Under the terms of the agreement Lyonnaise des Eaux will acquire a 90% stake in the water company 'Manaus Saneamento' with current revenue of 40 million USD per annum (42 million euros). Simultaneously, a 30-year concession contract will be signed with the municipality.

Lyonnaise se des Eaux will acquire Manaus Saneamento for 111 million euros. An investment programme of 280 million USD (300 million euros) is planned for the duration of the contract. The main objective is to improve the drinking water services, and expand it to peri-urban areas. The company will also develop the wastewater treatment services which currently only applies to 10% of the population.

The Federal State of Brazil will support the project through BNDES (Banco Nacional de Desevolvimento) and will take part in the financing process.

Gerard Payen, Chairman and CEO of the Water Division, Suez Lyonnaise des Eaux, comments: 'Our contract with Manaus is a significant step forward in the opening up of the Brazilian water sector to private sector participation. Other international call for tenders are currently being considered in the States of Bahia and Pernambuco.' He adds: 'We look forward to further partnering with the population and authorities of Manaus to meet their expectations and provide excellent level of service and quality water and wastewater treatment services.

Lyonnaise des Eaux, world leader in water management services, currently supplies over 100 million people with drinking water and wastewater services throughout the world and is present in major cities such as Buenos Aires, Atlanta, Manila, Casablanca and Sydney. Lyonnaise des Eaux is a subsidiary of Suez Lyonnaise des Eaux Group.