Veolia Water Wins Water Management Contract in South China

June 22, 2007

Veolia Water has won its 23rd contract in China, for the complete management of the drinking water service and the operation of a wastewater treatment plant in the leading economic city of Haikou, the capital of one of China's top tourist destinations, on the Island of Hainan, South China.

The contract, worth an estimated consolidated turnover of 780 million Euros over 30 years, was signed with the Haikou Water Group who launched an international tender for the acquisition of 49% of the Haikou First Water Co. Ltd, which assures the total management of the drinking water service to 800,000 inhabitants in the area.

The project will include three drinking water plants with a global capacity of 490,000m3/day, a drilling production area in a natural aquifer with a capacity of 200,000m3/day, and the water distribution network of 1,700 km that is associated with these three plants. Veolia Water will also manage a wastewater treatment plant with a capacity of 300,000m3/day, along with the eight Client Service agencies that interact closely with the community. Altogether, the water and wastewater services include 1,950 local employees.

Antoine Frérot, chief executive officer of Veolia Water said, "We are very proud to have been chosen as the supplier for the management of water services in one of China's preferred tourist destinations. The management of drinking water and wastewater services is of special importance on an island, particularly during high tourist seasons, and requires strict control of sustainable water resources. This contract reinforces Veolia's growth in Asia and illustrates our company's know-how."

Source: Veolia Water