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IFC to invest in Veolia Voda for rehabilitation of Water & Wastewater Networks in Eastern Europe


In Washington D.C.:
Zibu Sibanda
Phone:  (202) 4730605
E-mail: zsibanda@ifc.org

In Moscow:
Nezhdana Bukova
Phone: +7 (495) 411 7555, ext 2026
E-mail: nbukova@ifc.org


Washington D.C., June 3, 2010—IFC, a member of the World Bank Group, will help one of the water sector’s strongest investors, Veolia Eau, rehabilitate and upgrade water and wastewater networks in Eastern Europe.

IFC will provide an equity investment of up to €100 million via a new share issue in Veolia Voda, Veolia Water’s Eastern European arm.  The capital will be used to support the expansion of Veolia Voda’s operations into new markets in Central and Eastern Europe, including Russia, Turkey, Ukraine, and the some of the Balkans.  Veolia Voda currently provides drinking water and wastewater treatment services to over 10 million people in Central Europe.  

Veolia Voda is the first, large-scale, direct involvement in the water sectors in Eastern European countries by an international water industry investor.  It represents a significant step toward the modernization and upgrading that already is underway in the region’s other infrastructure sectors, including power generation and transportation.

Antoine Frérot, Chief Executive Officer of Veolia Environnement, said “We are very pleased to welcome IFC as shareholder in Veolia Voda, alongside the European Bank for Reconstruction and Development and Veolia Water. IFC’s support will enhance Veolia Voda’s development in the region and will contribute not only to providing communities with efficient water and wastewater services, but also to the protection of natural water resources which is of major importance to this region.”

Rashad Kaldany, IFC Vice President for Asia, Eastern Europe, Middle East and North Africa said, “Veolia’s business model is very flexible, allowing the company to improve operations without owning the assets of water sector networks in several Eastern and Central European countries.  In addition to the benefits of a more efficient water supply, in supporting Veolia Voda, IFC hopes to stimulate financing for other essential infrastructure in the region using similar models.”

The provision of more efficient water and wastewater services is a corporate priority for IFC.  In supporting Veolia Voda, IFC also expects to promote better regulatory frameworks and contractual arrangements, corporate governance standards, and the environmental and social policies needed to facilitate future flows of equity and debt into the sector.

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.

About Veolia Voda
Veolia Voda operates water and sanitation infrastructure owned by municipalities or associations of municipalities in the Czech Republic, Slovakia, Hungary, and Poland. Veolia Voda is 83 percent owned by Véolia Eau-Compagnie Générale des Eaux, or CGE, the world’s largest water services company. For more information, visit www.veoliavoda.cz.

About Veolia Water
Veolia Water, 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. With 95,789 employees in 66 countries, Veolia Water provides water service to 78 million people and wastewater service to 53 million. Its 2009 revenue amounted to €12.5 billion.