2004-12-02 | Veolia Water signs significant extension on water management contract in the USA
Veolia Water, the Water Division of Veolia Environnement, has been awarded a significant contract extension on its initial contract for wastewater management by the City of Richmond, California. Veolia Water North America is now called on to manage the city's wastewater and stormwater systems. This 18-year agreement represents total turnover for the period of around 61 million euros.
The city's decision amends the initial 20-year wastewater treatment contract signed in 2002, covering the operation and modernization of Richmond's wastewater treatment facility. Short-term objectives in this initial contract required bringing the wastewater treatment facility into compliance with environmental standards and improving odor control.
The achievement of these objectives ahead of schedule and on budget has given the city the confidence to sign a new contract with Veolia Water North America for managing and improving the collection systems. Like the initial contract, this extension calls for substantial modernization and maintenance work, financed by a public loan, to deal with inflow and infiltration problems that contribute to overloading of the wastewater plant during winter storms.
"This contract extension entirely reflects our development process in the USA. It demonstrates that the city authorities recognize the advantages of delegating the management of their water and wastewater entire systems to an experienced private operator. Our approach is based on a long-term partnership, allowing city authorities to improve their systems and infrastructures, while at the same time bringing them into compliance with environmental regulations," said Antoine Frerot, Chief Executive Officer of Veolia Water.
Veolia Water, the water Division of Veolia Environnement, is the world leader in water and wastewater services. Specialized in outsourcing services for municipal authorities, as well as for industrial and service companies, it is also one of the world's major designers of technological solutions and constructors of facilities needed in water and wastewater services. Veolia Water serves 110 million people worldwide. With 77,723 employees, its 2003 revenue amounted to 11.3 billion euros.
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. The company has operations all around the world and provides tailored solutions to meet the needs of industrial and municipal customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of 28.6 billion in 2003.
Analyst and institutional investor contact: Nathalie Pinon +33 1 71 75 01 67
US Investor contact: Brian Sullivan +(1) 630 371 2749