Suez: Thirty Major Contracts Signed Since the Beginning of the Year
During the first half of 2001, Suez won thirty major contracts in its three international core business areas, energy, water, and waste services.
Half these contracts were signed with industrial customers such as Airbus, Durst, PSA Peugeot Citroen, Philips, General Motors, Solvay, International Paper, BOC, and the Athens Airport.
The other half concerned such public authorities as the cities of Pusan (South Korea), Santiago (Chile), Johannesburg, New Delhi, Shanghai, Sanya (China), Bristol, Schwerin (Germany), Brno (the Czech Republic), and Valencia (Spain).
The following were some of the most significant contracts signed since the beginning of the year:
Elyo, the subsidiary of Tractebel which is the Energy Division of Suez, was signed on by Airbus as partner for energy and fluids for the new Toulouse facility which will assemble the future A 380 aircraft. The contract covers the design, construction, financing, and operation of a technical industrial complex to produce heat (super-heated water), compressed air, high-pressure water for fire fighting purposes, backup electricity and cogenerated electricity using a natural gas turbine. The contract's intended duration is 25 years and its projected overall revenues at this stage comes to some EUR 275 million.
Trigen, the U.S. subsidiary of Elyo, has signed a contract with Durst, the U.S. real estate company, to design, build, and operate an electric cogeneration power plant inside a Manhattan building named the New York CyberCenter. This center is to house computers and electronic equipment requiring a large quantity of reliable, high-quality energy. Trigen commits to supply NY CyberCenter customers with virtually completely reliable energy, with power cuts or air conditioning cuts lasting no more than 32 seconds per year. This contract provides 6 natural gas turbines powerful enough to supply the equivalent of a city with a population of 40,000. For Trigen, the contract represents total revenue of more than USD 110 million.
Philips Nederland awarded Epon, the Electrabel subsidiary and largest electricity producer in the Netherlands, the supply of electricity to 17 eligible Philips sites in the Netherlands. The agreement also calls for supplying energy-related services, such as the performance of an energy audit focused on energy consumption in Philips' operations.
The City of Pusan, the second-largest city in South Korea, with a population of 4 million, entrusted the management of its wastewater to Ondeo, the Suez Water Division. This 18-year BOT-type (Build, Operate and Transfer) contract covers the financing and construction of new facilities to include a 135,000 m3 per day capacity wastewater treatment plant and 24 kilometers of main sewer collectors. Total revenues will be approximately EUR 160 million.
Ondeo Degremont was awarded the Sonia Vihar plant contract for potable water supply serving New Delhi in India. This EUR 50 million agreement covers plant construction and its operation for 10 years. The plant will supply 3 million people with drinking water and will be the most important plant of its kind in the Indian capital.
BOC Gases, one of the world's largest producers of industrial natural gas, signed a five-year framework agreement with Ondeo Industrial Solutions. This contract covers water conveyance services and effluent treatment for eight BOC sites in England, Wales, and Scotland.
The City of Bristol (400,000 population) in the U.K. selected Sita, the Suez Waste Services Division, to continue to provide global sewage management. The 7-year contract is worth EUR 121 million and calls for an expansion of Sita services which will enable the city of Bristol to double its household
waste recycling services. This success strengthens Sita's position as the largest waste services operator in the U.K.
General Motors Powertrain, Strasbourg, awarded Sita the responsibility to manage its waste services. The 3-year contract covers collection, sorting control and conditioning of 600 tons of waste per month. Within just a few months' time, early results have reduced the company's industrial waste bill by 18 percent.
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