Veolia Water to manage Milwaukee regional wastewater system

• 10-year, $400 million contract launches largest U.S. wastewater partnership

MILWAUKEE, WI, Dec. 4, 2007 -- The Milwaukee Metropolitan Sewerage District (MMSD) has selected Veolia Water North America -- Central LLC (Veolia Water) to manage a regional wastewater system serving the greater Milwaukee area under a 10-year contract valued at approximately $400 million.

Approved today by MMSD commissioners, the public-private partnership represents the nation's largest wastewater contract and is expected to save approximately $35 million over the contract term compared to MMSD's estimate to manage the system through public operations. Veolia Water's proposal includes comprehensive programs to enhance operations and maintenance of the system. MMSD officials considered multiple factors in the competitive procurement including technical approaches, experience, corporate resources, transition plans, employee relations, community involvement and activities to bolster Small/Women/Minority Business Enterprise activity.

"We are especially proud to be selected by MMSD, which has a rich history of leadership and innovation in many areas, ranging from biosolids management to the introduction of deep tunnels for managing wastewater during wet-weather events," said Joe Burgess, president and CEO of Veolia Water North America. "MMSD is an ideal partner in terms of sharing common commitments to technical excellence, continual operational improvement and environmental compliance. Our team worked diligently to win this project and looks forward to implementing advanced practices and new technologies that improve system operations and performance."

Veolia Water plans to introduce asset management programs based on the EPA's Asset Management Process, collaborative process control and work plans aimed at controlling potential wet-weather overflows, and enhanced odor monitoring and control technologies.

MMSD is a state-chartered, governmental agency providing wastewater services for 28 municipalities with a population of 1.1 million. As one of the nation's largest and most sophisticated wastewater systems, MMSD operations include a 411-square-mile service area with a 3,000-mile system of collection sewers and a 310-mile system of interceptor and main sewers, conveying wastewater to two treatment facilities that typically treat more than 200 million gallons of wastewater each day, with a combined peak capacity of 630 million gallons. The contract also includes operation of a 26.5-mile long deep tunnel system to help control wet-weather overflows, and production management of Milorganite®, the district's nationally branded and marketed biosolids fertilizer product created at MMSD's Jones Island wastewater facility.

"Throughout the procurement process, our team had the opportunity to interface with MMSD personnel and staff at various facilities to develop a real appreciation of the system and its complexities and challenges," said John Wood, president, Veolia Water North America -- Central, LLC. "The district and wastewater system employees have built an industry reputation for their diligence, and we're anxious to build upon their many accomplishments to date while taking the system to the next level."

The project further cements Veolia Water North America's industry leadership, which includes a 37 percent share of the U.S. municipal and industrial operations market according to an annual survey by Public Works Financing. The company now holds industry-leading partnerships as operator of the nation's largest drinking water partnership (Indianapolis), largest design-build-operate project (Tampa Bay Water's flagship surface water treatment facility), and largest wastewater partnership (Milwaukee).

Veolia Water plans to develop a Milwaukee-based research and development program that will be announced at a later date.

Transition activities will commence immediately; Veolia Water assumes operations management responsibility on March 1, 2008.

As a regional government agency providing wastewater treatment and flood management services for 28 communities, the Milwaukee Metropolitan Sewerage District serves 1.1 million people in a 420 square-mile service area.

Veolia Water North America-Central LLC is a wholly owned subsidiary of Veolia Water North America, the leading provider of comprehensive water and wastewater services to municipal and industrial customers, providing services to more than 14 million people in approximately 600 communities.

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