Veolia Water Group (The former Vivendi Water Group) established in 1853, as a world leader in water services, is competitive for its integration of all water related techniques and services. It is a professional global provider of low cost / high efficiency urban water supply and wastewater treatment services to municipal and industrial customers.

Active in Europe and North America, Veolia Water is expanding its business scope worldwide especially in Asia and Latin America. With 70,700 employees in 55 countries and 11 research centers in the world, it provides high quality services to over 80 countries and generated 2006 revenue of 10.08 billion.

As an environmental service company, the Group consistently focuses on sustainable development, hence acquires tremendous achievements and common recognition from the society. The Sustainable Development Report has been published annually by the headquarter and has been translated in various languages in different countries, among those the Chinese version has been launched since 2003. Meanwhile a HSE system is well established at a group and regional level. The group has past the ISO 14001 and ISO 9002 recognitions. In recent years, Veolia has initiated, organized and participated in many CSR and sustainable development activities. The company is selected by America’s Fortune Magazine 8th of 50 outstanding companies as the “Elite Corporate Citizen” in 2006. Veolia group also toped in Dow Jones Sustainability index and as the leader in public utilities sector.

Investment and Business in China

Veolia Water entered China since 1980’s through its engineering subsidiary by providing technical services, equipment, designs and civil engineering construction. The group officially started its business in China under VIVENDI - GENERAL DES EAUX in 1997.

As a main water service partner of China, Veolia Water runs more than twenty design and technical projects and has invested and been operating in 21 operation projects of urban water supply,  waste water treatment and industrial outsourcing with a total investment over 10 billion RMB, and more than 7000 employees serves in China.

Veolia Water develops very fast and gains many significant contracts in China.

-- In June 1997 GENERAL DES EAUX was granted the First Contract of Concession by Tianjin City so as to renovate and operate Lingzhuang potable water station for 20 years. With a capacity of 500,000 m3/day, the station serves 4 million residents. This operation needed a total investment of US$30 million.

-- In 1998, GENERAL DES EAUX with its Japanese partner Marubeni has won in July 1998 the first contract of BOT (Build, Operate and Transfer) approved by the People’s Republic of China in the field of potable water in Chengdu City (3.2 million residents). The operation term of the station is fixed at 18 years with a total investment of US$106 million and with a capacity of 460,000 cubic meters per day. Lots of subsidiaries of the group have participated in this project: OTV for the design and construction, SADE for the pipeline of the network of water distribution.

-- In 2002, GENERALE DES EAUX won the water supply operation and management contract of Shanghai Pudong, with a concession period of 50 years through international tender. It makes a pioneering pose for the cooperation way of PPP (Public & Private Partnership) in the domestic market and is also a significant event for international water market.

-- 0n 7th November 2002, the 23-year contract signed with Baoji, calls for the refurbishment and extension of two drinking water treatment plants and their operation. Consolidated revenue will amount to 300 million euros during the term. The investment will total 46 million euros and will be financed with the Beijing Capital Group, with which Veolia Water recently set up a partnership to realize some of its projects in China. The total capacity of treated water is 227,000 cubic meters per day, the services covers 500,000 inhabitants.

-- On 1st December 2002, the contract signed with Zhuhai, covers two wastewater treatment plants, an existing plant and one to be built, and their operation for 30 years. Consolidated revenue will amount to 400 million euros during the term. The investment will be 28 million euros, and the designed treatment capacity is 130,000 cubic meters / day.

-- In September 2003, Veolia Water was granted the LuGouQiao wastewater treatment plant 20-year contract by Beijing City. The total investment stands at RMB201million. With a capacity of 100,000 m3/day, the plant is the second of its kind in the nation.

-- In November 2003, Veolia Water signed a new contract in China with Qingdao Drainage Company and GuangDa Group. With a total investment of USD 42.8milllion, the 25-year PPP (Public-Private-Partnership) projects involve two wastewater treatment plants-Mai Dao Plant and Hai He Plant with a total treatment capacity of 210,000 cubic meters / day.

-- On 22nd December 2003, Veolia Water signed a State-owned shares transfer agreement with Shenzhen Water Corporation, Shenzhen Water Corporation transferred 45% of their State-owned shares in the agreement. 

-- In April 2004, the contract of Wastewater Treatment Project of Beiyuan in Beijing has been signed, it is another supporting project of the Olympic Game 2008 Beijing. The total investment of this 23-year BOT contract is 58 million RMB, and the designed wastewater treatment capacity is 40,000 m3/d.

-- Also in April 2004, Veolia has signed another Urban Water Supply Project in Zunyi City of Guizhou Province. The contract covers 2 urban water supply plants with a capacity of 200,000 m3/d in the 35 years contractual period. The transaction value is 152 million RMB.

-- In May 2004, Veolia cooperates with Hoh-hot Chunhua Water Development Co., Ltd in the regard of Water Supply Project holding 51% of the shares (Hoh-hot Chunhua holds 49% shares). The 30-year contract involves rehabilitation and operation of a drinking water production site, including a treatment plant and a wellfield, with a capacity of 515,000 m3/d. The total investment is 355 million RMB.

-- In July 2004, 248 million RMB has been invested in the project of refurbishment of the existing water supply network and water plant of Weinan city in Shaanxi Province together with the construction of a new water plant. The contract duration is 22 years, and a total designed water supply capacity of 160,000 m3/d.

-- In September 2005,  Veolia Water signed a contract with the city of Urumqi (population of 1.2 million), the capital of the Xinjiang Uyghur Autonomous Region, consists of the modernization and operation for a 23-year period of the city’s wastewater treatment plant, in partnership with Beijing Capital Group. The plant’s current capacity of 200,000m3 per day will be raised to 400,000m3 per day over the next three years. Total revenue for Veolia Water over the duration of the contract will amount to 280 million.
 
-- In September 2005, another contract was awarded by the city of Handan (population of 800,000) in Hebei province (south-west of Beijing), comprises the construction of a new wastewater treatment plant with a capacity of 100,000m3 per day (the anticipated total treatment capacity after the extension could reach 300,000 m3/d) and its operation for 25 years. 
   The total investment of the project is 1,290 million RMB.

-- In October 2005, Veolia Water corperated with the Hong Kong-based group Citic Pacific, awarded the 30-year contract under a Public Private Partnership to manage the water services for Changzhou, a fast-growing city of 1.2 million inhabitants, total revenues under this 30-year PPP contract, amounts to a total revenue of more than 800 million euros over the period. 

--In September, 2006, Veolia Water has won a contract to manage the water service for Liuzhou, the second-largest city in Guangxi province, with a population of 1,000,000.

In January 2007, Veolia Water won yet another new contract in China, for a 30 year concession with the Lanzhou Water Supply Company in the capital of the Gansu Province, on the banks of the Yellow River.

-- In January 25, 2006, Veolia Water has just signed an important partnership contract with a subsidiary of Sinopec, China’s leading oil refiner. Under this agreement 25-year agreement between Veolia Water and Sinopec Corp. Beijing Yanshan PetroChemicals (BYP) will set up an equally-owned joint venture to operate facilities to collect, treat and recycle industrial wastewater at BYP’s site at Yanshan, located 50 kilometers to the south west of Beijing.

In April 2003 Veolia Water signed a 15-year outsourcing contract to manage the entire water system at Michelin’s Shanghai plant. The BOOT (Build, Own, Operate, Transfer) contract covers operations & maintenance of all water assets within the facility according to pre-determined operating performance criteria, including the management of raw water, process water, wastewater treatment and solid waste.

Corporate Social Responsibility

In September 1998, Vivendi-CGE had donated movable water treatment equipment to the disaster area in Hubei Province through China Charity Federation for post-disaster clean water supply.

Veolia has established arms length relationship with the Chinese government, and has actively participated in the relevant mechanism of foreign communication; In October 1998, the chairman of Veolia Group had initiated and sponsored the forum of “Europe-China economic dialogue” under the leadership of EU; as a leader of foreign enterprise, he has been nominated the Consultant of International Business Leaders Advisory Council for the Mayor of Beijing as well as the Chairman of International Consultant Delegation of the Mayor of Tianjin.

In 2003, Veolia Group has sponsored the Environment & Sustainable Development Leadership program in partnership with Tsinghua University and Yale University in Beijing, so as to contribute to the sustainable development of China.

As the Chairman of Honorary Committee of French Culture Year in China, Veolia’s chairman was invited to accompany the French President Chirac in his state visit to China in October 2004. During the visit, he has initiated various culture & economic events. The group’s Chairman has devoted himself with all VE Group to the strengthening of the bilateral communication and culture exchange between the two countries, and has perfectly fulfilled his social responsibility as an international enterpriser.

In 2004, Veolia has signed an agreement with the National Training Center for Mayors in China, a branch organization of the Ministry of Construction, to conduct a
Mayors Training Course of Urban Management and Sustainable Development.

In 2004, a research project of three year has been launched between Veolia and DRC (Development and Research Center of the State Council) in terms of analysis into the urban environmental services in China through its mechanism, economic and social aspects, so as to forecast the environmental development tendency in the course of urbanization in China.

On 26th December 2004, the Tsunami tragedy in South Asia has cost dreadful damage to the coastal line of the Bay of Bengal. The President of the company went to Colombo right after the disaster as a member of the delegation from the French Ministry of Health. More than a thousand volunteers were mobilized in the international humanitarianism aid. Over 30 tons of equipment has been dispatched. Veolia has once again perfectly fulfilled its social responsibility.

Prosperous future

Since China has joined WTO, China’s economic development becomes increasingly globalized; the modes of foreign investment and foreign partnership are gradually complying with the international practice. To follow this trend, Veolia Water is constantly enhancing its business in China, and enthusiastically helping the reform and opening of the water and utilities sector in China, in order to promote the vigorous environmental services industry.
 
In 2002 Veolia Water focused its emphasis of global business development strategy on Asia, particularly on China. The company is determined to increase the business proportion of Asian market from the present 2% to 10%-20% in the near future. The accomplishment of this objective will make Veolia Water the primary foreign funded operator in water sector, even one of the leading European investor in China.

website：www.veoliawater.cn