon (SEEG), with 49% of SEEG held by local investors. This is a XAF700million concession for water production and electricity distribution to the three principal cities; Libreville (526,000 people served with water), Port-Gentil and Franceville, including XAF200million for water. Average tariffs fell by 17% at the start of the contract and have been held to less than the rate of inflation since then.

 

Water coverage

1993 coverage

2000 target

2000 actual

Libreville

49.3%

53.0%

61.3%

Franceville

38.6%

43.0%

58.0%

Port Gentil

37.7%

43.0%

49.5%

 

There were 100,385 customer connections in 2005, including 17,978 which have subsidised connections using less than 15m3/month. By 2006, the connection rate had risen from 40% to 70%, with 192,000 people in worse off areas being connected to water and sewerage since 2002. In 2011, it was announced that VE was considering selling the concession.

 

Niger

 

2000

SEEN

10 years, management

1,600,000 water

 

Supported by USD65million in funding by the World Bank’s IDA, the French Development Agency and the West African Development Bank, this 10 year affermarge contract for Société d'Exploitation des Eaux du Niger (SEEN, 55% VE, 45% local investors) covers 52 urban centres and charges on average XOF208/m3 (EUR0.3) for drinking water. Between 2001 and 2005, the number of connections rose from 58,000 to 79,433, including 11,688 new low cost connections. Niamey (600,000 people) was the initial target area, with 51 other districts being covered later. Bill collection rates were 97% in 2004, reflecting a programme to optimise affordability for all clients, with 84% network efficiency and 97% water quality compliance in 2005. As of 2011, it appears that the contract remains active.

 

Morocco

 

In 2008, VE created a NAM1 a joint venture with the Mubadala Development Company, 49% held by MDC and 51% by VE, into which VE’s activities in Morocco and the Middle East were transferred.

 

The two concessions currently serve 3.6million people in 38 local authorities through 738,500 electricity and 588,500 water customer connections including 48,500 low cost water and sewerage connections. 3.2million people are served with water and sewerage. A particular emphasis has been placed on water network efficiency:

 

 % efficiency

2002

2004

Tangier

60.9%

73.4%

Tétouan

52.7%

66.0%

Rabat

68.0%

81.7%

 

By 2009, 300,000 people had been connected to the water service via 60,000 subsidised connections.

 

2001

Tangier & Tétouan

25 year concession

Up to 1,400,000 water & electricity

 

The concession serves a total of 23 districts within the two cities. VE (51%) is the lead company in Amendis a consortium comprising ONA of Morocco, SOMED (Morocco and UAE) and Canada’s Hydro Quebec. The two concessions cover water & wastewater and electricity services for 23 districts within the two cities, serving a total of 1.4million people; 780,000 in Tangiers and 630,000 in Tetouan. The Tangiers contract was designed to generate revenues of EUR66million pa from 2001 and the Tétouan contract will generate revenues of EUR39million, with combined revenues of EUR130million pa by the fifth year. The concessions involve network and service maintenance, with an emphasis on extending and rehabilitating sewerage services. The concessions will also be designed to take into account the population growth anticipated over the duration. 28,500 low cost water and wastewater connections have been made to date, along with the aim of 90% sewerage coverage by 2008.

 

1999

Rabat

30 year concession

Up to 2,200,000 water & sewage

 

The EUR4.6billion utility privatisation for Rabat and Sale was awarded to Redal, Dragados’ consortium with Electricidade de Portugal, Pleiade (Portugal) and Alborada (Morocco). Rabat’s utilities serve 1.7million people, with a EUR138million (USD130million) turnover for water, sewerage and electricity services in 1998. 84million m3 of water was delivered in 2000. Dragados sold its stake to VE in November 2002. MAD700million (EUR64million) was invested in the area in 2003, including MAD350million in wastewater treatment facilities, concentrating on a new WWTW in Skhirat. 15,000 low cost water connections and 20,000 low cost sewerage connections have been made since 2002.

 

Lebanon

 

2009

Tyr Sour

5 year BO

40,000 wastewater

 

A EUR31million contract for the construction and operation of a wastewater treatment plant.

 

Qatar

 

2009

Doha

7&3 year O&M

500,000 wastewater treatment

 

The contract covers two WWTWs, Doha South (112,000m3 per day) and Industrial Area (12,000m3 per day) with an initial contract value of EUR44million, plus a EUR15million extension option. The facilities offer full water recovery for irrigation and agriculture.

 

Oman

 

2011

PAEW

5&2 year management

2,300,000 water management

 

VE is to provide co-management services for the Public Authority for Electricity and Water, which is responsible for water supply in eight of the sultanate’s nine regions, covering 2.3million people or 70% of the total population. 

 

2006

Muscat

5&3 year management

700,000 wastewater treatment

 

A five year management contract with a three year extension option was awarded by the Oman Wastewater Services Company in June 2006 to assist in the management of wastewater services in Muscat. OWSC is responsible for all wastewater services in Muscat under a 30 year concession agreement at the beginning of 2006 with the Government of Oman for the acquisition, development and operation of Muscat’s wastewater collection and treatment system.

 

2007

Sûr

22 year BOO

350,000 water provision

 

In January 2007, VE gained a EUR434million 22 year contract to build, finance and operate a 80,200m3/day RO desalination plant for the city of Sûr and the surrounding region of Sharqiyah. The facility will cost EUR111million to construct in partnership with Bahwan Engineering Co (VE 60%, Bahwan 40%). 

 

Saudi Arabia

 

In April 2008, Veolia Water AMI was awarded a six year EUR40million incentive-based management contract for improving aspects of the management of the 10,000km Riyadh water supply system and the 4,500km sewerage system. The former will involve reducing leakage from its current 50% level and the latter in improving the connection rate of the city, where currently 2.0million of the 4.5million inhabitants are connected to the system.

 

 

 

 

United Arab Emirates

 

2007

Fujairah

12 year O&M

130,000 desalination

 

Veolia Water was awarded a contract to operate and manage the reverse osmosis desalination plant at the F2 IWPP project in Qidfa, Fujairah in December 2007. There is a three year pre-operational phase prior to the facility entering service in 2010.

 

2007

Abu Dhabi & Al Ain

27 year BOT

1,200,000 wastewater

 

A EUR461million contract (including construction), which was announced in July 2008. The Abu Dhabi (850,000 people in 2008) plant will have a 300,000m3 per day capacity (1.25million PE) and the plant serving the emirate’s second city, Al Ain (348,000 people in 2003) will treat 130,000m3 per day (876,000 PE). Construction will take 3 years, with a 25 year operating contract on completion. The shareholding is similar to the Ajman concession. In addition, VE has a DBO contract (the 3 year operating phase generating revenues of EUR10million) to treat the water in the artificial lake by the Burj Dubai Tower which was also gained in 2008. 

 

2006

Ajman

27 year Concession

235,000 wastewater treatment

 

The concession was awarded in February 2006 to Moalajah. This company is managing the concession and is 67% owned by VE and 33% by Besix of Belgium. The concession company is in turn 50% held by Besix, 20% by VE, 10% by Black & Veatch and 20% by the Ajman Government. A 90,000m3/day facility was constructed from 2007-09, along with 230km of sewerage and the contract will generate EUR151million in revenues. This supersedes the Thames Water/Black & Veatch BOT, whereby a USD100million refinancing, using the first monoline credit facility in the Middle East formed part of Thames Water selling its 60% stake in the original 2003 concession to the new holders. 

 

Israel

 

2002

Ashkelon

25 year BOT

1,400,000 water desalination

 

VID Investment Consortium, comprising VE, IDE and Dankner of Israel gained the BOT contract. VE holds 50% of OTID, the construction company’s equity, and 49.5% of ADOM, the operating company. The contract covers the construction and operation of the 320,000m3 per day facility, the largest membrane sea water desalination plant in Israel. Total revenues will be EUR900million, with the plant costing USD110million to build. The provision price of USD0.527/m3 was well below expectations due to new technologies purchased by VE and a relatively low cost of capital. The facility entered service in 2003 with full capacity in 2005.

 

Australia and New Zealand

 

United Water was set up in 1995 to bid for the Adelaide contract, as a vehicle for securing business for the state in other parts of Australasia. VE bought out Thames Water, its United Water joint venture partner in 2005. VE did not retain the Adelaide contract after its expiry in 2011, and the new contract was awarded to Suez Environnement.

 

Australia

 

VE serves ‘up to’ 3million people in Australia via 14 contracts. Contracts directly serving 2.1million people have been identified.

 

2008

Sydney

20 year BOT

75,000 wastewater recovery

 

A EUR99million contract for the Rosehill and Camelia WWTWs located to the west of Sydney which entered service in 2011. 20,000m3 of recycled water per day is to be provided to industrial customers.

 

2006

Queensland – I

DBO

800,000 wastewater recovery

 

The first contract involves the recycling of wastewater from sites at Oxley, Wacol, Goodoa and Bundamba, Luggage Point and Gibson Island. The volume of water treated by microfiltration or ultrafiltration, reverse osmosis and UV, will be 232,000m3/day. The water will be used by industrial customers. The facilities entered service in 2008.

 

2006

Queensland – II

10+5 year DBO

650,000 water

 

A 125,000m3/day desalination plant will supply residents of the Gold Coast and the South Eastern Region of Queensland. The 10 year O&M phase can be extended by a further five years. The initial O&M phase will generate revenues of EUR210million.

 

2006

Ballarat

15 year BOOT

30,000 wastewater

 

A EUR43million construction and operation contract for an 8,400m3 per day wastewater treatment plant to serve the city.

 

1999/03

Ballarat

25 year BOOT

105,000 water supply

 

UW is responsible for the O&M element of the contract originally awarded to Thames Water. The contract generates revenues of AUD2.7million per annum.  An additional 20 year contract covering four local water works was gained in 2003 serving 5,000 people in the neighbouring towns of Beaufort, Blackwood, Clunes and Forest Hill.

 

Other contracts are operated through General Water Australia.

 

1996

Sydney

25 years, BOO

500,000 water treatment

 

The AUD180million treatment Wyuna Water project currently handles 370Ml/day and can be further upgraded to 534Ml/day. The Woronora plant (160Ml/day, upgradable to 210Ml/day) entered service in April 1997 and the Illawarra Plant (210Ml/day, upgradable to 314Ml/day) in December 1996.  

 

2007

Sydney

23 years, DBO

500,000 water treatment

 

This is a reverse osmosis desalination plant with an initial capacity of 250,000m3/day which can be expanded at a later date to 500,000m3/day. The EUR540million contract includes a three year construction phase completed in 2010 followed by a 20 year operating phase.

 

1998

Noosa

15 years DBO

60,000 water treatment

 

This involves a holiday resort in Queensland with an off-season population of 44,000. The 45L/day facility entered service in December 1999. From 2011, it is being connected with the South East Queensland Water Grid, which is already operated by UW.

 

1999

Kyneton

DBO

11,000 wastewater treatment

 

A DBO contract with Victoria’s Coliban Water Authority.

 

2002

Castlemaine

O&M

10,000 wastewater treatment

 

Victoria’s Coliban Water Authority originally contracted VW to carry out an upgrade of its WWTW, which became an O&M contract.

 

2002

Coliban

25 years BOOT

130,000 water treatment

 

The Aquia 2000 project for Victoria’s Coliban Water Authority consists of three WTWs serving Bendigo (126ML/day), Castlemaine (18Ml/day) and Kyneton (8Ml/day).

 

2001

NSW

20 years DBO

11,000 wastewater

 

A sewage treatment works for the townships of Gerringong and Gerroa, 120km south of Sydney. The facility entered service in August 2002 and the recovered water is used for farm irrigation.

 

2000

Mafra

10 year BOT

Water treatment

 

The USD10.6million contract is for an industrial water treatment facility in the state of Victoria.

 

 

New Zealand

 

2000

Franklin

O&M

61,000 water and wastewater

 

Franklin is 50km south east of Auckland. The project covers 13 WTWs (9,600m3 per day), five WWTWs (8,500m3 per day) and storage and distribution systems along with 12,800 water meter readings.

 

2002

Queenstown

O&M

24,000 water & wastewater

 

This is UW’s first contract on South Island and covers four WWTWs and seven WTWs.

 

1997

Papakura

30 year BOT

47,000 water & sewerage

 

Papakura is an urban district of Auckland. The AUD120million contract was awarded to UW in 1997 and it generates revenues of AUD6.3million per annum.

 

2002

Waitomo

O&M

10,000 water & wastewater

 

Waitomo is in central west North Island. It covers four WTWs and two WWTWs.

 

2002

Ruapehu

10 year O&M

14,000 water & sewerage

 

In November 2002, UW started a 10 year O&M contract with the Ruapehu District Council, a rural region of approximately 14,000 residents located 320km south of Auckland. The contract covers rural water and wastewater treatment facilities, 117km of water pipes, 97km of wastewater pipes, 3,670 wastewater connections, 4,570 water connections and 38km of stormwater pipes.

 

2004

Thames-Coromandel

10 year O&M

25,000 water & sewerage

 

Thames-Coromandel District is in the North Island. It has a residential population of 25,000 rising to 150,000 during the summer. There are 14,650 water and 18,100 wastewater connections.

 

1995

Wellington

25 year DBO

188,000 sewerage

 

Two sewage treatment works have been constructed at a total cost of NZD149million (GBP50million), along with a sludge de-watering plant and a 1.8km long sea outfall at Moa Point. The construction phase ended in 1998, and. the facility is now in service, with a 21 year operating contract. United Water acquired Anglian Water International (NZ) in June 2004.

 

Latin America

 

Turnover for Proactiva Medio Ambiente was EUR443million in 2000, with net profits of EUR7.3million. Revenues have been impacted by currency weakness and fell to EUR145million in 2002. This has been further reduced to EUR34million in 2003 due to the non-renewal of a number of contracts, most notably for Puerto Rico. Revenues have recovered since, rising to EUR403million in 2009 with an EBITDA of EUR83million. Proactiva’s 2010 revenues rose by 4.3% to EUR420million, with an EBITDA of EUR79million. 

 

Argentina

 

Proactiva Medio Ambiente was awarded the Catamarca contract in April 2000 for water supply management for the departments (parts of the town) of Capital, Vallejo Viejo and Fray Mamerto Esquiú in the province of Catamarca, in the northwest part of the country. It was rescinded in 2006. 

 

Venezuela

 

1997

Monagas

30 year concession

552,000 water

 

Proactiva Medio Ambiente Venezuela gained the Hidrocapital concession for the water supply and sewerage for the north east sector of Caracas in July 2002. The service area has 650,000 inhabitants. Forecast revenue is USD2million pa.

 

Colombia

 

3.1million people are served by Proactiva.

 

1998

Bogotá

20 year BOT

2,000,000 water

 

This is the contract for upgrading and expanding the TIBITOC water treatment works in consortium with 2 local partners, with Proactiva holding 33% of the equity. The contract involves USD78million in investment, USD55million having been spent to date. Total contract revenues will be USD300million. The plant has a capacity 900,000m3/day serving some 2million people.

 

1996

Tunja

20 year concession

151,000 water & wastewater

2000

Monteria

20 year concession

329,000 water & wastewater

 

The Monteria concession was gained by Proactiva Medio Ambiente in December 1999 and will generate COP29billion in revenues, with COP10.5billion in investments over the contract life. It serves 329,000 with water and 124,000 with sewerage. The Tunja concession serves 151,000 with water and 148,000 with sewerage.

 

Brazil

 

1998

Parana

Strategic stake acquisition

8,100,000 water & sewerage

 

The operating consortium paid BRL249.8million (USD217million) for 40% of Sanepar, the water and sewerage company serving the state of Parana, with Proactiva holding a 35% stake in the consortium. Since 2003, VE’s role in the concession has been eased.

 

Ecuador

 

2001

Guayaquil

30 year concession

2,300,000 water & wastewater

 

International Water (Edison/Bechtel) sold its 90% holding in International Water Services (Guayaquil) Interagua C.Ltda (ECAPAG) to Proactiva in December 2008. Edison wrote down EUR12million on the sale. The principal targets in 2001 were to reduce non revenue water from 70% to 30% and to connect 300,000 people in informal settlements, especially in Isla Trinitaria, where by 2004 piped water was made available for a seventh of the cost of the water vendors. A cross subsidy rate scheme ensures that industrial clients subsidise in part the water that is used by residents. Access to water has increased from 1,260,000 in 2001 to 2,280,000 by 2010, with access to sewerage rising from 934,000 to 1,732,000 during this time, with a respective coverage of 93% and 70%.

 

International Water Services (Guayaquil), contribution to Edison’s profit and loss account

 

EURmillion

2004

2005

2006

2007

Revenues

27

31

34

29

EBITDA

4

8

10

7

Capital spending

N/A

N/A

8

13

 

During the first five years of the concession, Interagua invested USD50million in extending services to the city, connecting 40,000 new clients to the city’s mains water and 20,000 to sewerage systems. Between 2006 and 2011, the company will invest USD250million in new infrastructure, with the aim of providing water services to 95% of the city’s residents and sewerage for 90%.

 

Mexico

 

VE’s Proactiva JV operates two contracts serving a total of 3.1million people. Since 1993, Caasa serves 506,000 people in the city and more than 300,000 in the surrounding areas; 885,000 with water and 875,000 with sewerage. 24 hour per day coverage rose from 40% in 1989 to 85% in 2007. The 30 year concession was granted in October 1993 and is 90% held by Proactiva.

 

Sapsa (Mexico City)

2.43million

Water management services (1993-2009)

Caasa (Aguascalientes)

885,000

Water and waste water concession

 

USA

 

US Filter’s (USF) involvement in public-private partnerships (PPPs) goes back to the first partnership for water services in the USA awarded in 1972. The management contract for Burlingame’s (CA) wastewater treatment facilities remains in USF’s hands. The Bethlehem Steel contract signed in 1950 was the first industrial outsourcing contract in the USA. Upon the purchase of US Filter by Veolia Environnement in 1999, US Filter and the former Professional Services Group of Aqua Alliance were merged to create North America’s largest water and wastewater outsourcing company, in 2003 serving 14million people in 650 communities and thousands of companies across all industrial and commercial markets through 91 water and 185 wastewater treatment plants. According to Public Works Financing, US Filter has been the North American market leader in PPPs in recent years. Following the sale of the non-core activities, US Filter Operating Services has been renamed Veolia Water North America (VWNA). The 2002 Indianapolis contract covering 800,000 people was terminated in 2011 and sold by the city to Citizen’s Energy Group with VW getting a USD 29million contract termination fee.

 

2010

Buffalo

10 year management

Water

 

Serving the community in NY State, the contract is worth EUR38million.

 

2010

Fulton Country

5 year management

Wastewater

 

Serving the community in Georgia, the contract is worth EUR38million.

 

2009

Mapleton

15 year O&M

Water

 

The contract will generate revenues of USD29million.

 

2008

Oklahoma

4 year O&M

Water

 

This is an extension of a contract that has been sunning since 1985 and the latest phase will generate total revenues of EUR29million.

 

2010

New London

17 year O&M

50,000, water & wastewater

 

New London is in Connecticut. The contract will manage the sewerage services for 14,000 customers and water services for 6,000 customers with total revenues of EUR37million. The original 2008 contract was due for renewal in 2017, but a new contract worth EUR53million was awarded in 2010.

 

2007

Milwaukee

10 year O&M

1,000,000 wastewater 

 

Awarded in December 2007, the EUR272million contract covers the management of the regional liquid waste management network of Milwaukee, Wisconsin and management of the production of Milorganite, fertiliser granules produced by the drying of residual mud from the waste water purification plant. 

 

2007

Tampa Bay

16 year DBO

Water treatment

 

A USD158million contract to expand the regional water treatment plant in Florida from 272,500m3 per day to 454,200m3 per day, which will enter service in 2010. VE will operate the facility for 13 years from then.

 

2006

NY State

7 year DBO

Wastewater treatment

 

A USD 45million contract for the 1.5million gal/day (7,000m3/day) facility serving Rockland County.

 

2005

Gresham, Oregon

7 year O&M

106,000 wastewater treatment

 

The contract is worth USD21million and involves handling 20million gal/day of effluent. 

 

2004

Richmond, CA

18 year O&M

Wastewater treatment

 

The contract is worth EUR50million.

 

2004

Virgin Islands

20 year BOT

75,000 wastewater treatment

 

Two 18,000m3/day wastewater treatment facilities are to be constructed at St. Croix and St Thomas. Both facilities were expected to enter service at the end of 2006, generating revenues of USD126million throughout their contracts. There is also a five year renewal option. 

 

Canada

 

Veolia Water Canada (VW Canada) is a subsidiary of VWNA. Its activities draw from the USF operations and, since 1976, VW Canada has gained 22 municipal O&M contracts. With the exception of Moncton (New Brunswick) all identified contracts are in Ontario.

 

2006

Brockton

Five years, O&M

10,000 water & wastewater

 

The contract announced in July 2006 involves the management of three water treatment plants with a capacity of 2.29mg/day and one wastewater treatment plant with a capacity of 1.98 mg/day. Revenues will be USD0.47million pa.

 

1997

Haldimand/Norfolk

O&M

200,000 wastewater

 

The original contract in 1997 was for both counties. In 2004, separate contracts were drawn up for each county. The Norfolk contract covers three WWTWs with a capacity of 24mg/day and the Haldimand contract is for four WWTWs with a capacity of 16mg/day.

 

1999

Toronto

15 years, DBO

1,000,000 wastewater biosolids

 

The contract covers the biosolids dryer and pelletiser facility serving the city’s 216mg/day Ashbridges Bay WWTW.

 

1998

Moncton

20 years, DBFO

100,000 water

 

This was the first major PPP contract gained in Canada. It was agreed in April 1998 and covers a 94,635m3/day (25mg/day) water treatment facility. The CAD85million contract will save the city some CAD12million on anticipated capital costs. 

 

Six other contracts have been identified:

 

Location

Date

Population

Service

Bayfield

N/A

2,000

Water

Georgian Downs

2001

1,000

Wastewater

Goderich

2000

15,000

Water & wastewater

Huron-Kinloss

2003

N/A

Water

Port Stanley

1997

2,500

Wastewater

Varna

2001

500

Water

 

VE in industrial outsourcing

 

21% of VE’s water turnover in 2000 was with industrial clients, which rose to 33% by 2006. VE’s industrial outsourcing contracts have a typical duration of between 3 and 10 years, although an increasing number of contracts now run for 15 or 20 years. Overall multiservice revenues were EUR400million in 2003, rising to EUR440million in 2006, with EUR370million in large industrial client contracts gained that year. During 2003-04, Veolia Environnement signed several multiservice contracts (water, waste and energy) with industrial customers for cumulative revenues of around EUR1.25billion. VE’s multiservice customers include Arcelor, Aventis, BP, Novartis, PSA, Renault, Solvay and Total. Veolia’s 15 year contract with Renault was expanded in 2006 to include a five year management contract covering all service facilities in the Paris region with the aim of cutting expenditure by 20% during this period. The Novartis contract was renewed for 7 years in December 2007 and will generate EUR980million in revenues.

 

 

Industrial outsourcing in the Americas

 

In the US, USF enjoyed a 53% market share for identified industrial water and wastewater outsourcing services in 2002, according to Public Works Financing. Major recent developments include a 20 year, USD66million contract with Alon, USA, to manage the water, wastewater, sludge and groundwater facilities at its Big Spring refinery in Texas and the acquisition of MCS Technologies LLC, a leader in the refinery waste separation and treatment services market, based in Corpus Christi, Texas. The 15 year IPSCO Steel contract was gained in 1999 while the USD100million Sunoco contract was gained in 1998. Contracts gained in 2000 include Westlake (15 year, USD75million), Conoco (USD30million), GM (USD30million) and BP (USD1.3million). In 2001, VE gained a EUR300million 15 year industrial services contract for Usinor’s Vega do Sul facility in Brazil. The 10 year effluent management contract for Millennium Chemicals, signed in 2001, is worth EUR165million.  

 

In 2003, USF gained contracts with the Dupont and Kerr-McGee chemical and energy groups for terms of between 15 and 20 years with an aggregate estimated total revenue of more than USD100million.

 

Industrial outsourcing in Europe

 

Veolia Water Industrial Outsourcing provides water and wastewater management services to industrial customers in the UK and Ireland. Contracts include a 10 year contract with Shell to supply all of their chemical and oil refineries on site with up to 3,500m3/day of softened water on a DBO basis, and a 10 year O&M contract with Mettis Aerospace (the aerospace component manufacturer) regarding its effluent treatment plant as well as to supply its manufacturing operations with recycled process water. During 2002, a EUR27million 15 year contract with Arcelor Packaging and a EUR11million 12 year contract with Smurfit Cellulose du Pin were gained in France, both for effluent treatment. 

 

In October 2001 VE acquired Depurazioni Industriali (DI) from Italy’s Montedison. DI specialises in the treatment of industrial waste water, and generated EUR8million in revenues in 2001. The company owns three plants where it treats effluent from three industrial sites operated by Montedison’s Cereol and Novaol under 20 year management contracts, along with effluents from third parties. VE also reached a partnership agreement with the Montedison group for a three year exclusive right between Veolia Water and the four companies (Cereol, Cerestar, Provimi and Beghin Say) resulting from the 2001 Eridania Beghin Say contract, covering the outsourcing of water management at over 50 industrial sites throughout Europe. VE believes that the industrial water outsourcing service market in Italy is worth EUR300million.

 

In the Czech Republic, a EUR20million 10 year contract with Spolchemi involving the design, construction and operation of an effluent treatment plant was signed in 2001. In 2002, a EUR5million, 10 year water and wastewater services contract was signed with Cutisin’s Jilemnica, a subsidiary. In September 2003, Veolia Water gained an industrial services contract with Synthesia, a member of the Unipetrol Group covering the operation of Synthesia’s wastewater treatment facility. The 200,000 PE plant also treats wastewater from the city of Pardubice (population of 100,000 in eastern Bohemia), where the company is located. The 10 year contract will generate revenues of EUR90million.

 

Other contracts in the Czech Republic include: Glaverbel Czech (producer of flat glass-process water supply); Termo Decin (operation of water management facilities); Cutisin (producer of food packaging-wastewater and process and drinking water); ICN Czech Republic (pharmaceutical-operation of an industrial and municipal WWTP complex); Eastman Sokolov (producer of commodity products-wastewater and drinking water); Keramika Horni Briza (ceramic tiles-wastewater treatment plant);  Intersnack (Ceske Budejovice); Airport Line; Hennlich (Usti nad Labem); Marius Pedersen (Plzen);  Rudolf Jelinek (Zlin) and Setuza (Olomouc).

 

Veolia Water signed a contract in Hungary with Hajdú-Bét, a major poultry slaughterhouse located in Debrecen, in the east of the country. The 3 year contract covers the operation of a wastewater pre-treatment plant and will generate revenues of EUR1million.

 

Other contracts gained in 2003 included Johnson Matthey (United Kingdom) MD Papier GmbH & Co. (Germany), and Grande Paroisse S.A. (France, a subsidiary of the Atofina Group). Total revenues for these contracts will be EUR57million. A EUR78million 10 year contract signed with Corus Packaging Plus in Trostre (Wales, UK) in 2004 concentrates on effluent treatment services.

 

Outsourcing in Asia & Oceania

 

Australia

 

In September 2008 Veolia Water and AquaNet Sydney Pty Ltd (part of the Jemena Ltd group) signed a contract with the Sydney Water Corporation for the first private scheme provide recycled water to industrial users in New South Wales. This will ease demand on Rosehill and Camellia’s drinking water supplies, in western Sydney by providing 4.3billion litres pa of water for major industrial customers, with a future capacity for a further 3billion litres of water per year if needed. The BOOT contract will generate revenues of EUR122million over 20 years with a EUR30million 20,000m³ per day water recycling facility being developed in 2009.

 

A EUR43million contract was signed in 2006 for taking over water treatment at the Bayswater Power Plant run by Macquarie Generation and serving Sydney and New South Wales. The project includes two years of design and construction works and 5 years of O&M.

 

Malaysia

 

In September 2002, VE signed a contract with Petronas for outsourcing services in water treatment and supply at the Kertih petrochemical complex in Malaysia. The 20 year contract does not involve any investment on the part of Veolia Water. The company will operate a potable water production plant with a capacity of 250,000m3/day and a distribution network serving customers such as BP Chemicals, Mitsui and Union Carbide, which work with Petronas in the petrochemical complex. The contract will generate revenues of EUR200million over its lifetime.

 

Singapore

 

VE signed a six year contract worth EUR53million for the construction and operation with Showa Denko, a subsidiary of the Japanese group Showa, for an ultra pure industrial water treatment unit in 2006.

 

Korea

 

The USD1billion Hyundai Petrochemical’s Daesan contract (January 2000) runs for 20 years. The Hynix Semiconductors Corporation 12 year EUR900million contract for Hyundai of Korea is the largest industrial water outsourcing contract in the world to date. The contract calls for four ultra-pure water plants and two WWTWs. VE is acquiring the company’s water and wastewater facilities for EUR196million and will generate EUR830million in revenues over the next 12 years. It was extended to 17 years in 2006 and in 2008, a new treatment plant entered service. A contract was gained in 2004 with the Kumho group for the maintenance and operation of water and wastewater facilities at Kumho Rubber Ulsan, and Kumho Petrochemical and Kumho Polychem (15 years, O&M) at the Yeosu National Industrial Complex.

 

In 2008, VE gained a EUR180million 15 year contract to construct and operate a water treatment plant serving Dongbu Steel in Asan Bay.

 

Thailand

 

Global Utilities Services Co. Ltd (Thailand) is a JV between Veolia S.Napa (49%), Industrial Estate Authority of Thailand (49%), and the IEAT Provident Fund (2%). GUSCO currently has 8 industrial water management contracts in Thailand, including Sony, Egco, GM and Ford, with a THB900million (USD21.2million) turnover or USD2.65million pa per contract.

 

In May 2007, a 15 year DBO contract was signed with PTTPE, worth EUR75million for the construction and operation of a water treatment plant.

 

China

 

In January 2006, a 25 year industrial wastewater management contract was agreed with Sinopec at Beijing Yansan PetroChemical’s Yanshan facility, 50km south west of Beijing. The EUR249million contract involves running four wastewater treatment plants with a total capacity of 129,000m3/day including the recovery of 40,000m3/day of process water.

 

Two water contracts were gained in 2007; Tianjin Soda (construction and operation, 27 years, worth EUR492million) and Qingdao Soda (operation of a water demineralisation facility for 25 years, generating EUR33million).

 

Multiservice contracts

 

VE has 15 multi service contracts, which in 2008 generated revenues of EUR480million and have a combined backlog of EUR3.3billion. A EUR60million 10 year contract was gained in March 2004 by VE’s Globalis GmbH for environmental services at Visteon’s German site in Duren. This was the first multi service contract awarded in Germany. In April 2005, PSA Peugeot Citroën outsourced the environmental management activities of its new factory in Trnava, Slovakia to VE. The eight year contract will generate revenues of EUR60million.

 

Three major contracts were gained in 2008, all of which involved water and wastewater services. Artenius (Sines, Portugal) includes for water supply and effluent treatment (15 years, EUR730million), General Motors (Luton, UK) includes water supply (5 years, EUR17million) and Diageo (Elgin and Cameron Bridge, UK) includes effluent management (15 years, EUR210million). 

 

Contact Details

Name:

Veolia Environment SA

Address:

42 Avenue de Friedland, 75008 Paris, France

Tel:

+33 1 71 71 10 00

Fax:

+33 1 71 71 11 79

Web:

www.veoliaenvironnement.com

www.veoliawater.com

 

www.generale-des-eaux.com

 

Henri Proglio (Chairman)

Antoine Frerot (CEO)

Pierre-Francois Riolacci (CFO)

Jean-Michel Herrewyn (CEO, Veolia Water)

Paul-Louis Girardot (Director, Generale des Eaux)