Lyonnaise des Eaux, the water division of Suez Lyonnaise des Eaux Group today announced it has been selected for the final negotiation of a contract for water and wastewater management in Italy following an international call for tender. The contract is aimed at the association of 37 communes surrounding the town of Arezzo (Toscany) with a population of 350,000.

The 25-year contract represents an annual turnover of 23 million euros (150 million FF).

The selected consortium includes Lyonnaise des Eaux (51%), the Genoa city water authority (36%), two Italian banks including Banqua Populare del Etruria and Monte dei Paschi (4% together) and other local partners (9%). The final phase of the contract will be reached following talks to create a mixed economy joint-venture between the association of communes and the consortium lead by Lyonnaise des Eaux.

Gérard Mestrallet, CEO and President of the Executive Board of Suez Lyonnaise des Eaux, comments: "This is the first international call for tender carried out in Italy following the Galli law (1994) modernising the water and wastewater services in the country. The law modifies dramatically the water marketplace in Italy by creating regional units to delegate water management to a private or public partner."

Suez Lyonnaise des Eaux Group with its water division Lyonnaise des Eaux, n°1 internationally in water management, supplies drinking water to 77 million people and wastewater services to 52 million people.