2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
Ondeo and poverty reduction
In 2003, Ondeo provided water to 46.5million people in developing economies, including 8.7 million
people below the poverty line worldwide. This includes 2.5 million in South Africa, where they are
within 200m of a standpipe. Approximately, 7 million people have been connected to piped water
supplies through service extensions by Suez.
France
Suez has been VE’s chief competitor in France (and globally) more or less since 1880. By 1958, Suez
had 300,000 subscribers in France. The 1972 acquisition of Degrémont SA saw the company move
from straightforward service provision to a more broadly based design, build, operate and transfer
contract approach. Suez acquired SDI in 1991, gaining 3% of the French water market or some 1.5
million people. By 2001, Suez provided 17 million people with water and 9 million with sewerage
services, where is has since remained. The sewerage market is growing at an appreciably faster rate
than the water market. The company currently has 2,660 contracts with various municipalities and
communes in France, representing 21% of the water and 14% of the sewerage market. In 1997, Suez
acquired all the outstanding shares in Degrémont SA.
It is likely that there may be increased pressure for the market to be seen to open up in the future.
Since the ending of Droit d’entrée in 1995, Suez has not made appreciable progress in gaining new
contracts in France. At the same time, with two exceptions, no contracts of material significance have
been lost and most of its main contracts are not due for renewal until 2005.
Spain
Suez’s main involvement in Spain is through its 25.8% stake in Aguas de Barcelona’s (Agbar) equity,
via its 51% holding of Hisusa SA, which in turn holds 47% of Agbar, along with its direct 1.5% holding
in the company. Agbar’s activities are described in a separate entry.
Belgium
Suez’s Watco provides water to some 300,000 people in Belgium. Turnover rose from €29.6 million in
1998 to €47.7 million in 2000, before falling back to €40.5 million in 2001.
Italy
1998 Aqua Toscane 30 year concession 40,000 water and sewerage
Suez holds 100% of Aqua Toscane, which concentrates on water provision for Fiezole, Montecatini
and Ponte Buggianes, Florence in Tuscany.
1999 Arezzo 25 year concession 350,000 water and sewerage
In January 1999, a Suez-led consortium gained the first international tender award for a water and
sewerage concession, following the belated liberalisation of the market in the wake of the 1994 Galli
law. Suez’s consortium holds 46% of the Nuove Acque, with 54% being held by public entities. The
contract was formally signed in June 1999. The concession will in turn form a JV with the 37
communes involved.
2003 Pisa ATO privatisation 800,000 water & wastewater
A 45% stake in Acque SpA was acquired by the ACEA led consortium for €19.2 million. Acque is
Tuscany’s ATO-2, serving 57 communes. The concession will generate €1.2 billion in revenues.
2003 Siena/Grosetto ATO privatisation 350,000 water & wastewater
A 40% equity stake in the Acquedotto de Fiora was acquired by the ACEA led consortium for €19.3
million, with a concession life of 25 years. The ATO-6 covers 56 communes and required some €433
million in capital spending.
2003 Florence ATO privatisation 1,200,000 water & wastewater
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Pinsent Masons Water Yearbook 2005 – 2006