Veolia Water wins three new international contracts valued at nearly $100 million

PARIS, France, Jan. 31, 2007-- After having recently won the build, finance and operating contract for a reverse osmosis seawater desalination plant in Oman, and the 30-year concession contract in Lanzhou (China), Veolia Water today announces the signature of three new significant contracts in Ireland, Singapore and the Island of Guam (Pacific).

Limerick, Ireland. The municipal authority of Limerick in southwest Ireland awarded Veolia Water, in partnership with Ascon, a civil engineering subsidiary of the Netherlands' Royal BAM Group, a design, build and operate (DBO) contract for upgrading the Clareville water production plant. The plant supplies water to 90,000 people in Limerick and the surrounding area.

The operation part of the contract is for a period of 20 years and will represent total revenue of about EUR60 million [US$78.19 million] for Veolia Water. The design and construction components will be carried out by Veolia Water Solutions & Technologies and Ascon for a total amount of EUR23.7 million [US$30.88 million], of which EUR11.5 million [US$15.99 million] for Veolia Water Solutions & Technologies. The work, which started in early January 2007, will enable production to increase from the current 51,000 cubic meters a day to 87,000 cubic meters a day on delivery of the plant in mid-2010.

The technology to be used is Actiflo^®, a very high-speed clarification process developed by Veolia Water. In addition, a special process will be used to treat the water production sludge, opening up new recycling possibilities.

Kranji, Singapore. The Public Utilities Board (PUB) of Singapore demonstrated its continuing confidence in Veolia Water Solutions & Technologies by signing a new contract for a second extension to the Kranji NEWater plant, which produces recycled water. This contract is worth EUR8.5 million [US$11.08 million], and is the fourth awarded to Veolia Water Solutions & Technologies by PUB.

In January 2002, PUB awarded Veolia Water, through its subsidiary Veolia Water Solutions & Technologies, the construction of a plant with the capacity to produce 40,000 cubic meters of recycled water a day from secondary effluent. Following a first plant extension in 2005, the new extension will increase production capacity to 82,000 cubic meters a day on completion of the contract, scheduled for the third quarter of 2007.

The ultra pure water, supplied to local industry, undergoes microfiltration, reverse osmosis and UV treatment.

Island of Guam, Pacific. Veolia Water signed a contract for managing the island's wastewater service. In a spirit of partnership with Guam Waterworks Authority, Veolia Water will set up a system of sustainable development for the island, which is both a major U.S. naval base and a very popular destination for Japanese vacationers.

The contract represents consolidated revenue of EUR6.1 million [US$7.95 million] over three years and includes an option for a further three-year extension. It covers the management of seven wastewater treatment plants with a total capacity of 45,000 cubic meters a day for a population of 120,000. Guam Waterworks Authority will benefit from Veolia Water's technical expertise and R&D network, and have access to its training and environmental management centers.

This contract further strengthens Veolia Water's presence in the western Pacific Basin.

"Through these three new contracts in Europe and Asia-Pacific, Veolia is once again confirming its ability to provide solutions that are tailored to local conditions in terms of infrastructure and network management, as well as the design and implementation of drinking or recycled water production," said Antoine Frerot, chief executive officer of Veolia Water.

Veolia Water (www.veoliawater.com), 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. Veolia Water serves 108 million people worldwide. With 70,700 employees, its 2006 revenues amounted to EUR10.08 billion [US$13.16 billion].

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Also see:
-- "Veolia Water wins 21st contract in China, estimated at US$2.07 billion"
-- "Veolia Water wins contract for RO seawater desalination plant in Oman"
-- "Veolia Water picked for two major projects to address Australian drought"

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