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Paris, Dec. 22, 2003 -- Veolia Water, the Water
division of Veolia Environnement, announced that it had signed a
major contract for municipal outsourcing services with the City of
Shenzhen in China.
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The contract, announced Dec. 22, covers the
production and distribution of water, customer relations, and the
collection and treatment of wastewater. The 50-year contract was
awarded after an international invitation to tender and is worth
total revenue of over 8.5 billion euros.
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Shenzhen, which is located on the border with
Hong Kong, is one of China's most important business hubs. Veolia
Water's contract covers the Shenzhen special economy zone (the
city's business district), which currently totals more than 2.2
million people.
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Under the terms of the contract, Veolia Water,
associated with a partner, the investment company Beijing Capital
Group, will acquire 45% of Shenzhen Water Group Company Ltd. The
remaining 55% will be owned by the Shenzhen municipality. For
Veolia Water, the contract involves a capital investment of 100
million euros.
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Veolia Water will take charge of the management
of Shenzhen Water Group, which will count 2,400 employees.
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"This latest success comes 18 months after
signature of the contract with the City of Shanghai for the
management of water services for the Pudong business district, and
is of a similar size. It confirms the credibility that Veolia
Water has earned with Chinese municipalities to deal with
contracts of this size and importance, while at the same time
limiting the risks and capital investments for the company,"
said Antoine Frérot, Chief Executive Officer of Veolia Water.
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With this new contract for comprehensive water
services in a leading Chinese economic zone, Veolia Environnement
further strengthens its position in this market. Established in
the country since the 1980s through its water and waste management
divisions, Veolia Environnement manages major contracts,
especially in Shanghai, Tianjin, Qingdao, Beijing, Guangzhou and
Hong Kong.
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Veolia Water is a global provider of water and
wastewater services for municipal authorities, as well as
industrial and service companies. It provides the entire range of
outsourcing and design-build services. Veolia Water serves over
110 million people worldwide. With 77,600 employees, its 2002
revenue amounted to 13.3 billion euros.
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