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FCC enters Montenegro with Aqualia contract

09/08/2011

FCC enters Montenegro with Aqualia contract

FCC has gone one step further with its internationalisation policy. Its water management subsidiary, Aqualia, has been awarded a contract to build a wastewater treatment plant in Niki?, the second largest city by population of Montenegro. The plant, which will be the largest in the country, will treat 15.5 million litres of water per day, serving 100,000 people. It represents a backlog of 14 million euro.
FCC enters Montenegro with Aqualia contract

The contract, which is financed by the European Investment Bank (EIB), represents Aqualia's first step into the Balkans, a region with significant development potential in the wastewater treatment business in the short and medium term using EU pre-accession funds.

Aqualia it is currently building in Rumania the wastewater treatment plants of Agnita, Dumbr?veni and Zimnicea. Its participation in the design, construction, operation and maintenance of these plants will help the country achieve the environmental objectives set out in the Water Framework Directive, which, among other stipulations, requires that 100% of wastewater be treated. This practice guarantees future sustainable development since treated water is returned to the environment in optimal conditions.

The Citizen Services Group's subsidiary continues its process of internationalization, which already reaches 17 countries. This international diversification strategy has enabled the company to attain a leading position in the outsourced water management market in Portugal and to become the top operator in Moravia and Silesia (Central Europe).

Central and Eastern Europe has become a strategic growth area for Aqualia since it acquired SmVaK, the leading water services company in the Moravian-Silesian region, which serves 1.2 million people. SmVaK has two special features: firstly, it does not operate in concession since it owns the infrastructure (and the term of its activities is, therefore, indefinite); secondly, it is one of the few examples of a company that provides crossborder water supply, serving 100,000 people in Poland.

Aqualia uses this leading regional position as a platform for its expansion into nearby countries where it can offer better management and take advantage of European funding for infrastructure development. In this sense, the work carried out by FCC?s water management subsidiary in other countries which receive EU funds, such as Spain, enables it to provide essential support to its public customers in the process of requesting and managing European Union funding.

In this area, also highlights the creation of Aqualia New Europe, a joint venture with the European Bank for Reconstruction and Development (EBRD), which owns 49% of it. This new company works to improve water management systems in Central and Eastern Europe through direct investments in infrastructure or equity stakes in companies that manage water services. The creation of this company, the unprecedented stake held by the EBRD and the funds committed by the bank (close to 80 million euro) reflect the EBRD's confidence in Aqualia and in the sector's future growth.

About Aqualia
Aqualia heads the water division of FCC, one of Europe's leading citizen services companies. It is the fourth-largest water company in the world and operates in 17 countries on 3 continents and in over 1,100 municipalities, serving more than 27 million people. It has a backlog of 13 billion euro in stable, non-cyclical projects, 30% of which comes from contracts outside Spain. FCC?s water management subsidiary responds to the needs of all parties, private and public, at all stages of the water cycle, providing water for human, industrial, and agricultural uses.

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