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23.12.2003: Meldung: Veolia Environnement: Contract worth more than 8.5 billion euros

Paris, December 22, 2003

 

Veolia Water wins water management contract worth more than 8.5 billion euros for China"s Shenzhen business district

 

Paris, December 22, 2003 - Veolia Water, the Water division of Veolia Environnement, announced that it had signed today a major contract for municipal outsourcing services with the City of Shenzhen in China. The contract covers the production and distribution of water, customer relations, and the collection and treatment of wastewater. The 50-year contract was awarded after an international invitation to tender and is worth total revenue of over 8.5 billion euros.

Shenzhen, which is located on the border with Hong Kong, is one of China"s most important business hubs. Veolia Water"s contract covers the Shenzhen special economy zone (the city"s business district), which currently totals more than 2.2 million people.

 

Under the terms of the contract, Veolia Water, associated with a partner, the investment company Beijing Capital Group, will acquire 45% of Shenzhen Water Group Company Ltd. The remaining 55% will be owned by the Shenzhen municipality. For Veolia Water, the contract involves a capital investment of 100 million euros.

Veolia Water will take charge of the management of Shenzhen Water Group, which will count 2,400 employees.

 

"This latest success comes 18 months after signature of the contract with the City of Shanghai for the management of water services for the Pudong business district, and is of a similar size. It confirms the credibility that Veolia Water has earned with Chinese municipalities to deal with contracts of this size and importance, while at the same time limiting the risks and capital investments for the company," said Antoine Frérot, Chief Executive Officer of Veolia Water.

 

With this new contract for comprehensive water services in a leading Chinese economic zone, Veolia Environnement further strengthens its position in this market. Established in the country since the 1980s through its water and waste management divisions, Veolia Environnement manages major contracts, especially in Shanghai, Tianjin, Qingdao, Beijing, Guangzhou and Hong Kong.

 

Veolia Water is the leading global provider of water and wastewater services for municipal authorities, as well as industrial and service companies. It provides the entire range of outsourcing and design-build services. Veolia Water serves over 110 million people worldwide. With 77,600 employees, its 2002 revenue amounted to 13.3 billion euros.

 

Analyst and institutional investor contact: Nathalie Pinon +33 1 71 75 01 67

US Investor contact: Brian Sullivan +(1) 941 362 24 35

 

Press release also available on our web site :http://veoliaenvironnement-finance.com

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