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
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.
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.