2005 - 2006 - Pinsent Masons Water Yearbook 2012

FRANCE PART 3 (i): COMPANY ANALYSIS: MAJOR PLAYERS
The €1.5 billion 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 and developing the new €258 million plant at
Harnaschpolder by 2006. VE (50%) will lead a JV, along with Delta Water (25%) and Waterbedrijf
Europoort (25%) for operating the facilities and 90km of sewerage network. Delftland serves The
Hague and surrounding areas.
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, Veolia sold its 49% stake in
B 1998 to a company controlled by Mrs Esther Koplowitz. The transaction reduced Veolia
Environnement's net indebtedness by €1.1 billion, with a total cash payment to Veolia Environnement
of €916 million. Veolia Environnement acquired its stake in FCC from Vivendi in 2000 for a total
consideration of €691 million. VE’s has retained Gruppo General des Aguas (water and sewerage),
which in 1997 served 3 million people in Spain and had net sales of F1 billion. The Proactiva joint
venture in Latin America is to continue for the time being.
Portugal
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 F25 million
per annum (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 Esc92 per m³, compared with the current price of
Esc131 per m³ and Agbar’s tender of Esc96 per m³. The municipality intends to invest Esc4-5 billion
on improved sewerage systems over the length of the contract. VE has to pay the first 10 years of
rent in advance (Esc100 million per annum at the start), with the rent rising as new assets are put into
place.
1995 Ourem 25 year concession 40,000 sewerage
The concession to serve Ourem (110km North of Lisbon, and 80km from Mafra) was gained in April
1995 (this leaves 40,000 people, Which represents 15,000 subscribers), with a turnover of F11 million
per annum.
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 F280 million 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 €7 million per year. Valongo is 20km
east of Porto. This contracts operates 2 wastewater treatment plants, 200km wastewater collectors
and a 480km water network. Aguas de Valongo serves 31,000 subscribers.
2001 Paredes 30 year concession 60,000 PE water & wastewater
VE was awarded the concession in January 2001 with a turnover of €4 million for 2002, rising to €7
million per year. 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.
The Czech Republic
VE’s turnover in the Czech Republic rose by 11% to €312 million in 2003 and are set to exceed €350
million in 2005, with 4.2 million people being served by the company. In 2002, VE acquired Bouygues’
50% holding in their CTSE JV.
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Pinsent Masons Water Yearbook 2005 – 2006