May 10, 2001

Suez Signs 30-Year Water Management Contract With Sanya

Gerard Mestrallet, Chairman and CEO of SUEZ, signed a contract on May 8th with the city of Sanya (Hainan Province of the People's Republic of China), for the provision of potable water to the city's 200,000 inhabitants for a 30 year duration.
The contract won by ONDEO Services, a SUEZ subsidiary, provides for the acquisition of three production facilities with a combined capacity of 230,000 m3/d, operation and maintenance and customer service management, for the duration of the contract. The total investment is 36 million euros.
The contract shall be entered into between Sino-French Water Development, a joint subsidiary of ONDEO and the New World group from Hong Kong and the Hainan Tianya Water Industry Holding Company, and will see the incorporation of a Sino-Foreign Joint Venture on a 50/50 basis between the two parties.
This new contract will further strengthen ONDEO's leading position and presence in China where it currently manages 9 long term water contracts in the provinces of Guandong (Tanzhou, Zhongshan and Lianjiang), Liaoning (Shenyang and Changtu), Jilin (Siping), Henan (Zhengzhou), Hubei (Baoding) and Jiangxi (Nanchang). In 2000, overall ONDEO Services activities in China including Macao and Hong Kong, represent a global turnover of approximately 300 million euros. ONDEO services manages 18 water treatment facilities serving an estimated population in excess of 10 million people and ONDEO Degremont has built over the last 20 years more than 110 water plants in China.
Mestrallet signed the Contract on May 8 during his visit to China and Hong Kong. Mr. Mestrallet commented: "This is an important contract in a city experiencing significant urban growth and is a proof of the confidence the Government has in ONDEO's ability to offer sustainable solutions for the provision of water services to the population". He added: "By combining water production and customer services, the Sanya contract is a very innovative one in China".