Veolia Water wins major water management contract in one of China's top tourist destinations in South China

Paris, June 14th 2007. Consolidating its position as leader in providing populations with water services in Asia, Veolia Water has just won its 23rd major 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 to these three plants. Veolia Water will also manage a wastewater treatment plant which has 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 1950 local employees.
Commenting on the contract, 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."
Indeed, Veolia Water has significantly grown in China since the 1990's. The company was the precursor for the full management of a water distribution network in the People's Republic of China, and with the Pudong Shanghai contract signed in 2002, Veolia was the first private company permitted to be involved in full water services in China. Other major contracts signed in recent years include Shenzhen, Kunming, Liuzhou and Lanzhou. The company now operates in 20 out of 34 provinces, with a total of 23 contracts, in different municipalities, autonomous areas and special administrative regions, serving the water needs of 21.39 million inhabitants.
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 industrial and service companies, it is also one of the world's major designers of technological solutions and constructor of facilities needed in water and wastewater services. Veolia Water serves 108 million people worldwide. With 70,700 employees, its 2006 revenues amounted to €10,08 billion. www.veoliawater.com
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. With more than 300,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in four complementary segments: water management, waste management, energy management and freight and passenger transportation. Veolia Environnement recorded revenue of €28.6 billion in 2006. www.veolia.com
Contacts
Veolia Water
Caroline Clopet
Tél : +33 (0)1 49 24 32 74
caroline.clopet@veoliaeau.fr
Veolia Environnement
Marie-Claire Camus
Tél : +33 (0)1 71 75 06 08
marie-claire.camus@veolia.com