Veolia Environnement

A Profile of the
World’s Largest
Water Service
Corporation
 Veolia Water Avoids Countries with the Greatest Water Access Needs

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Veolia Environnement
A Profile of the World’s Largest Water Service Corporation

Executive Summary...........................................................................................................................................................iv

Introduction.......................................................................................................................................................................1

A Brief History: From Regional Water Company to Media Conglomerate...............................................................1

The Veolia Brand: From Recovery to Relapse..........................................................................................................2

A Failed Corporate Water Strategy.......................................................................................................................................2

Pursuing Long-Term Control to Little Avail..............................................................................................................2

Dodging Competition...........................................................................................................................................3

Veolia’s Regional Targets........................................................................................................................................3

Eurocentric with a French Epicenter....................................................................................................................................4

France: Problems on the Home Front....................................................................................................................4

Elsewhere in Western Europe................................................................................................................................5

The Gaze Shifts Eastward...................................................................................................................................................6

Targeting Eastern Europe.......................................................................................................................................6

Treatment Deals in China......................................................................................................................................6

Uncertainty in the Face of Democratic Uprisings in Western Asia and North Africa...............................................7

Failure in Australia.................................................................................................................................................7

Rough Waters in North America.........................................................................................................................................8

Public Operation Works Better in the United States...............................................................................................8

In Conflict with the Human Right to Water........................................................................................................................9

Africa: “Not a Priority”.........................................................................................................................................9

Kicked Out Across South America.......................................................................................................................10

A Growing Movement for Public Water.............................................................................................................................10

Endnotes..........................................................................................................................................................................11
Executive Summary
Veolia Environnement is the largest water service company in the world. From its headquarters in Paris, Veolia operates
hundreds of subsidiaries under many names in dozens of countries. Despite its international presence, the core of its
operations remains in France.  

A Failed Corporate Strategy

Veolia’s corporate profits plummeted in 2008 and remained languid through 2010. In the water division, the company
has suffered major losses from municipalizations and has struggled to obtain new long-term privatizations. Despite its
disappointing performance, the company continued many of the same strategies in 2011 that it had used over the preced-
ing five years:

Seek long-term control of water services. It sought long-term, complex contracts to control entire municipal water and
sewer systems. Such arrangements, however, seem to be increasingly rare for the company.

Dodge competition. For Veolia, complex deals were appealing because they involved less competition. The company and
several of its peers have come under the scrutiny of anti-trust regulators in the European Union.

Target Europe and Asia. Veolia has focused half of its new growth investments in Europe, particularly Eastern Europe,
where it has the financial backing of multilateral lending institutions. The company is also targeting China.

A Growing Movement for Public Water

Consumers worldwide report similar problems when Veolia runs their water and sewer systems. They say the company
charges high rates, provides poor service and fails to make promised improvements.

Many municipalities across France and the United States have taken back their water systems from Veolia to improve
service and lower costs. Even its home city of Paris ended its privatization deal with the company and resumed public
operation to save money for consumers. Elsewhere, the fight for public water continues. Communities from Germany to
Morocco are seeking to remove Veolia and restore public control of their water resources.

Facts and Figures: Veolia Environnement

Headquarters: Paris, France
Divisions: Water, Environmental, Energy and Transportation Services1
Chief Executive Officer: Antoine Frérot2
Employees: 312,5903

Financials (year-end 2010)

Revenue: €34.8 billion ($46.5 billion)
Net Profit: €581 million ($776 million)
Net Financial Debt: €15.2 billion ($20.3 billion)4

Veolia Water A division of Veolia Environnement

Locations: 66 countries
Population Served: 95 million with drinking water service
68 million with wastewater service5
Introduction

V eolia Environnement is the world’s largest water and sewer service corporation, serv-
ing 95 million people with drinking water and 68 million people with sewer service
globally.6 In 2010, the Paris-based multinational made €35 billion in revenue — more
than a third of which came from its water operations — amounting to €581 million in net
profit for its owners.7
As of December 2009, its water division operated at least Jean-Marie Messier became chief executive officer in 1996
728 different entities in 66 countries.8 Because of this, people and led the company on a massive buying spree, culminat-
know the company by a variety names, including United ing in 2000 with a $34 billion takeover of the beverage
Water in Australia and New Zealand, PVK in the Czech giant Seagram’s entertainment division, whose notable assets
Republic, and Apa Nova in Romania.9 No matter what they included Universal Studios and Universal Music. By 2002,
call it, their stories are similar. Consumers worldwide have after six years of hasty and overpriced acquisitions, the com-
reported high rates, poor service and inadequate investment pany had accrued €33 billion in debt. Its bonds were down-
after Veolia took over their water and sewer systems. graded to “junk” status, banks refused to extend any more
credit and its stock price plummeted 60 percent. Confronted
with the company’s ever-weakening financial situation, the
A Brief History: From Regional Water Company to board of directors ousted Messier.11
Media Conglomerate
Veolia’s roots are firmly French. In 1853, the company took The disgraced former executive soon found himself in legal
form under the name Compagnie Générale des Eaux to man- trouble over claims that he disguised the company’s financial
age water systems in France. In the 1980s, after more than problems and misled investors. In 2003, the U.S. Securities
a century as mainly a regional water provider, the company and Exchange Commission fined him $1 million and ordered
began a period of marked international expansion. By the him to relinquish his €21 million severance package.12 In
end of the 20th century, it had transformed into a multina- 2011, a Paris court levied an additional €150,000 fine and
tional media conglomerate called Vivendi.10 gave him a three-year suspended sentence for misusing com-
pany funds.13
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation
The Veolia Brand: From Recovery to Relapse
Vivendi spun off its water and environmental services divi-
sion as Vivendi Environnement in 2000.14 The media con-
glomerate no longer held a controlling stake in the water
company by 200215 and had completely divested from it by
2006.16 Vivendi Environnement adopted the moniker Veolia
Environnement in 2003,17 in what seemed to be an attempt
to distance itself from its disreputable former owner.
Henri Proglio became head of the new company in 2000
and launched a program to rid it of Messier’s more unwieldy
purchases. For example, he auctioned off, piece by piece,
most of U.S. Filter, a large U.S. water treatment company that
Vivendi had acquired for $6.2 billion in 1999.18 It lost $4 bil-
lion when it sold most of U.S. Filter to Siemens in 2004.19
After recovering from some of Vivendi’s excesses, Veolia
began a new expansion program, buying assorted environ-
mental service companies.20 In 2007 and 2008, Veolia spent
about €4 billion on acquisitions, including deleterious take-
overs of large German and Italian waste management firms.21
The company’s 2008 returns were a wake-up call; because of
the economic downturn and a €430 million loss in the value
of its waste management business, the company’s profit fell
by half and its market value dropped 70 percent.22
“It’s in this kind of business that we
get the best margins, because we have
few competitors.” – Antoine Frérot, on
complex privatizations
In 2009, Veolia made a volte-face on its acquisition strategy
and started pruning its businesses. Proglio assured investors,
“For 2009, we have one priority, which is to improve profit-
ability.”23 It aimed to trim operating costs by €280 million and
cut its net investments by at least 40 percent.24 From 2009 to
2010, the company sold off €2.5 billion in assets. It planned
another €4 billion in divestments through 2013.25
Proglio, who led the company through both recovery and re-
lapse, resigned as chief executive officer at the end of 2009,
although he controversially remained chair of its board of
directors for another year. French President Nicolas Sarkozy,
a personal friend of his, had appointed him to head Élec-
tricité de France, the giant state-controlled power company.26
Antoine Frérot was his replacement. Frérot had led Veolia’s
water division for six years and was “the most loyal” of the
company’s four divisional heads, according to one board
member. An analyst at Exane BNP told Reuters that, among
other things, Frérot also seemed unlikely to “go on a mad
acquisition spree.”27
2
Withering Growth in Privatization:
Total Value of Veolia Water’s Principal New
Privatization Deals (in billions of euros)
€12
€10.2
€10
€8
€7.3
€6
€4
€3.0
€2 €1.9
€0.4
0
2005 2006 2007 2008 2009
Note: Estimated cumulative revenue (not adjusted for inflation) of prin-
cipal new water contracts with public agencies as reported in Veolia
Environnement’s annual financial filings with the U.S. Securities and
Exchange Commission from 2006 to 2010. Values exclude renewals
and contracts with private companies.
A Failed Corporate Water Strategy
Pursuing Long-Term Control to Little Avail
In the water sector, Veolia aimed for concessions that gave it
long-term control of municipal water and sewer systems.28
It sought, in Frérot’s words, “much more complex contracts
where we manage the entire water chain” and lengthy con-
tracts because “you can’t create wealth in these complex deals
in the short term.”29 The company wanted greater control, but
without the financial responsibilities that usually came with it.
It continued to shun investing its own money in projects.30
For Veolia, new large privatizations have become rare. From
2005 to 2009, the company’s principal new contracts with
public authorities became smaller in value, shorter in length
and narrower in scope. As a result, the major new privatiza-
tion deals it signed in 2009 were worth 97 percent less than
those signed in 2005.31
As its privatization prospects dwindled, building and operat-
ing treatment plants became an increasingly important source
of new revenue. These deals tended to be less valuable than
concession contracts.32 Perhaps because of that, Frérot told in-
vestors in 2010, “We’re no longer really interested in building
[build-operate-transfer] contracts for water treatment plants.”33
The company wanted to do more than just build and operate
individual treatment plants; it wanted to run entire water utili-
ties, from treatment to distribution to billing.
 Food & Water Watch

For 2010, this water strategy was a bust. Of its main new
water contracts, none were long-term concessions of entire
water utilities.34 The company obtained no new construc-
tion project that could replace three major plants completed
in West Asia, and it was unable to offset the revenue it lost
when Paris remunicipalized its water system.35 Its declining
profitability reflected these failures; Veolia Water’s adjusted
operating income fell 11 percent from the preceding year.36

As a result, Veolia recalibrated its water strategy slightly in

2011. It decided to resume targeting treatment deals, specifi-
cally for industrial plants in Brazil, Russia, India and China.
Nonetheless, it also continued to prioritize large municipal
concessions.37 Frérot explained the appeal of these complex
contracts to investors in 2010: “It’s in this kind of business that
we get the best margins, because we have few competitors.”38
Dodging Competition
Competition in the water service sector is limited.39 For
example, during 2001, one-third of French water contracts
that came up for renewal received a bid from only one com-
pany.40 Globally, Veolia and fellow Parisian company Suez
Environnement dominate the water market.41 In France, they
served four out of five consumers who had privatized water
service in 2008,42 and anti-trust regulators have called into
question certain interactions between these two companies.43
Veolia’s Geographic Targets: Planned
Investments in New Projects, 2011-2013
Emerging Eastern
Countries Europe
21%
30%
Western
Veolia and Suez had jointly owned at least nine companies
that served communities in France, but in 2002, the French
Competition Council ruled that the ventures constituted a
“collective dominant position” and ordered their dismantle-
ment. In March 2010, after a lengthy legal fight, the compa-
nies finally completed unwinding them, with Veolia selling its
stake in six firms and assuming full control of three.44
A month later, in April 2010, the European Commission raided
the offices of several French water companies, including
Veolia, looking for evidence of violations of EU competition
law. The commission said that it had reason to believe that the
firms might be colluding on bids for French water manage-
ment contracts and imposing prices that are “unfair to local
communities and ultimately to consumers.”45
The investigation examined at least two of Veolia’s contracts,
notably including its arrangement with Syndicat des Eaux
d’Ile de France (SEDIF),46 which according to Frérot, was a
“flagship contract” used “as a reference for winning other
contracts.”47 The French consumer group UFC-Que Choisir
has cast doubt on the deal’s merit. It found in 2008 that the
company overcharged SEDIF by €80 million to €90 million.48
Veolia had to agree to cut its profit in half to renew its con-
tract with SEDIF in 2010. The 12-year, €3 billion deal was the
largest of its kind in Europe. Even though Suez was its only
real rival, Frérot told the water industry trade journal Global
Water Intelligence, “The competition for SEDIF was the most

Europe
competitive we have had in the past 20 years in France and
elsewhere.”49
22% North
America Veolia Water’s Regional Targets
27% Veolia’s water privatization plans centered on two continents:

• Europe, particularly France, Germany and the United

Kingdom, as well as Eastern European countries
Source: Veolia Environnement. Presentation. 2010 Annual Results.
March 4, 2011 at 47. • Asia, predominately China.50

3
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation
For 2011 to 2013, the company directed half of its growth
activity to Europe and about one-fifth to “emerging coun-
tries,” with China being the dominant target.51
With this focus, the company sought to exploit the fis-
cal hardships that many governments face, as well as their
increasingly stringent environmental regulations.52 Frérot
seemed to welcome the public sector’s financial problems,
telling a conference call in 2011:
“Looking on the plus side, we have public finance con-
straints, which drive the need for economic efficiency.
This is bringing in more business for us because there is
more and more of an openness to concessions, private
management, etc. And also, despite the crisis, there are
more and more stringent environmental regulations be-
ing introduced, and that plays in our favor.”53
Although budget shortfalls have provided some public of-
ficials with a smokescreen for their privatization schemes,
they have also inspired a number of other local governments
to reassess and end existing water contracts to save money.
In addition to declining water use, Frérot cited “public sector
competition” as the company’s major challenge in the water
sector, notably in France.54
The following is an account of Veolia Water’s activities and
shortcomings in various countries and settings. In some
cases, the company’s failures to provide adequate and safe
water to its customers are particularly grievous.
Where Does Veolia Make Its Money?
2010 Revenues, by Geographic Area
Africa/South
America 6%
Asia/Pacific 8%
North
America 9% France
40%
Europe
(Excluding
France)
37%
Source: Veolia Environnement. Presentation. “2010 Annual Results.”
March 4, 2011 at 12.
4
Eurocentric with a French Epicenter
Despite its international presence, during 2010, Veolia made
more than three-quarters of its revenue in Europe,55 with 60
percent of its operating cash flow from the western part of the
continent.56 Nonetheless, it sought further expansion in the
region. In a 2010 interview with the Dow Jones Newswire,
Frérot said, “I’m convinced that Europe, the European Union,
will offer substantial growth opportunities.”57 Much of its new
privatization activity targeted Eastern Europe.58
France: Problems on the Home Front
Veolia has retained a strong French identity. Its single largest
shareholder, as of December 2010, was Caisse des Dépôts
et Consignations, a financial institution controlled by the
French government.59 Caisse des Dépôts et Consignations
held a seat on Veolia’s board of directors, and together with
state-controlled Électricité de France, owned 13 percent of
the company.60
Veolia was the largest private water operator in France, con-
trolling 39 percent of the market in 2008.61 It served 25 mil-
lion people with drinking water and 16 million with waste-
water service throughout France.62 Although the company
sought to expand there,63 it was having a hard enough time
keeping the contracts it already had.
The Fight for Public Water
Paris: Veolia lost the water management deal for its home
city of Paris at the end of 2009 when its contract expired. The
city decided to bring the operation in-house to save money
and stabilize water rates.64 The company had operated part of
the Parisian water system, which served 2 million people, for
nearly 25 years.65 In 2011, a year after taking over the water
services, the new public utility projected €35 million in an-
nual savings and the mayor announced plans to reduce water
prices by 8 percent.66
Cherbourg Urban Community: In 2005, the Cherbourg
Urban Community municipalized its water system, ending
a management deal with Veolia to lower rates and improve
services.67
Montbéliard: In 2010, Montbéliard decided to terminate its
30-year management contract with Veolia seven years early
because of high rates. The community intended to begin
public operation of the system in 2015.68
Saint-Malo: In February 2011, the mayor of Saint-Malo in
Brittany, France, announced that he wanted to municipalize
the water system when the city’s lease with Veolia expired
the following year.69
Olivet: In 2009, Veolia lost the last of a series of court hear-
 Food & Water Watch
ings to activist group le Groupe d’Action Municipale d’Olivet
(GAMO). The French State Council decided that a law
regulating contract terms applied to preexisting privatizations
and thus limited their length to 20 years from when the law
went into effect in 1995.70 In France, where it is estimated
that four-fifths of the population is served by private water
systems, this has huge consequences, potentially affecting
hundreds of contracts.71
GAMO had been fighting Veolia and its high rates since
1997.72 The company first took control of the Olivet water
system in 1933 with a 99-year concession contract. Origi-
nally the contract was set to run until 2032,73 but the latest
ruling stipulates that it — along with other long-term con-
tracts — must be economically justified in 2015 to run to
maturity.74 While this means that for the time being Olivet
is stuck with Veolia, it also means that many private water
companies in France will now feel pressure to shape up their
behavior.75
Toulouse: In 2010, following an audit of its contract, Tou-
louse negotiated with Veolia to cut water prices by 25
percent.76 Since 1990, when the 30-year concession contract
was signed, water rates had risen at twice the rate of infla-
tion.77 The mayor of Toulouse indicated that the city would
consider public operation of the system when the contract
expires in 2020,78 but community group Eau Secours 31
called for more immediate action.79
Elsewhere in Western Europe
Dubious Sewage Shutdown in Brussels, Belgium
In December 2009, Veolia subsidiary Aquiris unilaterally shut
down its North Brussels wastewater treatment plant, allow-
ing raw sewage from 1.4 million inhabitants to flow into the
Senne, Scheldt and Rupel Rivers for 10 days. A report by a
panel of independent experts concluded that the company
had no legitimate reason for the shutdown.80
Aquiris won a contract to build and operate this plant in
2001 with a proposal to use a wet air oxidation process
known as Athos, a relatively new technology that had never
before been tested on urban wastewater of such a large
scale.81 It has yet to be determined who will pay the estimat-
ed €80 million of required improvements.82
Seeking Public Water in Berlin, Germany
In a nearly unanimous referendum in February 2011, the
people of Berlin voted to expose secret details of the city-
state’s water privatization deal with Veolia and German utility
RWE.83 In 2004, the government had clandestinely agreed
to contract provisions that guaranteed profit to the private
companies, circumventing a 1999 court decision that found
profit guarantees unconstitutional.84
Berlin partially privatized its water and sewer systems in
1999, when Veolia and RWE bought a 49.9 percent stake in
the Berlin Waterworks (Berliner Wasserbetriebe) and received
a 30-year management contract.85 Since then, the utility has
downsized the workforce by nearly 1,000 jobs and increased
water rates by 25 percent.86
Talk of public reacquisition of the utility has been growing in
the city.87 “I consider this backing for the goal of the senate
to buy back formerly privatized parts of the water works,”
Mayor Klaus Wowereit said of the referendum in The Local.88
Before the local referendum, the government had decided to
negotiate with RWE to purchase the company’s share in the
water utility.89
5
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation

Veolia, however, hindered a full remunicipalization by refus-

ing to relinquish its stake.90 Michael Cunnac, the head of the
company’s Berlin branch, told the Inter Press Service News
Agency in 2010, “An end to the concession is out of [the]
question.”91

The Gaze Shifts Eastward

Over the last decade, Veolia has aggressively expanded
through Central and Eastern Europe and China.92 For “these
two major geographical platforms,” Frérot expected “double-
digit growth” over the next few years.93

Targeting Eastern Europe

For 2011 to 2013, Veolia’s principal geographic target was
Eastern Europe, with 30 percent of its new investments di-
rected there.94 Frérot told investors in early 2011, “We have a
strong presence in Western Europe, and we are going to have
a strong presence in Central and Eastern Europe.”95

In 2010, Veolia served 9.5 million people with drinking water
and 8.9 million people with wastewater treatment in Central
and Eastern Europe, making €873 million in revenue. Its pres-
ence was particularly strong in the Czech Republic, Slovakia
and Hungary.96
International financial institutions have backed Veolia Wa-
ter’s privatization efforts in the region. The European Bank for
Reconstruction and Development has invested €175 million
into Veolia Voda, Veolia Water’s Eastern European arm, since
2007.97 In June 2010, the World Bank Group’s International
Finance Corporation announced that it too would invest as
much as €100 million into the company.98 That month, the
company signed a deal to buy United Utilities’ water opera-
tions in Sofia, Bulgaria; Tallinn, Estonia; and Bielsko Biala,
Poland.99
Despite the subsidies, failure has followed the company. It
has lost a number of privatization contracts, including in Rus-
sia; Tbilisi, Georgia; Almaty, Kazakhstan; and Bukhara and
Smarkand, Uzbekistan.100
A Harmful Contract in Bucharest, Romania
Bucharest has encountered many problems since Veolia
subsidiary Apa Nova took over its water and sewer services
in 2000. Within three years, 350,000 people — about 20
percent of the consumer base — had complained about the
company’s prices and billing practices, causing the deal to
come under the scrutiny of national regulators.101 By 2007,
because of ongoing invoice irregularities and inadequate
service, the general mayor at the time was calling the contract
harmful.102
In 2008, the European Court of Human Rights ordered Ro-
mania to pay €10,000 in damages to a Bucharest family who
had lacked drinking water for seven years. It found that the
government failed to enforce a local court ruling that required
Apa Nova to restore the household’s service.103 The next year,
Neculai Onţanu, local mayor of Sector 2 in the city, asked the
city to terminate or modify the contract, accusing Apa Nova
of refusing to extend service to areas in his district.104 Later
that year, the city amended the 25-year concession contract
after the company conceded to waive the city’s debts and to
make additional investments.105
Anger over Rate Hikes in Sofia, Bulgaria
In February 2011, just three months after being taken over
by Veolia, the company’s local subsidiary, Sofiyska Voda,
increased water rates by 9 percent in Sofia and threatened
to shut off the water service of customers who failed to pay
their bills. Sofiyska Voda had operated the water system in the
Bulgarian capital since 2000 when it received the country’s
only water service concession. By 2011, critics were accusing
the private company of underinvestment, poor upkeep and
excessive water loss. It was losing an average of 60 percent of
its water and as much as 90 percent in some areas.106
Treatment Deals in China
Frérot said that Veolia was targeting China because its
environmental regulations and urban issues were similar to
Europe’s.107 The government planned to invest 2 trillion yuan
($304 billion) on water projects from 2011 to 2015,108 and
Veolia presumably wanted a piece of the action.

6
 Food & Water Watch
According to World Bank data, since 1997, Veolia has
had 20 major water privatization deals in China, mostly to
build and operate treatment plants.109 At first the company
struggled to persuade Chinese municipalities to privatize an
entire water and sewer utility,110 but in 2002, Veolia obtained
the country’s first full-service water concession. Through a
50-year contract, the company took over the water services
for 2.65 million people in the Shanghai-Pudong District.111
By 2010, Veolia served drinking water to 40 million people
in the country.112
“When we began in China, it began through BOTs [build-
operate-transfer contracts],” Frérot told Global Water Intel-
ligence. “It has taken six years to convince one municipality
to outsource the global service in Shanghai. In other parts of
the world, it takes longer. It takes ten years. That will be the
case in the Middle East.”113
Uncertainty in the Face of Democratic Uprisings
in Western Asia and North Africa
Veolia had sought to expand in Northern Africa and Western
Asia, particularly the Persian Gulf states,114 but by March
2011, as protests for political reform surged across the re-
gion, the company no longer specifically listed the area as a
target.115
A year before, in 2010, the company entered into a long-
term strategic partnership with Qatari Diar, a sovereign
wealth fund of the state of Qatar, to work on infrastructure
and utility projects in Western Asia and Northern Africa. As
part of the deal, the fund acquired a 5 percent stake in Veolia
and obtained a seat on its Board of Directors.116
At the time, the company didn’t expect an immediate surge
of activity in the region but viewed its long-term prospects
favorably. It planned to get a foothold through desalination
projects.117 It had several contracts with the Sultanate of
Oman, including one it obtained in January 2011 to help run
the water system in the Port of Sohar.118
Because of its relationships with authoritarian regimes, the
company may revisit its involvement in certain countries as
pro-democracy movements gain momentum. In early 2011,
youth-led demonstrations toppled long-standing leaders in
Tunisia and Egypt and invigorated a wave of popular upris-
ings. Protests for jobs and reform had erupted even in Port of
Sohar, Oman.
Trying to Shake Off Water Privatization in Morocco
On February 19, 2011, a day before but not directly related
to massive nationwide protests for democratic reform, citizen
group Attac Maroc held a sit-in at Tangiers city hall to de-
mand the termination of the city’s privatization contract with
Veolia subsidiary Amendis. Hundreds of protesters, fed up
with high utility rates, then marched to and attacked offices
associated with the French firm.119 The company obtained a
25-year concession to run the electricity and water distribu-
tion systems in Tangiers and Tetouan in 2001.120
A month before the sit-in, a group of Moroccan NGOs called
for greater transparency, lower prices and better control of
the water services of Redal, Veolia’s subsidiary in Rabat.121
Veolia (then Vivendi) bought Redal from foreign investors in
2002 and took over the remaining 26 years of a concession
contract to run the water, wastewater and electricity services
in the Moroccan capital.122 By 2010, the company claimed it
was owed 760 million Moroccan dirham ($94 million), and
intended to use this debt as leverage to renegotiate its invest-
ment commitments.123
In an open letter to the mayor of Rabat, the organizations
asserted that water rates in Rabat were notably higher than
comparable cities, and the government made unauthorized
transfers of large sums to Veolia. According to these groups,
Veolia was lagging 25 percent — three years behind — in
promised infrastructure work, which included improving the
sewer system.124
Failure in Australia
In addition to the Persian Gulf, Australia had been a target for
Veolia’s desalination — as well as general water privatization
— efforts, but experiences there should serve as a warning.
A White Elephant in Tugun
In Australia’s Gold Coast region, many critics are calling
7
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation

Adelaide’s water and wastewater services in 1995, when it

obtained a 15-year, $1.5 billion deal.134 The South Australian
government, which sued United Water to recoup the over-
charges,135 decided against keeping the company when its
contract expired in 2011.136

Billing issues were not the only problem. United Water came
under fire in February 2004 after nearly a million liters of raw
sewage overflowed into a creek and onto a local beach.137
There were another two spills later that year,138 angering
South Australian Environment Minister John Hill. “I’m sick of
the excuses about why it’s happened,” Hill told ABC News.
“It’s just not acceptable.”139

Rough Waters in North America

Veolia Water North America, headquartered in Chicago,
Ill., is the largest private operator of public water and sewer
systems in North America.140 In the early 2000s, after high-
profile failures in major cities, the company shifted its
strategy and set its sights on smaller contracts that involved
less public opposition and private competition.141 By 2010,
the company had refocused its efforts back to larger deals to
capitalize on the daunting fiscal crisis afflicting many cities
in the wake of the recent recession.142

Public Operation Works Better in the United

States
Veolia’s growth in the United States has been lackluster. In
2009, despite obtaining seven new contracts, Veolia Wa-
ter North America lost a net of three public-sector clients,
Veolia’s newly finished but now unnecessary $1.2 billion
according to data compiled by industry publication Public
desalination plant a “white elephant.”125 The plant — the
Works Financing.143 Over the five-year period from 2005 to
most expensive of its kind in Australia — is a drain of public
2009, the number of its governmental clients fell slightly,
resources.126 In March 2010, when reservoirs in the region
from 173 to 166.144
were nearly full, the desalination plant still had to operate at
a minimum of one-third capacity, costing $32,000 a day.127
A number of cities and towns have ended arrangements with
The desalinated water costs more than three times as much
the company and resumed public operation of their systems
as reservoir water.128
to save money or improve service. This includes deals in
Coxsackie, N.Y.,145 and Overton, Texas,146 as well as Peta-
Veolia obtained a contract to design, build and operate
luma, Calif., and Burley, Idaho.
the plant in 2006.129 Soon after the plant opened, concrete
cracked and other components corroded due to the use of
The company hasn’t given up. It saw opportunity in the water
substandard steel.130 An interview with an anonymous former
supply issues facing California,147 and the state has become
contractor from the plant revealed that over-chlorinated
the front line of its fight to privatize U.S. water systems. Lau-
water caused an additional $6 million in damage. “This is a
rent Auguste, head of Veolia Water Americas, wanted to take
major project and this sort of stuff should never have hap-
on consumer organizations that support public control of wa-
pened,” he told the Courier Mail.131
ter services.148 With this confrontational approach, in 2010,
it launched an aggressive campaign against a community
Removed from Adelaide group that sought to prevent it from taking over their waste-
water treatment plant in Novato, California. Veolia narrowly
In 2011, Veolia-owned United Water lost its contract in
won a public vote on the issue after spending $240,000
Adelaide132 and had to repay $14 million that it overbilled
electioneering.149
taxpayers from 2001 to 2006.133 The company took over

8
 Food & Water Watch
Indianapolis, Indiana: Sinking the Flagship
Veolia lost its largest water contract in the United States in
2010 when Indianapolis terminated it more than a decade
early.
The company received a 20-year, $1.5 billion deal to manage
the city’s water system in 2002.150 Since then, workers, con-
sumers and government officials alike have all had problems:
• Employees claimed the company cut their benefits by
more than $50 million.151
• Residents accused the company of using unfair billing
practices and overcharging them.152
• A city councilmember criticized the company for cutting
back on staffing, water testing, treatment chemicals and
maintenance, and other members questioned whether
the company had a financial incentive to fudge quality
tests.153
The company apparently lowballed its bid to win the deal,
but after several years of multimillion-dollar losses,154 the
company finagled major concessions from the city. A contro-
versial contract amendment signed in 2007 shifted millions
of dollars in liabilities from the company to the city while in-
creasing city’s annual payment to the company by $1.9 mil-
lion.155 In total, the amendment cost the city more than $144
million.156 State regulators refused to allow the city to recoup
some of these additional expenses in a rate increase.157
By 2010, with infrastructure needs mounting, the city opted
to wash its hands of the water utility altogether and decided
to sell it, along with the sewer system, to the nonprofit Citi-
zens Energy Group.158 As part of the transfer, the city agreed
to pay Veolia $29 million to terminate the deal early. Citizens
Energy believed it could realize savings not possible within
the constraints of the contract.159
Petaluma, Calif.: In 2007, after nearly 30 years of private
operation of its wastewater treatment plant, the city coun-
cil unanimously voted to take back the system from Veolia,
expecting to save 10 percent ($1.6 million) in the first three
years of public operation.160
Burley, Idaho: In 2009, after cancelling its wastewater con-
tract with Veolia, the city had to make thousands of dollars in
repairs to the treatment plant, blaming the company’s neglect
and poor maintenance.161
Tama, Iowa: In 2011, after nearly 20 years of private opera-
tion of its water and sewer systems, Tama, Iowa, sought to
terminate its contract with Veolia, believing it could save
money with public operation.162
In Conflict with the Human Right to
Water
The experiences of communities across the planet show
that Veolia does not offer a solution to the world’s water
problems. Indeed, underlying its corporate strategy is a tacit
recognition that water privatization in general does not work
for the poor and conflicts with the human right to water. The
company seems to want to hide this fact and often presents a
different public face from the one it shows investors.
In a March 2010 letter, Veolia Water told the U.N. Human
Rights Council’s independent expert on the issue of human
rights and water that the core of its job as a water operator
was to “bring water to those who need it most.”163 In reality,
however, the company has avoided places with the great-
est water needs. In 2010, Veolia Water did not have offices
in countries with the least access to safe drinking water (see
map on inside cover).164 This is partly because public resis-
tance to privatization and opposition to high water bills made
it unprofitable for the company to run water systems in many
places in the Global South.165
In its letter to the Human Rights Council’s independent
expert, the company boasted about how it has expanded
water access, “particularly to those living in remote areas.”166
Nevertheless, that same month, it told credit analysts on Wall
Street that it prioritized “financially sound clients” in dense
urban areas.167 The rural poor thus were of little concern to
Veolia, despite its pretenses.
For these communities, Veolia’s absence is beneficial. The
rate hikes needed to generate corporate profit could price
struggling households out of safe water service. When
low-income neighborhoods cannot afford to pay their bills,
private companies often focus improvements in wealthier
9
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation

areas where they can recoup their investments and grow
stockholder value.168
Veolia does operate in certain low- and middle-income
countries, but Frérot told Dow Jones Newswires, “we won’t
give them the priority in terms of investments.”169 Veolia’s
customers in Libreville, Gabon, know all too well the human
consequences of underinvesting in water resources.
Not long after the 1997 privatization, problems began to
surface. “The water distribution system faces shortages going
back to 2003 as a result of obsolescence and saturation of
the transport system for treated water,” Seraphin Moundoun-
ga, a government spokesman told Reuters.177 At the end of
2009, after years of prolonged and repeated service inter-
ruptions in Libreville, the government decided to revise its
contract with SEEG.178

In January 2011, a family of five died in Libreville when a

Africa: “Not a priority”
Half of Veolia’s major water operations in Africa were linked
to loans from international financial institutions, accord-
ing to World Bank data. In 2010, Veolia ran water systems
in five African countries: Gabon, Morocco, Namibia, Niger
and South Africa. A loan from the European Investment Bank
backed the privatization in Namibia and one from the World
Bank’s financial arm backed the deal in Niger. Since the mid-
1990s, Chad, Comoros and Gambia have terminated deals
with the company. All three contracts were associated with
World Bank loans.170
The company is not prioritizing new privatizations in the
region, but it is not leaving the places where it already oper-
ates. In 2010, when an investor asked about the company’s
plans for Africa, Frérot responded: “…Africa is not a priority
for the Group, but we do not intend to withdraw from Africa
though; we want to work with partnerships and not just with
our own money.”171
candle — necessary because of power outages — set their
house alight. “We all tried to extinguish the fire and save
the lives of victims, but things were not easy, especially as
water taps were dry in the district,” neighbors reported to the
newspaper Afrik.179
Kicked Out Across South America
Organized public resistance wrecked Veolia’s water priva-
tization vision for South America. Public opposition to
price increases and inadequate service forced the com-
pany out of deals in Argentina and Brazil,180 and threat-
ened to do the same in Guayaquil, Ecuador, and Tibitoc,
Colombia.181 As of 2010, according to World Bank data,
the company had only three “operational” privatization
contracts on the continent; all were in Colombia and two
involved fixed government payments to the company.182

Even when the company takes over water services, it avoids

investing in the system unless it can hike water prices to earn A Growing Movement for Public Water
a sizable return. Insufficient investment can impair water
A close examination of the world’s largest water corporation
quality and leave some households without service. It can be
reveals basic problems with water privatization. Consumers
deadly.
worldwide have seen their bills skyrocket and their service
worsen after Veolia took over their water and sewer systems.
Running Dry in Gabon In the face of strong public opposition, the company’s priva-
tization prospects are diminishing. It is struggling just to hold
In 2011, after an independent audit documented serious
ground.
failures with the concessionaire, the government of Gabon
ordered Veolia-run Societé d’Energie et d’Eau du Gabon
A growing movement is afoot to reclaim water services for
(SEEG) to improve its water and electricity systems to stop
the public. Many communities across France and the United
the blackouts and water shortages plaguing Libreville.172 The
States have ended deals with Veolia and resumed public
audit found that the company had failed to properly maintain
operation to save money and improve service. Elsewhere, the
the systems and had difficulty providing the required level
fight for public water continues. From Germany to Morocco,
of service.173 Some districts of the capital city had no water
communities are seeking to remove Veolia and restore public
service at all and others faced daily outages that lasted as
control of their water resources.
long as eight hours.174

In 1997, Veolia obtained a 20-year concession to provide

water, wastewater and electricity services to 1 million people
in Gabon.175 In 2011, it planned to sell half of its 51 percent
stake in SEEG to Électricité de France, the French-state electric
company headed by former Veolia CEO Proglio.176

10
 Food & Water Watch

Endnotes new Veolia head.” Reuters. September 25, 2009.

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11
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation
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maximum des delegations de service public.” April 8, 2009; Le Conseil
d’État et la Jurisdiction Administrative. Compagnie Generale des Eaux et
Commune d’Olivet. (No. 271737, 271782). Assemblée du contentieux.
April 3, 2009; Groupe d’Action Municipale d’Olivet. “Spécial EAU!
Olivet” Le Courrier de GAMO. No. 55. May 2009.
71 Research Institute for Social Development, United Nations. “Social
Policy, Regulation and Private Sector Water Supply: the case of France.”
 Food & Water Watch
September 12, 2006; Laime, Marc. “Delegations de service public: des
centaines de contrats remis en cause avant terme?” Eaux Glaces. April
10, 2009.
72 Groupe d’Action Municipale d’Olivet. “Pourquoi la gestion de l’eau sur
Olivet refait surface et fait a nouvou couler beaucoup d’encre…?” Le
Courrier de GAMO. No. 48. September 2004.
73 Le Conseil d’État et la Jurisdiction Administrative. Compagnie Generale
des Eaux et Commune d’Olivet. (No. 271737, 271782). Assemblée du
contentieux. April 3, 2009.
74 Baudry, M. Stephan. La Lettre du Cadre Territorial. “Arret Olivet: une
arme de negociation massive?” (No. 397). March 15, 2010; Le Conseil
d’État et la Jurisdiction Administrative. [Press release]. “Durée maxi-
mum des delegations de service public.” April 8, 2009.
75 Daniel, Marc and Isabelle Rey-Lefebvre. “Distribution d’eau : la concur-
rence s’éveille, les prix baissent.” Le Monde. February 14, 2010.
76 Baudry, M. Stephan. La Lettre du Cadre Territorial. “Arret Olivet: une
arme de negociation massive?” (No. 397). March 15, 2010; City of
Toulouse [Press Release]. “Audit de l’Eau: le choix de la raison.” January
28, 2010.
77 City of Toulouse [Press Release]. “Audit de l’Eau: le choix de la raison.”
January 28, 2010.
78 City of Toulouse [Press Release]. “Audit de l’Eau: le choix de la raison.”
January 28, 2010.
79 Eau Secours 31. [Press Release]. January 13, 2010.
80 Lamquin,Veronique and Michel de Muelenaere. “Aquiris: une victoire
pour Huytebroeck” Le Soir (Brussels). November 23, 2010; Bauwens,
Willy, College des Experts. “Station d’epuration de Bruxelles-Nord.”
(BXL-Nord-10-008-rev1). January 13, 2011 at 170 to 173; “Aucun argu-
ment d’Aquiris ne justifiait la fermeture de la station d’épuration.” La
Libre Belgique. January 13, 2011.
81 Corporate Europe Observatory. “Aquiris: Veolia’s lost bet in Brussels.”
February 22, 2010.
82 Lamquin,Veronique and Michel de Muelenaere. “Aquiris: une victoire
pour Huytebroeck” Le Soir (Brussels). November 23, 2010.
83 “Water utility referendum a ‘cold shower’ for Berlin.” The Local.
February 14, 2011.
84 Laime, Marc. “Le contrat secret de la privatisation de l’eau à Berlin
rendu public.” Mondediplo. November 4, 2010; Heiser, Sebastian.
“Die räuberische Wasser-Privatisierung.” Die Tageszeitung. October 30,
2010.
85 Veolia Water. [Brochure]. “Water References.” 2008 at 10.
86 Gateau, Nicolas. “Berlin: le scandale de l’eau.” Le Petit Journal.
November 15, 2010.
87 Gateau, Nicolas. “Berlin: le scandale de l’eau.” Le Petit Journal.
November 15, 2010; Socialist Equality Party. [Press release].
“Referendum on privatization of Berlin’s water supply.” February 14,
2011; “Water utility referendum a ‘cold shower’ for Berlin.” The Local.
February 14, 2011; Ball, Ralf Schön. “Senat will nicht gegen Wasser-
Volksentscheid klagen.” Der Tagesspiegel. February 15, 2011.
88 “Water utility referendum a ‘cold shower’ for Berlin.” The Local.
February 14, 2011.
89 “Berlin to start talks with RWE on BWB acquisition.” German Business
Digest. December 30, 2010; “New hurdle for RWE in Berlin.” Global
Water Intelligence, vol. 12, iss. 3. March 2011 at 27.
90 “French Veolia is not planning to sell stake in Berlin water utilities –
report.” German Business Digest. December 28, 2010; Cunnac, Michel.
“Vorläufig ruhen die Gespräche mit dem Senat.” Der Tagesspiegel.
December 28, 2010; “Veolia will Wasserbetriebe nicht hergeben.” Der
Tagesspiegel. December 27, 2010.
91 Godoy, Julio. “Europe: Privatised Services back in public hands.” Inter
Press Service News Agency. January 28, 2010.
92 Calculation on file with Food & Water Watch. World Bank and
PPIAF. PPI Project Database. (http://ppi.worldbank.org). Last update:
December 2010. Accessed February 10, 2011.
93 Veolia Environnement. “Q4 and full year 2010 Veolia Environnement
SA earnings conference call-final.” FD (Fair Disclosure) Wire. March 4,
2011 at 8.
94 Veolia Environnement. Presentation. “2010 Annual Results.” March 4,
2011 at 47.
95 Veolia Environnement. “Q4 and full year 2010 Veolia Environnement
SA earnings conference call-final.” FD (Fair Disclosure) Wire. March 4,
2011 at 18.
96 Veolia Environnement. Presentation. “2010 Annual Results.” March 4,
2011 at 45.
97 European Bank for Reconstruction and Development. [Press release].
“EBRD boosts stake in Veolia Environnement water venture.” December
15, 2009.
98 International Finance Corporation, World Bank Group. [Press release].
“IFC to invest in Veolia Voda for rehabilitation of water & wastewater
networks in Eastern Europe.” June 3, 2010.
99 Veolia Environnement. [Press release]. “Veolia Water acquires several
United Utiities activities in Europe.” June 14, 2010; “Veolia Water buys
several European activities of United Utilities for EUR 199m.” French
Business Digest. June 15, 2010.
100 Hall, David and Emanuele Lobina. Public Services International
Research Unit. “Water Companies in Europe 2010.” September 2010
at 5; Organisation for Economic Co-operation and Development.
Environment Directorate, Environment Policy Committtee, “Private
Sector Participation in Water Supply and Sanitation in Eastern Europe,
Caucasus and Central Asia: Status Paper.” Annual Meeting of the Task
for the Implementation of the Environmental Action Programme.
Almaty, Kazakhstan. October 14 to 15, 2010 at 26, 53, 77 and 78.
101 Gegea, Mihaela. “Apa Nova in cross-hair of authorities.” Nine O’Clock
(Bucharest). December 16, 2003; Benezic, Dollores. “Apa Nova
intra pe mana Autoritatii Nationale de Control.” Curierul Naţional.
November 17, 2003; Mediafax. “Apa Nova Bucuresti, in vizorul
Administratiei si Internelor.” Curierul Naţional. January 27, 2004;
Veolia Water. “Partner to major cities.” October 3, 2008 at 19.
102 Mediafax. “Videanu: ‘The contract with Apa Nova is harmful for the city
but I observe it.’” Nine O’Clock (Bucharest). April 1, 2007.
103 Affaire Butan et Dragomir c Roumanie. Final Decision. European Court
of Human Rights, Third division. (Application no. 40067/06). May
14, 2008; European Commission of Human Rights. [Press release].
“Butan and Dragomir v. Romania (no. 40067/06).” February 14, 2008;
Cicovschi, Aphrodite. “România, condamnată la CEDO din Cauza
ApaNova.” Curierul Naţional. February 20, 2008.
104 “Onţanu îi cere lui Oprescu să rezilieze contractul cu Apa Nova
Onţanu îi cere lui Oprescu să rezilieze contractul cu Apa Nova.”
Mediafax (Bucharest). March 9, 2009; Dimache, Roxana. “Oprescu
vrea renegocierea contractului cu Apa Nova.” Curierul Naţional. June
5, 2009.
105 Capatos, Monica Andrei. “Datorii stinse şi investiţii promise.” Jurnalul
National (Bucharest). December 15, 2009; “Apa Nova renunţă la
banii datoraţi de RADET.” Mediafax (Bucharest). November 3, 2009;
Dimache, Roxana. “Oprescu vrea renegocierea contractului cu Apa
Nova.” Curierul Naţional. June 5, 2009; “Primăria capitalei va renego-
cia contractual cu Apa Nova.” Curierul Naţional. November 3, 2009.
106 “Anger in Sofia over water price hike.” Sofia News Agency. February
1, 2011; “Sofia water utility to cut supplies to debtors.” Sofia News
Agency. January 17, 2011; “Sofia water utility strikes against debtors.”
Sofia News Agency. February 13, 2011; Sofiyska Voda. “Annual Report
and Financial Statements 2009.” September 17, 2010 at 2.
107 Amiel, Geraldine. “Interview: Veolia CEO looks to Europe for growth
potential.” Dow Jones Newswires. March 5, 2010.
108 Wee, Sui-Lee. “China to spend $301 billion on water projects.” Reuters.
January 20, 2011.
109 Calculation on file with Food & Water Watch. World Bank and
PPIAF. PPI Project Database. (http://ppi.worldbank.org). Last update:
December 2010. Accessed February 10, 2011.
110 Gasson, Christopher. “Frérot sees salvation in operations.” Global Water
Intelligence, vol. 11, iss. 7. July 2010 at 8.
111 Veolia Water. “Veolia Water linking cities to finance.” Presentation.
September 27, 2010 at 12 to15; Gadis, David. “Testimony” In the mat-
ter of the petition of the Department of Waterworks of the consolidated
city of Indianapolis, Indiana, for authority to increase its rates and
charges for water utility service…” State of Indiana, Indiana Utility
Regulatory Commission. September 30, 2009 at Gadis-5.
112 Veolia Environnement. Presentation. “2010 Annual Results.” March 4,
2011 at 45.
113 Gasson, Christopher. “Frérot sees salvation in operations.” Global Water
Intelligence, vol. 11, iss. 7. July 2010 at 8.
114 Veolia Environnement. U.S. Securities and Exchange Commission.
2009 Form 20-F. April 19, 2010 at 14; Veolia Environnement. “Credit
analysts.” Presentation. New York. March 30, 2010 at 75; Gasson,
Christopher. “Frérot sees salvation in operations.” Global Water
Intelligence, vol. 11, iss. 7. July 2010 at 8; Veolia Environnement. “Full
year 2009 Veolia Environnement SA earnings conference call – final.”
FD (Fair Disclosure) Wire. March 5, 2010 at at 11.
13
 Veolia Environnement: A Profile of the
World’s Largest Water Service Corporation
115 Veolia Environnement. Presentation. “2010 Annual Results.” March 4,
2011at 43 to 47; Veolia Environnement. “Q4 and full year 2010 Veolia
Environnement SA earnings conference call-final.” FD (Fair Disclosure)
Wire. March 4, 2011 at 7 to 8.
116 Veolia Environnement. [Press release]. “Strategic long-term partnership.”
April 16, 2010.
117 Gasson, Christopher. “Frérot sees salvation in operations.” Global Water
Intelligence, vol. 11, iss. 7. July 2010 at 8; Veolia Environnement. “Half
year 2010 Veolia Environnement SA earnings conference call – final.”
FD (Fair Disclosure) Wire. August 6, 2010 at 15; “Veolia Water’s Saudi
Arabian odyssey.” Global Water Intelligence, vol. 10, iss. 9. September
2009 at 16.
118 Veolia Water. [Press release]. “Veolia Water is awarded two new con-
tracts in the Sultanate of Oman.” January 12, 2011.
119 “Moroccans riot ahead of protests.” Al Jazeera. February 19, 2011;
Karam, Souhail. “Riots in Moroccan city over utility costs.” Reuters.
February 19, 2011; Ghanmi, Lamine. “Veolia Morocco unit buys part-
ners’ 49 pct stake.” Reuters. November 26, 2007.
120 “Morocco/Project: Vivendi group wins Tangiers concession.” Financial
Times Energy Newsletters- Global Private Power. March 12, 2001;
Ghanmi, Lamine. “Veolia Morocco unit buys partners’ 49 pct stake.”
Reuters. November 26, 2007; “Morocco: Joint venture contract award
for planned $700,000,000 water and electricity distribution opera-
tions.” Worldwide Projects-Report on Engineering Construct & Plant
Operations in the Developing World. April 1, 2001.
121 Attac Morocco et al., Délégation de service public et Démocratie.
[Press Release]. “Déclaration de presse sur la gestion déléguée des
services de l’eau, électricité, assainissement et transport public – cas de
Rabat.” January 19, 2011.
122 “Vivendi takes over Rabat.” Global Water Intelligence, vol. 3, iss. 11.
November 2002; “Debtors impact Veolia Maroc’s cashflow.” Global
Water Intelligence, vol. 11, iss. 2. February 2010 at 8.
123 “Debtors impact Veolia Maroc’s cashflow.” Global Water Intelligence,
vol. 11, iss. 2. February 2010 at 8.
124 Attac Maroc et al., Foundation France Libertés. “Remarques
sur l’expérience de la gestion déléguée à REDAL et STAREO.”
Correspondence to Oualalou, Fatallah. January 14, 2011; “Veolia, entre
attaque et contre-attaque.” Les Echos Quotidien. January 26, 2011;
Attac Morocco et al., Délégation de service public et Démocratie.
[Press Release]. “Déclaration de presse sur la gestion déléguée des
services de l’eau, électricité, assainissement et transport public – cas de
Rabat.” January 19, 2011.
125 Lion, Patrick. “Tugun desalination plant to be mothballed, execs face
axe in bid to cut water bills.” The Sunday Mail. December 5, 2010;
OConnor, Mike. “Gold Coast desalination plant a billion-dollar rusty
white elephant.” The Courier-Mail. June 28, 2010.
126 “Aussie plants go into hibernation.” Global Water Intelligence. Vol. 11,
iss. 12. December 2010.
127 Lappeman, Sue. “$32,000 a day for Tugun desal water we don’t need.”
Gold Coast News. March 9, 2010.
128 Johnstone, Craig. “Cheaper water denied to users as Tugun desalination
plant supply is prioritized.” Courier Mail. May 3, 2010.
129 Veolia Water. [Press release]. “Veolia Water selected for two major
projects to address drought in Australia.” December 5, 2006.
130 Bita, Natasha. “Water’s quick fix a long-term drain.” The Australian.
January 23, 2010; Moore, Tony. “Desal inquiry ‘still ongoing.’” Brisbane
Times. June 23, 2010.
131 Stolz, Greg. “Tanks still rusting at Tugun desalination plant.” Courier
Mail. April 27, 2010.
132 “United Water loses Adelaide water deal.” ABC News. February 10,
2011; “Suez Environnement makes waves down under.” Global Water
Intelligence, vol. 12., iss. 2. February 2011 at 37.
133 “SA Water wins $14m from United.” ABC News. February 21, 2011;
“Experts order a $13.8m water payback.” Adelaide Now. February 21,
2011.
134 Emmerson, Russell. “Jobs in peril after French firm United Water loses
SA Water contract.”Adelaide Now (Adelaide, Australia). June 25, 2010.
135 Owen, Michael and Gavin Lower. “State Sues Water Firm for Millions.”
The Australian. September 1, 2009.
136 “United Water loses Adelaide water deal.” ABC News. February 10,
2011; “Suez Environnement makes waves down under.” Global Water
Intelligence, vol. 12., iss. 2. February 2011 at 37.
137 “EPA investigates sewage spill.” ABC News. February 16, 2004.
138 “United Water plays down second sewage spill.” ABC News. November
14
1, 2004.
139 “Second sewage spill angers Minister.” ABC News. November 1, 2004.
140 Veolia Environnement. U.S. Securities and Exchange Commission.
2009 Form 20-F. April 19, 2010 at F-132; “PWF’s 14th annual water
outsourcing report.” Public Works Financing, vol. 247. March 2010 at 2
and 5; Veolia Water. “Proposal: Professional Services for the Transition
of the Ft. Monroe Facility Fort Monroe Authority.” Volume 1- Business &
Qualitfications Proposal. October 22, 2010 at 1-1.
141 “PWF’s 12th annual water outsourcing report.” Public Works Financing.
vol. 225. March 2008 at 1; Chertoff, Larry. “Contract ops reach-
ing maturing.” Global Water Intelligence, vol. 7, iss. 3. March 2006;
“Veolia plots a new US strategy.” Global Water Intelligence, vol. 5, iss.
7. July 2004 at 13; “Patience wins the day at Veolia.” Global Water
Intelligence, vol. 6, iss. 5. May 2005 at 10 to 12; “US private firms
shrink from weak deals.” Global Water Intelligence, vol. 4 iss. 8. August
2003 at 8.
142 “PWF’s 14th annual water outsourcing report.” Public Works Financing,
vol. 247. March 2010 at 5; “PWF’s 13th annual water outsourcing
report.” Public Works Financing, vol. 236. March 2009 at 3.
143 “PWF’s 14th annual water outsourcing report.” Public Works Financing,
vol. 247. March 2010 at 6 and 7.
144 “PWF’s 14th annual water outsourcing report.” Public Works Financing,
vol. 247. March 2010 at 7; “PWF’s 11th annual water outsourcing
report.” Public Works Financing, vol. 214. March 2007 at 5.
145 Village of Coxsackie v. Veolia Water North America-North East LLC and
US Filter Operating Services Inc. (1:07-CW-131). United States District
Court Northern District of New York. September 6, 2007 at 1 to 2.
146 Isaac, Jimmy. “Regulators fine Overton for violations.” News-Journal.
January 31, 2010.
147 Amiel, Geraldine. “Keeping our cities livable.” The Wall Street Journal.
January 31, 2011.
148 “PWF’s 13th annual water outsourcing report.” Public Works Financing,
vol. 236. March 2009 at 4.
149 Fix our Sanitary District – Yes on F. Recipient Committee Campaign
Statement. (California Form 260). Marin County Elections. August 3,
2010 at 4; Marin County Registrar of Voters. Direct Primary Election
June 8, 2010 Official Final Statement of Votes Cast. June 28, 2010;
Jason, Will. “In Novato, new $25.6M sanitary contract takes effect.”
Contra Costa Times. August 6, 2010.
150 USFilter. [Press release]. “City of Indianapolis selects USFilter to man-
age waterworks system.” March 18, 2002.
151 Olson, Scott. “Employee benefit assessments paint different pictures.”
Indianapolis Business Journal. August 4, 2003; Tully, Matthew. “Water
workers sue over benefits cuts.” Indianapolis Star. August 30, 2002.
152 Veolia Environnement. U.S. Securities and Exchange Commission. 2009
Form 20-F. April 19, 2010 at 172; Jason Bond, et al. v. Veolia Water
North America Operating Service, LLC, et al. Marion County Superior
Court. (49D07-0804-CC-018081). January 23, 2009 at 7 to 11; The
City of Indianapolis and the Department of Waterworks of the City of
Indianapolis. “Sellers Disclosure Schedules.” August 11, 2010 at 45;
Murray, Jon. “State begins informal probe of complaints by water us-
ers.” Indianapolis Star. April 27, 2008.
153 O’Shaugnessy, Brendan. “Water company awash in controversy.”
Indianapolis Star. October 7, 2005.
154 O’Shaugnessy, Brendan. “Water company awash in controversy.”
Indianapolis Star. October 7, 2005; O’Malley, Chris. “Veolia conces-
sions worry regulators.” The Indianapolis Business Journal. May 8,
2010.
155 O’Malley, Chris. “Veolia concessions worry regulators.” The
Indianapolis Business Journal. May 8, 2010.
156 Indiana Office of Utility Consumer Counselor. “OCC’s Proposed Order.”
Indiana Utility Regulatory Commission. (Cause No. 43645). June 22,
2010 at 22.
157 Murray, Jon. “Indianapolis water bills will be going up 26 percent.”
Indianapolis Star. February 2, 2011.
158 Cotterill, Chris W. City of Indianapolis. “Memorandum: Agreement to
transfer the water and wastewater systems to Citizens Energy Group.”
June 25, 2010 at 1 and 4; City of Indianapolis. [Press release]. “Council
votes to support utility transfer.” July 26, 2010.
159 Murray, Jon. “Citizens Energy to replace Veolia.” Indianapolis Star.
October 29, 2010.
160 City Council of Petaluma. “Regular city council/PCDC meeting.”
November 19, 2007 at 4; City Council of Petaluma. Water Resources
& Conservation. “Agenda Title: Presentation, Discussion and Possible
 Food & Water Watch
Action Regarding Plan for Operation and Maintenance of the Ellis
Creek Water Recycling Facility.” November 19, 2007 at 1, 15 and 23.
161 Welch, Laurie. “Burley questions Veolia work on plant.” Times-News
(ID). December 3, 2009.
162 Speer, John. “Tama council ‘firm’: no severance pay.” The Tama News-
Herald. February 25, 2011.
163 Veolia Water. “Right to water – from concept to reality.” Human Rights
Council, Independent Expert on the issue of human rights obligations
related to access to safe drinking water and sanitation. March 2010 at
1.
164 Access to improved drinking water services based on latest survey data
available from 1995 to 2008. United Nations, United Nations Statistics
Division, Department of Economic and Social Affairs. “7.8 Proportion
of population using an improved drinking water source.” Millennium
Development Goals Indicators. June 23, 2010; Veolia Water. “Business
overview 2009.” May 14, 2010 at 14 to 15.
165 “The flood dries up.” The Economist. August 28, 2004; Denny,
Charlotte. “H20: Comment: Private droughts: The poor are not profit-
able and foreign forms are pulling the plug.” The Guardian. August 23,
2003.
166 Veolia Water. “Right to water – from concept to reality.” Human Rights
Council, Independent Expert on the issue of human rights obligations
related to access to safe drinking water and sanitation. March 2010 at
2.
167 Veolia Environnement. “Credit analysts.” Presentation. New York. March
30, 2010 at 75.
168 For example, see Lobina, Emanuele and David Hall. Public Services
International Research Unit. “Problems with private water concessions:
a review of experience.” June 2003 at 29 to 31.
169 Amiel, Geraldine. “Interview: Veolia CEO looks to Europe for growth
potential.” Dow Jones Newswires. March 5, 2010.
170 Calculation on file with Food & Water Watch. World Bank and
PPIAF. PPI Project Database. (http://ppi.worldbank.org). Last update:
December 2010. Accessed February 10, 2011.
171 Veolia Environnement. “Full year 2009 Veolia Environnement SA earn-
ings conference call – final.” FD (Fair Disclosure) Wire. March 5, 2010
at 16.
172 “Le Gabon exige de Véolia un plan de renouvellement des équipements
d’eau et d’électricité.” Xinhua. February 17, 2011.
173 Kombila, Yorick. “Le Conseil des Ministre se saisit de l’audit de la SEEG
et apporte des additifs.” Gabonews. February 16, 2011.
174 Kwatsi, Linel. “Gabon warns Veolia unit on water contract.” Reuters.
December 30, 2009.
175 Global Water Operators’ Partnership Alliance. “Societe d’Energie et
d’Eau du Gabon.” January 27, 2011; Veolia Water. “Our know-how in
Sub-Suharan Africa.” December 17, 2007.
176 Whitehouse, David. “EDF Gabon Stake Purchase Shows Veolia
Cooperation Increasing, Tribune Says.” Bloomberg. January 17, 2011.
177 Kwatsi, Linel. “Gabon warns Veolia unit on water contract.” Reuters.
December 30, 2009.
178 “Gabon : La SEEG sur la balance du gouvernement?” Gaboneco.
January 3, 2011.
179 Batassi, Pierre Eric Mbog. “Libreville : une famille de 5 personnes périe
dans un incendie.” Afrik.com. January 18, 2011.
180 “Catamarca rescinds Aguas del Valle contract.” Business News
Americas. December 23, 2004; Izaguirre, Ada Karina and Alexander
Nicholas Jett. The World Bank Group. “Investment commitments remain
stable in Latin America while the number of new projects declines.”
(PPI data update note 31). December 2009 at 5; Tagliabue, John. “As
multinationals run the taps, anger rises over water for profit.” The New
York Times. August 26, 2002; “Courts rule in Sanepar control case.”
Global Water Intelligence, vol. 8 iss. 11. November 2007; Veolia
Environnement U.S. Securities and Exchange Commission. 2008 Form
20-F. April 16, 2009 at F-41 to F-42; “Brazil: Pulling the plug.” EIU
Business Latin America. The Economist. February 24, 2003; Lobina,
Emanuele and David Hall. Public Services International Research Unit.
“Problems with private water concessions: a review of experience.”
June 2003 at 14; Lobina, Emanuele and David Hall. Public Services
International Research Unit. “Water privatisation and restructuring in
Latin America, 2007.” September 2007 at 4, 5, 8, 9, 22 to 25, 29 to 31.
181 Izaguirre, Ada Karina and Alexander Nicholas Jett. The World Bank
Group. “Investment commitments in Latin America and the Caribbean
increased in 2007.” (PPI data update note 16). December 2008 at 4.
“Veolia and FCC find trouble in Tibitoc.” Global Water Intelligence, vol.
9, iss. 2. February 2008; Izaguirre, Ada Karina and Edouard Perard. The
World Bank Group. “Private activity in water and sewerage declines
for second consecutive year.” (PPI data update note 37). June 2010 at
3 to 4; Hall, David and Emanuele Lobina. Public Services International
Research Unit. “Water Companies in Europe 2010.” September 2010 at
17; Ortiz, Gonzalo. “Ecuador: Native groups in showdown over water
bill.” Inter Press Service. April 29, 2010.
182 Calculation on file with Food & Water Watch. World Bank and
PPIAF. PPI Project Database. (http://ppi.worldbank.org). Last update:
December 2010. Accessed February 10, 2011.
15
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