With the City of Ajman, Veolia Water wins the first ever contract for wastewater service operation to be awarded to a private operator in a Gulf country.

Paris, February 9, 2006 - The Emirate of Ajman has awarded Veolia Water, the Water Division of Veolia Environnement, the contract to manage the wastewater services of its capital, Ajman (population of 235,000), via the Moalajah operating company. Moalajah is owned two-thirds by Veolia
Water and one-third by Besix, its Belgian partner. The 27-year contract will generate cumulative revenue of approximately €280 million over the period.

Veolia Water also as a 20% stake in the concession company, alongside Besix (50%), Black & Veatch (10%) and the Government of Ajman (20%). The concession contract covers construction of the wastewater treatment plant with a maximum capacity of 90,000 cubic meters per day, installation of the 230-km collection system and service lines to homes.

The operating contract includes overseeing the construction work up until delivery by the concession company, in phases between 2007 and 2009. The contract also covers billing. The wastewater collection and treatment services for the Emirate of Ajman will be the first in the Gulf region to be billed directly to customers. Once the infrastructure is in place, it will be operated and maintained by Moalajah.

 This operating contract for wastewater services is the first ever to be awarded to a private operator. It is a clear sign of the opening up of the Gulf countries to public-private partnerships for water services, which have traditionally been managed by public authorities. The choice of our company as partner for the concession and operating companies has been made not only on the basis of our international reputation but also because of our quality of service and expertise adapted specifically to the Ajman's needs.

commented Antoine Frérot, Chief Executive Officer of Veolia Water.