C u r r e n t  P r e s s, 2000-02-11

Vivendi Water and Rand Water announce a major partnership to bid for the operation of Johannesburg's Water Utility

Vivendi Water and Rand Water today announced the formation of a partnership to bid for the Greater Johannesburg Metropolitan Council (GJMC) Water and Sanitation Utility Management Contract.
This major private-public partnership will, if awarded the tender, ensure effective management of water and wastewater services in Greater Johannesburg. The five-year contract to manage the utility calls for performance-based outcomes in the operation and maintenance of the water, sewer and wastewater treatment systems in terms of the iGoli 2002 plan. The plan is developed to tackle the challenges of finance, institutional arrangements and service delivery in the Greater Johannesburg area.

Said Rand Water Chief Executive Vincent Bath: "We are moving into new areas of business and we are very pleased to be able to enter into this venture with a partner of the stature of Vivendi Water. Both our companies are leaders in the industry in their various ways and we believe that there is a strong case for Rand Water to assist in providing these services. We share a philosophy that exceptional performance is best accomplished through local focus, world-class solutions, and cost-effective operations. This is also an opportunity to extend and deepen our long-standing partnership with the Greater Johannesburg Metropolitan Council."

Senior Vice-President responsible for Africa and Middle East Robert Peirce' quote for Vivendi Water: "We are pleased to join forces with Rand Water, a leading and respected player in the South African market, for this very important Project.

The skills of our two Companies are very complementary, with Vivendi Water's extensive international experience in public private partnerships, notably for large retail water operations, fitting very well with Rand Water's local expertise and track record.

We are convinced this combination will enable the Group to positively respond to the expectations of the Greater Johannesburg Metropolitan Council invitation to bidders.

Vivendi Water sees an interesting future in private management of water projects in South Africa, is prepared to invest in the country's future, and is pleased to be participating in the first major tender in such good company".

Rand Water is the bulk water supplier to Gauteng and surrounding areas and supplies drinking water to over 10 million people in its 18 000-km2 area of supply.

The Water Services Act of 1997, has enabled Rand Water to expand its activities into other water related services. In pursuance of this, Rand Water has, for the past four years, managed the retail water supply in the Mabopane/Winterveld area, northwest of Pretoria, serving a population of 500 000. The agreement is, however, Rand Water's first formal strategic alliance with an international company to jointly bid for a contract to provide water services to local government.

Vivendi Water consolidates all the water activities of the Vivendi Group, following the recent merger of Générale des Eaux and USFilter. Vivendi Water is the global leader of water services and treatment systems serving all markets segments - municipalities, industries, commerce and individual consumers.

Vivendi Water serves over 100 million customers in over 100 countries. With estimated revenues of 12 billion € euros for 1999, Vivendi Water employs over 70,000 people.