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Suez Wins Water-Treatment Contract for Marseille Area

Suez Environnement, Europe’s second-largest water company, won a wastewater-treatment contract for the Marseille metropolitan area that’s worth 1.2 billion euros ($1.63 billion) over 15 years.

The order will generate an average of 80 million euros a year in revenue over the period, the Paris-based utility said today in a statement. Suez will handle the operating contract through Lyonnaise des Eaux’s subsidiary Seram.

Suez and bigger rival Veolia Environnement SA compete in France and abroad for municipal and industrial water and waste contracts. The utilities are facing pressure in French cities where agreements are up for renewal at lower prices than past contracts.

Veolia earlier this month reached an agreement to renew a water contract for the greater Marseille region, France’s third-most populous metropolitan area, that will reduce prices by about a fifth.

Suez’s Marseille contract will be governed by a specially-created company and calls for construction of a stormwater pond aimed at reducing the amount of untreated pollution that goes into waterways during heavy rainfall.

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