2008 - 2009 - Pinsent Masons Water Yearbook 2012 - 2013

PART 3(i): COMPANY ANALYSIS MAJOR PLAYERS - VEOLIA
FRANCE
This was awarded for upgrading the Lingzhuang water treatment works, which has a 500,000m 3 /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 250,000m 3 /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
2004 Kumdan 23 year BOT 150,000, wastewater treatment
The Kumdan WWTW is located near Incheon. The facility will have a capacity of 40,000m 3 /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,
70,000m 3 /day and Songdo, 30,000m 3 /day) with a total capacity of 100,000m 3 /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) and in April
2007, VE gained a three year O&M contract for a 283,000m 3 /day wastewater treatment plant serving
500,000 people in Chiba, which will generate total revenues of EUR17.8million.
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 240,000m 3 per day water treatment plant contract was awarded in June
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Pinsent Masons Water Yearbook 2008-2009