Veolia Water
Veolia Water, is the water division of the French company Veolia Environnement and the world's largest supplier of water services.
In 2009, the group posted revenues of €12.56 billion. Of this, 72.9% of turnover comes from Europe; 7.4% from the Americas, 8.5% from Africa, Middle East and India, and 11.2% from the Asia-Pacific region.
History
The Compagnie Générale des Eaux was created in 1853. In 1889, its first research laboratory was established at 52, rue d’Anjou in Paris, France. Veolia Water’s headquarters are still located at this site.1918 saw the creation of the SADE, specialising in water networks and the delivery of drinking water. In 1953, construction began on a CGE water treatment facility at Clay Lane, near London; by 2001, it was the world’s largest ultrafiltration plant, supplying water to 750,000 people in the city.
Veolia Water’s humanitarian crisis response team, Waterforce, was created in 1998, prompted by Hurricane Mitch in Nicaragua and the flooding of the Yangtze River in China.
In 1980, CGE expanded into other businesses such as transport and energy services by acquiring other companies. The original CGE water industry remained as the water division of CGE. In 1998, CGE was renamed Vivendi, and in 1999, the environmental divisions of CGE was consolidated under Vivendi Environnement, with the water division renamed Vivendi Water in 1999. In 2003, Vivendi Environnement was renamed Veolia Environnement. Two years later in 2005, Veolia Environnement united its four global divisions under the Veolia brand. Vivendi Water thus was renamed Veolia Water.
In 2002, Vivendi Water expanded its municipal water services in 2002 to major cities such as Indianapolis, Bucharest, Berlin and Shanghai.
The UK water supply businesses branded as Veolia Water were sold by Veolia Environnement for £1.2 billion on 28 June 2012 to Rift Acquisitions, an entity established by Morgan Stanley and M&G Investments. Veolia Environnement is using the proceeds of the disposal to reduce its debt, as part of a 5bn-euro debt-reduction programme announced in December 2011 and will retain a 10% stake in the new business Affinity Water for at least five years. Affinity Water began operations on 1 October 2012.
Activities
Veolia Water's activities can be grouped into two main areas: providing clean drinking water, and collecting and treating waste water/sewerage water.Drinking water
Veolia Water sources, treats, stores and transports water from the environment for distribution to populations. Veolia Water supplies nearly 95 million people around the world with drinking water.Waste water treatment
Veolia Water collects and then treats water in line with national and international regulations. Different treatments are provided depending on the level of pollution. Afterwards, the water re-enters the water cycle. Veolia Water delivers water treatment services to 68 million people around the world and, as of 2009, it managed 3,229 municipal water treatment plants.In October 2010, Veolia Water was contracted to rebuild a waste water treatment plant in Lille in a project that will ultimately have the capacity to treat waste water from 620,000 inhabitants in the region. The company also secured the management of the Grand Prado treatment facility on the island of Reunion.
Other services
Veolia Water produces water for industrial processes, and offers treatment, heating, cooling and cleaning applications for industry. In August 2010, Veolia Water was awarded the wastewater treatment contract for the Petrobras Papa Terra P63 offshore oil production project, located in the Campos Basin, off the coast of Brazil.Veolia has built 15% of the world’s desalination capacity. Some estimates suggest that the global water desalination market will double in the period 2010-2016.
Veolia Water offers two main technologies: reverse osmosis and thermal desalination. In reverse osmosis, water is passed through membranes under pressure; the membrane allows water to circulate, but captures the salts. During thermal desalination, water is vaporized in distillation chambers to separate out the salts it contains.
Veolia Water also operates in alternative water recycling markets. This involves water that is clean, but not purified for human consumption, and is suitable for irrigation, industrial uses, and the injection and storage of water into underground aquifers after additional treatment.
Veolia Water works to replenish subterranean aquifers, which are being exhausted through over-exploitation in some areas. Replenishment can be achieved with treated water of various kinds: surface water, rainwater and treated waste water.
Sustainable development
Veolia Water works on reducing the environmental impact of water use through a number of strategies.- Saving water: reducing leaks in the system and managing consumption through systems such as water meters.
- Protecting water resources: treating wastewater and preventing pollution, for example by avoiding discharge into aquifers.
- Limiting the environmental impact of energy use: optimizing facilities, exploring water as a source of renewable energy. Veolia Water Solutions and Technologies has begun a carbon initiative to analyze the sources of customers' emissions and offer lower-carbon water treatment solutions.
- Developing alternative resources: recycling treated water, recharging aquifers, desalinating seawater.
Major subsidiaries
Veolia Water’s subsidiaries include:- SADE, which to builds and maintains water mains and water networks for delivering and distributing drinking water, and processing waste water.
- Veolia Water Solutions and Technologies provides services to both local authorities and private industry, aiming to help them to reduce their environmental impact. In 2007 a Joint venture between Doshion Limited and Veolia Water Solutions and Technologies was signed, thus gave formation to Doshion Veolia Water Solutions. This turned out to be a bad venture which did not bring any benefits to Veolia's investors and the company's services.
- Two engineering advisory agencies: Seureca and Setude. These agencies specialize in water management, water treatment and the environment.
- Krüger A/S, Denmark
Controversies
Terrorism
During the Popes 2010 visit to the United Kingdom, five fake employees of Veolia were arrested at gun point. They were arrested at their homes and at one of Veolias offices. They were said to have created a plan to murder the Pope.Contract violations
These examples from the United States are compiled from the 2009 report by Food & Water Watch, a 2010 Food & Water Watch Factsheet titled A Closer Look: Veolia Environnement, a 2011 report by Food and Water Watch titled Veolia Environnement: A Profile of the World's Largest Water Service Corporation, and a report prepared by Novato Friends of Locally Operated Wastewater titled Veolia and the Environment: A Bad Fit for Novato.- California Burlingame, CA Veolia settled out of court when sued under the Clean Water Act for dumping more than 10 million gallons of wastewater and untreated sewage over a 5-year period into the San Francisco Bay after creating an inadequate improvement project. Richmond, CA Veolia and Richmond settled out of court when sued for dumping more than 17 million gallons of sewage into tributaries after initiating a capital improvement project. Voters approved a $20 million bond to pay for sewer repairs, which Richmond used to privatize its sewers over three years and then sign a 20-year, $70 million contract with Veolia. Taxpayers had to shell out $500,000 annually to compensate for related property damage. In 2008, the plant had 22 spills of more than 2 million gallons of sewage.
- Connecticut Bridgeport, CN Mayor convicted on 16 counts including taking kickbacks, bribes and extortion, along with 8 other defendants over a PSG contract proposal. Danbury, CN In a short-sighted attempt to balance its municipal budget, the city leased its sewers in exchange for a $10 million upfront payment, at $22 million overall expense.
- Delaware Wilmington, DE Failures to upgrade and repair, have resulted in years of sewage spills; environmental violations; state fines; horrendously foul odors; sewage overflow outlets which annually send over a billion gallons of contaminated wastewater into area waterways; and contract disputes over a 55% rate hike.
- Idaho Burley, ID In 2009, after cancelling its wastewater contract with Veolia, the city had to make thousands of dollars in repairs to the treatment plant because of the company's neglect and poor maintenance.
- Indiana Indianapolis, IN Veolia has been sued for breaking state contract law, and for overcharging 250,000 residents. Non-union employees have had pension, health care and benefits cut $50 million over the 20-year contract. With the second worst drinking water in the country, a grand jury has subpoenaed four Veolia employees for allegations of falsifying water reports amid accusations by city and county officials that Veolia was skimping on staffing, water testing, maintenance and chemicals.
- Iowa Tama, IA In 2011, the city sought to end a 20-year contract with Veolia because it believed the city could save money with a public operation.
- Louisiana New Orleans, LA Consideration of a bid containing uncertainties, inadequacies, and omissions cost the city $5 million. Failure to take action on a known equipment problem resulted in an electrical fire. Raw sewage backed up into the East Bank Sewage Treatment Plant and was diverted into the Mississippi River for two hours. An executive was convicted of bribery in seeking wastewater contract extension and fined $3 million.
- Massachusetts Lee, MA Lee rejected a bid that seemed to be a scheme to turn the city's wastewater treatment facilities into a regional waste plant/Veolia profit stream. Lynn, MA The city was forced to end a weak contract that left it liable for expenses due to sewer overflows and flooding as a result of poor design or workmanship of system upgrades and an expired letter of credit. The city lost $22 million. Rockland, MA A forensic audit led to a contract termination amid embezzlement charges involving a sewer department official and a local company executive, charged with embezzling more than US$300,000.
- Ohio West Carrollton, OH An explosion at Veolia Environmental Service's plant injured two workers, damaged over a dozen homes within a mile radius from the blast, caused $50 million in damage to the plant itself.
- Pennsylvania Meadville, PA The Department of Environmental Protection fined Veolia ES Solid Waste of Pennsylvania Inc. $160,278 for violations related to vehicle licensing and failing to abide by the terms of its permit and more than $11,200 for residual and municipal waste violations amid complaints a Veolia truck driver draining an estimated 100 gallons of dilute coolant and rust preventative into a storm drain leading to the Driftwood Branch of Sinnemahoning Creek. Cameron and Centre Counties, PA Veolia was also fined by the Pennsylvania Department of Environmental Protection for municipal and residual waste violations in Cameron and Centre Counties.
- Rhode Island Woonsocket, RI Years of serious sewage spills, violations and fines followed kept the city's plant out of Clean Water Act compliance including seven informal enforcement actions and five formal actions and the plant's manager had to attend a remedial training program, sponsored by the state.
- Texas Angleton, TX Failure to maintain adequate staffing levels, submit capital project reports, and charging expenses properly led to a contract termination a lawsuit for breached contract. Houston, TX A federal investigation into the financial transactions of high-profile consultants hired to lobby city officials in unsuccessful bids. After a legal battle with Veolia's competitor, the city expects to save 17%, or $2 million in public operation.
In the media