Drinking water distribution service in France receives new contract

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Paris, Jan. 17, 2014 -- Veolia Water was recently awarded a new contract from Greater Lyon, one of the major drinking water utilities serving France, for the production and distribution of drinking water in 54 municipalities for a period of eight years.

Due to be executed on Feb. 3, 2015, the contract represents cumulative revenues of €660 million (US $893 million) and an investment of €55 million (US $74 million). The Greater Lyon water service will incorporate an integrated management center capable of providing complete water traceability and fully transparent operation.

Greater Lyon has the second largest drinking water service in France in terms of the population connected: 1.3 million people across 54 municipalities. This is a new contract corresponding to a new geographic area, as the service was previously provided by three operators, including Veolia, which managed 33 municipalities.

Further, Veolia will implement the ECONO project under which it is planned in particular to install 5,500 leak location sensors for the continuous surveillance of 2,000 kilometers of the most sensitive parts of the network. Added to this, 500 mobile sensors will be used for an active leak detection program along an additional 800 kilometers of the network. This is a challenge given that the network yield targets will be 85 precent by the end of 2016 and 87 percent by 2018.

With the installation of the Téléo smart network, the 400,000 Greater Lyon customers will be able to check their daily consumption via the Internet, receive notifications in the event of abnormal consumption via their preferred method (text, email, etc.), and be invoiced for the actual volume of water consumed. This new remote meter reading service will also be used for real-time location of leaks and monitoring water quality throughout this drinking water network's 4,000 kilometers.

About Veolia Environnement

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is a reference in environmental solutions. With 220,000 employees, the company has operations all around the world and provides tailored solutions to meet the needs of municipal and industrial customers in three complementary segments: water management, waste management and energy management. For more information, visit www.veolia.com.

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