French giant VE sees wealth from waste
By Jiang Jingjing (China Daily)
Updated: 2005-07-18 06:41

According to official figures, about 500 grams of waste is generated by each person every day, which comes to 700,000 tons of daily waste. But some experts' estimatied that at least 50 per cent of the daily waste is not properly treated.

Mora wants to pass the message to local governments that environmental protection is affordable.

VE is promoting public-private partnerships (PPPs), which can help the government to tackle financial difficulties.

Under a PPP, the government holds the right to the property, but outsources the project to a private firm and money is secured from financial institutions.

This is common practice in developed countries.

"The triangular structure makes the three parties co-operate, supplement, supervise and control each other, which makes work more efficient. The method can assist China," he says.

Currently many of VE's projects are carried out under BOT (build-operate-transfer). It means VE builds the facilities and the local government pays for receiving the services. The company will transfer the facilities to the government in 20 to 30 years.

"This method is very effective when governments do not heavy cash on hand," he says.

Mora says such a method can help the company to penetrate the second-tier cities across the country.

VE has achieved great success in China's large cities

VE's water division, Veolia Water, has signed a 20-year operationand maintenance contract for the Lugouqiao Wastewater plant in Beijing, built as part of the facilities for the 2008 Olympic Games.

In Shanghai Pudong district, Veolia Water has won a 50-year contract for full water services, including water production, distribution and customer services.

In Shenzhen, Veolia Water was awarded a 50-year contract for water and wastewater treatment.

In terms of solid waste, Veolia's waste management division, Onyx, is the first international company to manage a waste-to-energy project in China.

The firm is also involved in the Guangdong Integrated Hazardous Waste Treatment Centre Project in Huizhou, a city in South China's Guangdong Province.

Also in the province, Onyx won a 30-year agreement with Foshan city for a municipal waste landfill.

Onyx was awarded a five-year waste management services contract by Hong Kong Disneyland Resort and Hotels. It covers solid waste collection, recycling and composting as well as hazardous waste management, starting from August.

It will also build waste-to-energy facility in Guangzhou.

Dalkia, the firm's energy division, provides low-energy technology to Oriental Pearl Radio and TV Tower in Shanghai.

VE's transportation section is Europe's largest private operator of ground passenger transportation services.

(China Daily 07/18/2005 page3)

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