India: Delhi Jal Board Awards Veolia Water a Contract to Supply Drinking
Water to One Million People in New Delhi
PARIS -- November 14, 2012
Veolia Water India, a Veolia Water subsidiary (Paris:VIE), has been awarded a
contract by the Delhi Jal Board, the water and wastewater authority for the
Indian capital, to manage drinking water production and distribution
infrastructure, as well as the water department, for the Nangloi neighborhood
in the west of New Delhi.
Under the terms of the 15-year contract, which is expected to be signed at the
end of the year, the joint venture set up by Veolia Water India and its local
partner, Swach Environment, will supply drinking water 24/7 to one million
people in Nangloi.
For the duration of the contract, the volume of sales for the joint venture is
expected to be in the vicinity of €282 million.
The capital outlay for rehabilitating the drinking water treatment plant and
the networks and installing household connections and individual meters is
estimated at €65.6 million, 70% of which will be financed by DJB and the
remaining 30% by the joint venture. Work is expected to last four years
This is the largest public-private partnership ever to be formed by New Delhi
in the water sector.
The Nangloi neighborhood is part of an initial pilot phase for the improvement
of the drinking water service in the Indian capital. It will also serve as a
test before rolling out the service, based on the highest international
drinking water standards, across greater New Delhi with its current population
of 18 million.
More 8,000 large towns and cities in India will in future be concerned by
these plans for improved drinking water and wastewater public services.
At the end of 2011, Veolia Water had already won the largest public-private
partnership contract for the drinking water service in Nagpur, a city in
central India. This 25-year contract is for the provision of a service 24/7 to
the homes of the city’s 2.7 million people, one third of whom live in slums.
It should generate sales of €387 million. Before winning the contract for the
entire city of Nagpur, Veolia Water India had demonstrated its capability in
an area covering 8% of the population. It was the success of this pilot
operation that convinced the local authority to go to the next level and
provide the same service across the entire city.
In the area of wastewater, Veolia Water is also very well placed on the Indian
market after winning a contract last May for the construction and management
of a wastewater treatment plant serving New Delhi’s Nilothi neighborhood. The
treatment plant combines the best available technology for converting
wastewater sludge into energy and compost in order to reduce the service’s
environmental footprint and its overheads
These contracts are in addition to the many calls for proposals Veolia Water
India has already won for the management of drinking water services and the
construction of plants in Karnataka, and the management of the water cycle
(drinking water, wastewater and recycled industrial water) in the Mihan
Multimodal International Hub Airport at Nagpur.
“The New Delhi contract confirms our position as the leading company on the
Indian market. In addition to being a symbolic victory in one of the most
dynamic capitals in Asia, it also testifies to our ability for form
partnerships with the leading local firms and to stand out for the excellent
services provided and our social responsibility. It also, and above all,
reflects the trust the Indian authorities have placed in us for the long
term,” acknowledged Jean-Michel Herrewyn, Chief Executive Officer of Veolia
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. With 96,651 employees
in 69 countries, Veolia Water provides water service to 103 million people and
wastewater service to 73 million. Its 2011 revenue amounted to €12.617
Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental solutions. With more than 315,000 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 passenger
transportation. Veolia Environnement recorded revenue of €29,6 billion* in
* Excluding Veolia Transdev revenues currently under divestment
Veolia Environnement is a corporation listed on the NYSE and Euronext Paris.
This press release contains “forward-looking statements” within the meaning of
the provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These statements are based on management’s current expectations or beliefs and
are subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements, including the risks described in the documents Veolia
Environnement has filed with the U.S. Securities and Exchange Commission.
Veolia Environnement does not undertake, nor does it have, any obligation to
provide updates or to revise any forward-looking statements. Investors and
security holders may obtain a free copy of documents filed by Veolia
Environnement with the U.S. Securities and Exchange Commission from Veolia
Press release also available on our web site: http://www.finance.veolia.com
Analyst and institutional investor contact:
Ronald Wasylec - +33 1 71 75 12 23
US Investors contact:
Terri Anne Powers – Tel +1312-552-2890
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