WATER : a challenge, OUR BUSINESS, complete control of the water cycle

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

CONTENTS p3

Messages

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WATER for SUEZ ENVIRONNEMENT IN FIGURES

p5

LOCATIONS

p6

COMPLETE CONTROL OF THE WATER CYCLE

p8

GLOBAL OFFER, WORLDWIDE PRESENCE

p10

CUSTOMERS AND BUSINESS MODELs

P12

PARTNERSHIPS AND RESPONSIBILITY

p13

SUPPORTING THE DEVELOPMENT OF WATER AND WASTEWATER SERVICES

p14

A WORLDWIDE NETWORK OF RESEARCHERS AND EXPERTS

p15

A NEW SERVICE LABEL : EDELWAY

p16

OFFERING CUSTOM SOLUTIONS: FOR  THE MAJOR ISSUES IN WATER

p18

MONITORING AND PROTECTING RESOURCES

p20

CONTROLLING WATER QUALITY

p22

ENVIRONMENTALLYFRIENDLY WASTEWATER TREATMENT

p23

PROTECTING THE COASTLINE

p24

MANAGING CUSTOMERS

p25

MANAGING AND PROTECTING WATER ASSETS

p26

MEETING THE SPECIFIC REQUIREMENTS OF INDUSTRIALS

GLOBAL OFFER, WORLDWIDE PRESENCE

Jean-Louis Chaussade CHIEF EXECUTIVE OFFICER

Bernard Guirkinger SENIOR EXECUTIVE VICE PRESIDENT OF WATER EUROPE

SUEZ ENVIRONNEMENT is universally recognised for the professionalism of its women and men in water business lines. Our know-how, expertise, and ongoing innovation enable us to meet all the water service needs of municipalities, industrial companies and consumers. In the 19th century, Lyonnaise des Eaux teams began to produce and distribute drinking water for towns and cities across France. Today, we continue this tradition at SUEZ ENVIRONNEMENT. Each contract we are awarded is an opportunity to gain further experience and to build a community of experts and technicians whose sole ambition is to achieve excellence. The defining characteristic of this community is its willingness to share and maximise expertise, from the head office to the treatment plant floor. This booklet presents the SUEZ ENVIRONNEMENT community of water business lines through an analysis of the major world challenges with which our services are confronted, demonstrating our ability to provide innovative solutions tailored to fit unique local conditions.

The water businesses constitute one of the historical cornerstones of GDF SUEZ activities. For 120 years, we have withdrawn and treated water to make it suitable for human consumption. For 120 years, we have collected and treated wastewater before returning it to the natural environment. The issues facing our businesses change over time (climate change, increasing urbanisation, stronger environmental regulations, etc.). New needs are emerging, such as dynamic stormwater management, automatic meter reading, reduced energy consumption and biomass recovery, integrated management of water resources, desalination… One asset of SUEZ ENVIRONNEMENT is our ability to meet all these challenges, because we manage the entire water cycle, from studies and project management at Safege to the design and the construction of treatment plants at Degrémont, and the complete management of large urban utilities and industrial facilities backed by the efforts of all our operational subsidiaries (Lyonnaise des Eaux, Agbar, United Water, Ondeo Industrial Solutions, etc.). Today, this community of water businesses has combined its forces and talents to develop innovative offers which rely upon operational excellence to maintain environmental performance.

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suez environnement - WATER : A CHALLENGE, OUR BUSINESS

WATER FOR SUEZ ENVIRONNEMENT

OUR MAIN OPERATIONAL SUBSIDIARIES THROUGHOUT THE WORLD

IN FIGURES

120 YEARS OF EXPERIENCE IN THE WATER BUSINESS LINES

76

MILLION INHABITANTS SUPPLIED WITH DRINKING WATER

 1 million in Europe 3 4,0 million in North America 8  ,2 million in South America 5,8 million in Africa and the Middle East 2  6,7 million in Asia

44

• OVER 10,000 PLANTS built by Degrémont in 70 countries

• OVER 200 CONTRACTS for the operation and maintenance of industrial sites

• LEADER IN CONSULTING ENGINEERING : no.1 in France, no.2 in Poland

MILLION RECEIVE WASTEWATER SERVICES

BREAKDOWN OF SUEZ ENVIRONNEMENT TURNOVER IN 2008 (AS OF DECEMBER 31, 2008)

2,8

International & Other

€ 12,4 Bn

5,7

TURNOVER

Waste Europe

3,9 Water Europe

Germany Eurawasser Algeria SEAAL* Saudi Arabia Jeddah Water Services* Australia Australian Water Services (AWS) Chile Aguas Andinas China Sino French Water Devpt Co Ltd Macao Water Spain Agbar United States United Water France Lyonnaise des Eaux Safege Ondeo Industrial Solutions (OIS) Dégremont Hungary Budapest Water Works (BWW) Pecsi Vizmu (PWW) Indonesia PALYJA Italy Acque Toscane Nuove Acque Morocco LYDEC Mexico Aguakan Bal Ondeo Qatar Khadamat Czech Republic BVK (Brno) OVAK (Ostrava) United Kingdom Bristol Water Slovakia Trencianske Vodarne A Kanalizacie (TVS)

Representative offices and operational services not shown. * Management only

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INTERNATIONAL PRESENCE with a strong european base SUEZ ENVIRONNEMENT first established its water activities in France and Spain. Lyonnaise des Eaux and Agbar therefore play an essential role in efforts to share expertise between operational subsidiaries. Degrémont and Safege support all operational subsidiaries and help SUEZ ENVIRONNEMENT develop throughout the world.

GLOBAL PRESENCE

Europe

DEGRÉMONT | SAFEGE

LYONNAISE DES EAUX | GRUPO AGBAR | EURAWAsSER | Ondeo Industrial Solutions | Nuove Acque | Bristol water

north america United Water | Bal Ondeo

Asia Sino French Water Devp Co Ltd | Macao Water | PALYJA

South america GRUPO AGBAR

africa Middle east GRUPO AGBAR LYDEC | SEAAL* | Jeddah Water Services*

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oceania Australian Water Services

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

COMPLETE CONTROL OF THE WATER CYCLE AN EXPERT FOR EACH BUSINESS LINE:

Safege brings expertise in studies, resources management, project management, and as Consultant Engineers is an international reference in all fields related to water, the environment, and similar works. Degrémont designs, builds and starts up facilities for drinking water production, desalination by reverse

osmosis, wastewater and sludge treatment. Various operational subsidiaries are privileged partners of local authorities, including Lyonnaise des Eaux in France, Agbar in Spain, United Water in the United States, LYDEC in Morocco and others. As a public utility provider, they ensure part or all of water and

wastewater management services. Ondeo Industrial Solutions is a major provider of services, engineering and equipment for industrial water treatment. The company’s «solutionsbased» approach provides customers with streamlined process water and wastewater facilities.

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STUDIES, DEVELOPMENT PLANS, PROJECT MANAGEMENT

DESIGN AND CONSTRUCTION OF WATER TREATMENT PLANTS

WITHDRAWING WATER FROM THE NATURAL ENVIRONMENT AND PRODUCTION OF DRINKING WATER

STORAGE AND DISTRIBUTION

SUEZ ENVIRONNEMENT engineers provide technical solutions to distribute, treat, and remove pollutants from water resources.

Whether for new units, extensions or remediation work, SUEZ ENVIRONNEMENT designs and builds all types of water treatment plants, for the production of drinking water, desalination of sea water, wastewater treatment, etc.

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SUEZ ENVIRONNEMENT withdraws water from the natural environment and treats it so that it is safe for consumption. Sometimes water is withdrawn from the sea, and desalinated before being transformed into drinking water.

The drinking water is stored and then distributed through a network of mains pipes which requires continual monitoring and maintenance.

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CONSUMPTION

DOMESTIC USES OF WATER

INDUSTRIAL USES OF WATER

WASTEWATER TREATMENT

RECOVERY OF SEWAGE SLUDGE

The drinking water routed through the mains is measured and invoiced to our various customers by means of meters and readers in conjunction with the customer services.

SUEZ ENVIRONNEMENT collects wastewater for local authorities, before routing it to wastewater treatment plants.

A great deal of water is used for industrial processes. Once treated, the water is recovered and any pollutants are removed before it is released back into the collection drains for municipal wastewater.

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Wastewater is routed to wastewater treatment plants. Once treated, the water can then be released back into the natural environment or re-used for watering, irrigation, or industrial processes.

The sludge produced by wastewater treatment is recovered and treated for use as compost in agriculture and gardening.

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GLOBAL OFFER, WORLDWIDE PRESENCE 10 CUSTOMERS AND BUSINESS MODELS 12 PARTNERSHIPS AND RESPONSIBILITY 13 supportiNg THE DEVELOPMENT OF WATER AND WASTEWATER SERVICES 14 A worldwide NETWORK OF RESEARCHERS AND EXPERTS 15 A NEW SERVICE LABEL : EDELWAY

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suez environnement - WATER : A CHALLENGE, OUR BUSINESS

CUSTOMERS AND BUSINESS MODELS A WIDE CONTRACTUAL OFFER Delegation of Public Services from leasing to concession SUEZ ENVIRONNEMENT is entrusted with the operation and management of a utility for a fixed term of contract. The company is generally paid directly by customers, and finances all or part of renewal (leasing) or new infrastructures (concession). Concession contracts generally have a longer term (10 to 30 years) than lease contracts (10 to 20 years) because the operator must offset construction costs.

PUBLIC FOUNTAIN, CITY OF BARCELONA

CONTRACTUAL SOLUTIONS TAILORED TO THE NEEDS OF PUBLIC AUTHORITIES SUEZ ENVIRONNEMENT has forged a longstanding partnership with the public authorities (national, regional, urban areas, cities) which are confronted to increasingly complex issues in the management of their water utilities. In order to meet these social, technical, environmental and regulatory challenges, certain authorities choose to form partnerships with professionals with the advanced know-how and international expertise they require to succeed. Each authority has its own unique needs, and SUEZ ENVIRONNEMENT adapts its partnership solutions to local conditions. Partnerships can take on several different forms, from complete management of the public utility to simple technical assistance or knowledge transfer.

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Operation and Maintenance contracts (O&M) SUEZ ENVIRONNEMENT is contracted by a local authority to operate a facility, assuming responsibility for all recurrent expenditures (personnel, energy, maintenance, etc.) and for all risks related to the operation of the facilities on contract. The private contractor receives a flat rate for its services. Management Contracts SUEZ ENVIRONNEMENT is contracted by a public authority to provide experts and managers to improve the efficiency of the public utility by implementing and sharing its expertise in utility management (technical and managerial) and training local teams. These contracts generally have a 5-year term, including an initial commissioning period lasting from 12 to 18 months.

CUSTOM SOLUTIONS FOR INDUSTRY Industry uses a great deal of water in its processes and produces significant quantities of wastewater. The best possible solutions must be implemented for the supply of industrial water of all quality levels and wastewater treatment. SUEZ ENVIRONNEMENT, through its subsidiary Ondeo Industrial Solutions, offers various types of partnerships, from the simple supply of equipment to turn-key contracts and the presence of employees on site at all times. Our responsiveness, adaptability, rigour and competence guarantee industrial customers the performance and results they expect. FACILITY INSPECTION, ONDEO INDUSTRIAL SOLUTIONS

Infrastructure construction and management contracts (Build Operate and Transfer - BOT) SUEZ ENVIRONNEMENT is entrusted to design, finance, build, and manage a major water utility facility for a fixed term of contract (e.g. a water treatment plant). Degrémont often uses this type of partnership.

MANAGING THE WATER OF THE LARGEST INDUSTRIAL SITE IN SCOTLAND The INEOS site in Grangemouth is a major petrochemical complex – the largest in Scotland. The site refines 40% of the oil produced in the UK, supplying ethylene, ethanol and plastic. Ondeo Industrial Solutions is a key partner of INEOS for environmental services, and is responsible for the delegated management of drinking and wastewater for a 20-year term. 30 Ondeo Industrial Solutions employees work on site, operating and

maintaining 2 demineralisation plants, 7 cooling systems, 3 wastewater treatment plants, and all related equipment and infrastructures. Ondeo Industrial Solutions takes a unique turn-key approach to identifying, design, build, finance, and manage projects with a view to generate value. The solution has saved INEOS over £ 6 million per year while at the same time streamlining production availability and reliability.

MANAGEMENT CONTRACT IN ALGIERS In March 2006, SUEZ ENVIRONNEMENT signed a 5 and a half year contract with the National Office for Wastewater Treatment (ONA) and the Algerian Water Board (ADE) for the management of the Algiers Water and Wastewater Treatment Company (SEAAL), in which they are both shareholders. SEAAL is responsible for the public drinking and wastewater utilities of the 3.2 million inhabitants of Algiers. SUEZ ENVIRONNEMENT has been brought on to in manage the company and organise knowledge transfer, improve the quality of the public utility

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(a 24 hr per day service, improved customer service, etc.) and to build expertise within the company. To achieve its objectives, SUEZ ENVIRONNEMENT has set up a team of 27 experts and has developed a structured, innovative approach to knowledge transfer. The WIKTI method (International Water Knowledge Transfer Initiative) has been implemented to assess the initial level of competences at the water company using specialised tools, then determine its requirements and ensure that local employees acquire knowledge through traceable resources.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

PARTNERSHIPS AND RESPONSIBILITY A RESPONSIBLE CORPORATE CITIZEN All our activities are governed by simple rules: guarantee the continuity of the public utility, act in solidarity with those in need, anticipate and manage risks, transfer our knowledge and maintain an open dialogue with stakeholders. It is because of these simple and effective rules that we are accepted and recognised by local populations, public authorities, and economic players in the locations where we operate. SUEZ ENVIRONNEMENT relies upon its unique operational competences and expertise to guide its customers as they do their part to achieve the Millennium Development Goals. Over the last 12 years, SUEZ ENVIRONNEMENT has provided drinking water to nearly 11 million inhabitants in emerging countries through its partnerships with public authorities, including individual access for 9.2 million and collective water points serving 1.8 million. In addition, 5.3 million inhabitants have been connected to a wastewater treatment network.

A FOUNDATION FOR SOLIDARITY IN BUDAPEST

LOCAL PARTNERS AND LOCAL COMMITMENT SUEZ ENVIRONNEMENT UNDERTAKES TO BUILD THREE TYPES OF LOCAL PARTNERSHIPS : • A partnership with the delegating authority which has contracted us, to whom we owe a quality of service beyond reproach and relations based on attentive listening and mutual comprehension. • Partnerships with local companies and investors enabling us to fine-tune our approach to regional issues. • The integration of local companies in the performance of the contract, which opens up new possibilities, such as the subcontracting of a variety of services.

Responsibility and citizenship are fundamental to SUEZ ENVIRONNEMENT and many forms of cooperation have been developed. In the United States, United Water provides training and employment to university students from Arlington to Washington to Milwaukee. In Indianapolis, the company works toward the social integration of minorities by breaking down large-scale governmental contracts into several more modest projects in order to make them accessible to small suppliers.

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To reduce social insecurity and help the local population carry out a smooth transition to a market economy, the “ Halozat Alapitvany ” foundation was established in 1996 in an agreement between the city hall of Budapest, public utility operators and social welfare organisations. The foundation provides financial assistance for access to essential public utilities, including drinking water, wastewater treatment, waste collection and district heating. Assistance is given either in the form of a significant reduction in water bills or help refunding a debt. Budapest Waterworks contributes nearly € 1.32 million per year to the programme.

SUPPORTING THE DEVELOPMENT OF WATER AND WASTEWATER SERVICES COMMITTED TO CLEAN WATER FOR ALL The Millennium Declaration, adopted by the UN in 2000, calls on States to make a commitment to reducing by half the number of people without access to drinking water or wastewater services by 2015. Today, more than 1 billion people still do not have access to drinking water, and 2.6 billion do not have access to wastewater system. SUEZ ENVIRONNEMENT is helping to overcome this challenge. From 1995 to 2008, SUEZ ENVIRONNEMENT provided drinking water to nearly 11 million inhabitants and connected 5.3 million inhabitants to wastewater networks through contracts in emerging countries. SUEZ ENVIRONNEMENT wishes to extend this commitment, in particular in regions where it does not directly operate. A dedicated internal organisation has been set up in order to meet the specific needs of developing countries. This initiative demonstrates the will of the company to assist the public authorities and thereby help achieve the Millennium Development Goals for access to water.

RESOURCES FOR ACTION THE SUEZ ENVIRONNEMENT WATER FOR ALL FOUNDATION Created in December 2007, the SUEZ ENVIRONNEMENT WATER FOR ALL Foundation reflects the commitment of SUEZ ENVIRONNEMENT to support solidarity actions in favour of the improvement and development of water and wastewater services. It fosters professional staffing through technology transfer and skill development. The Foundation finances Aquassistance, a humanitarian association led by Lyonnaise des Eaux and SUEZ ENVIRONNEMENT employees which provides help to disadvantaged populations in the fields of water and the environment. The Foundation also played a role in establishing a Chair for the management of urban water and wastewater services. Created at ParisTech, this Chair offers an «Executive MBA» course designed to train future leaders in water and wastewater services based in emerging and developing cities. The MANWAS (Management of Water Services) programme was created to meet

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a crucial need, and as yet has no equivalent anywhere in the world. Students alternate between the utility premises and the lecture hall during the year-long course, which will receive its first students in September 2009. SEED : SUEZ ENVIRONNEMENT WATER AND DEVELOPMENT Established in January 2008, SEED (SUEZ ENVIRONNEMENT WATER AND DEVELOPMENT) is a new subsidiary of SUEZ ENVIRONNEMENT created to offer delegated water and wastewater solutions to mediumsized cities in developing countries. SEED will operate on the basis of a new form of contract tailored to the specific situations of developing countries, taking a very participative approach (strong local involvement) – an essential social component of development – and offering a great deal of flexibility to provide room for future changes.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

THE NETWORK IN FIGURES

500

men and women as researchers and experts

7 000

days of technical assistance carried out annually by the CIRSEE

100

research programmes

65

million euros invested in R&D and technical assistance by SUEZ ENVIRONNEMENT in 2008

A worldwide NETWORK OF RESEARCHERS AND EXPERTS SUEZ ENVIRONNEMENT is supported by a global technical and scientific network, an essential asset in our efforts to increase the research potential of the Group and to acquire and develop the key methods and technologies for tomorrow’s services. The network is composed of centres of expertise and research laboratories.

R+ i Alliance : UNITING OUR RESEARCH EFFORTS

CERDEG CIRSEE

NWTC, NORTHUMBRIAN WATER TECHNICAL CENTER

LYONNAISE DES EAUX TECHNICAL CENTRE FOR WATER METERS

DENARD

SCIP WATER RESEARCH CENTER LABORATORIO AIGÜES DE BARCELONA

THE CENTRES OF EXPERTISE CARRY OUT THREE MAIN ACTIVITIES TO SUPPORT THE OPERATIONAL SUBSIDIARIES : • technical assistance • research and development • knowledge management

THE MAIN CENTRES FOR RESEARCH AND EXPERTISE ARE : The CIRSEE, International Research Centre on Water and the Environment (Le Pecq, France), specialises in the fields of water and wastewater treatment, analysis, and business line IT. The CERDEG and DENARD, Degrémont Research Centres, (Croissy-sur-Seine, France – Richmond, USA), specialise in water treatment and purification solutions which develop economically, socially and environmentally acceptable products.

The SCIP Water Research Center (Shanghai, China) conducts research on the treatment of industrial water. The Laboratorio Aigües de Barcelona (Barcelona, Spain) is part of the SS group specialised in water analysis and treatment The NWTC, Northumbrian Water Technical Center (Newcastle, United Kingdom) specialises in distribution networks and sanitation. The Lyonnaise des Eaux Technical Centre for Water Meters (Lyon, France) specialises in the metrology of water meters.

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R+I Alliance was created in January 2005 to define, finance and carry out R&D programmes of common interest to the main subsidiairies of SUEZ ENVIRONNEMENT and its associate companies in the water business lines. Today, the R+I Alliance company comprises 5 members: Lyonnaise des Eaux (France), United Water (USA), Agbar (Spain), Northumbrian Water (UK) and SUEZ ENVIRONNEMENT as a representative of all the Water subsidiaries in the world. The R+I Alliance is not only a technical forum, but also a genuine human network mobilised to address common research issues. Thanks to this mutual effort, this alliance means each member company can benefit from the pooled resources, technical skills and tools of its counterparts in order to conduct research and to innovate – two key activities for the future of our service offer.

A NEW SERVICE LABEL: EDELWAY COMPLETE DIAGNOSTICS We evaluate the environmental performance of an urban area then work with local authorities to build custom, long-term solutions. The process comprises several phases : • Evaluation Evaluation of the environmental footprint and assessment of the margin for improvement • Drafting of a roadmap indicating environmental commitments and utility management objectives • Implementation of tools adapted to the situation, objectives and resources of the customer • Evaluation of results and progress at predetermined milestones

THE WATER BUSINESS LINES IN THE EDELWAY OFFER

OUR COMMITMENT TO THE ENVIRONMENTAL PERFORMANCE OF OUR CUSTOMERS Edelway is a quality label established by SUEZ ENVIRONNEMENT to anticipate new constraints (regulatory, technical, etc.) imposed upon local authorities and to propose a turn-key offer to meet these new environmental challenges. The label represents a change in our business line approach. We are moving from the differentiated management of services (water, wastewater, waste management) to a comprehensive offer which sets contractual objectives. This initiative concentrates on three specific fields: the protection of biodiversity, the reduction of greenhouse gases and the conservation of natural resources.

Edelway is a label which brings together solutions developed by all our subsidiaries to meet the new challenges of water business lines: • Protecting biodiversity by protecting sensitive areas upstream from drinking water catchments, or identifying and reducing the micro-pollutants present in rivers and streams to improve water quality • Reducing greenhouse gases by producing energy from sludge biomass or building nearenergy independent treatment plants. • Making a commitment to conserve natural resources by leading leak reduction programmes in the networks or by recharging water tables to accelerate the natural cycle.

ANTICIPATING EUROPEAN REGULATIONS AND PROTECTING BIODIVERSITY THE EXAMPLE OF THE SIAGNE RIVER IN GRASSE The Siagne river is classified as a ” sensitive environment “ and because of  its low flow, the water released into the river must be of very high quality to protect the surrounding ecosystem. The process implemented in Grasse (South East of France) represents a technological first in France, integrating the latest membrane ultrafiltration

technique developed by researchers at Degrémont. This plant anticipates and exceeds the objectives established by European regulations, which set quality objectives matching those of bathing water for 2015. The plant and animal species of the ecosystems protected by the Siagne are not impacted by the water released by the city of Grasse and the biodiversity of the area is respected.

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suez environnement - WATER : A CHALLENGE, OUR BUSINESS

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OFFERING CUSTOM SOLUTIONS: FOR THE MAJOR ISSUES IN WATER 18 MONITORING AND PROTECTING RESOURCES 20 CONTROLLING WATER QUALITY 22 ENVIRONMENTALLY-FRIENDLY WASTEWATER TREATMENT 23 PROTECTING THE COASTLINE 24 MANAGING CUSTOMERS 25 MANAGING AND PROTECTING WATER ASSETS 26 MEETING THE SPECIFIC REQUIREMENTS OF INDUSTRials

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suez environnement - WATER : A CHALLENGE, OUR BUSINESS

MONITORING AND PROTECTING RESOURCES To succeed in using water more intelligently it is to guarantee the security of the drinking water supply, while acting to ensure sustainable conservation of this natural resource. The artificial recharging of water tables, sea water desalination, the re-use of wastewater and of course optimised distribution using leak detection systems are some of the solutions now available to local authorities wishing to protect their water resources.

TRACKING WATER LEAKS IN THE NETWORK By limiting leaks, considerable volumes of water can be saved, optimizing the process for withdrawing water from natural resources. Various techniques are used based on ultrasound technology and more recently based on helium gas. In Dijon, Lyonnaise des Eaux has set up an innovative leakage search system using a constant pre-location technique. 165 acoustic detection sensors have been placed in the network, and teams are now «listening in». Information is transmitted by SMS to ensure a quick reaction if a leak is detected.

A TEAM SAMPLES A WATER TABLE

INSTALLATION OF ACOUSTIC LEAK DETECTION EQUIPMENT DIJON, FRANCE

MONITORING AND MODELLING RESOURCES New knowledge about the way water resources function has enabled teams to anticipate changes in quantity or quality. At the request of the network operators of the Paris region, Safege has developed an IT tool to assist in the management of accidental pollution in the Seine river. Once pollution has been detected and measured, the model is used in real time during the crisis to simulate how it will spread. The length of time the pollution will take to pass through the water table can be predicted and the withdrawal of water from the Seine suspended during this period.

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ARTIFICIALLY RECHARGING WATER TABLES Water tables are recharged by injecting high-quality water via trenches or injection boreholes. Both natural (rivers at normal levels) and artificial (Wastewater treatment plant purified water) resources can be used. In Dunkirk, large pumps intake 25,000 m3 of water each day for recharging. Once the impurities have been removed, the water is filtered with ozone and coal before being released into a large open-air basin where it drains into the water table, almost as if it were a coffee filter. This water is then subjected to the natural filtration process through the soil and the table is maintained at a controlled level.

Perth : THE LARGEST SEAWATER DESALINATION PLANT IN AUSTRALIA Built by Degrémont and inaugurated in April 2007, the Perth plant (140,000 m3 / day) is largest seawater desalination plant in the Southern Hemisphere. The goal of the facility was to quickly equip the city of Perth with new drinking water production capacity during periods of severe shortages in traditional fresh water resources.

The contract is carried out within the framework of a public-private partnership called Alliance, which involves the Regional Water Authority in the construction and daily management of the plant alongside Degrémont teams. Degrémont is set to operate the plant for 25 years, and currently supplies water to 17 % of Perthians, about 250,000 inhabitants.

AERIAL VIEW OF THE DESALINATION PLANT IN PERTH, AUSTRALIA

IMPLEMENTING ALTERNATIVE RESOURCES Transporting water over long distances can be very expensive, and certain regions have had to rethink their resource management at the local level. Today, re-use and desalination represent two means of securing alternative resources. The re-use of treated water for agricultural and industrial purposes 165 billion m3 of wastewater is collected and treated in the world today, but only 2% is re-used. The development of processes using ultrafiltration membranes has increased the quality of treated water to the point that it can be used for agricultural and industrial purposes. Such a process proportionally reduces the amount of water directly withdrawn from water resources, reserving a greater percentage for human consumption. The desalination of sea water In the world, 40% of the population live less than 100 km from the sea. Out of 70 cities of over one million inhabitants without direct access to additional fresh water resources, 42 are located on the coast. Desalination by reverse osmosis has become practical thanks to the drop in production costs and is not an energyhungry solution. In addition, it is compatible with renewable energies such as wind turbines. Long «reserved» for arid countries suffering from water stress, desalination is now becoming a viable solution in countries confronted with recurrent droughts.

THE MILAN SAN ROCCO WATER TREATMENT PLANT, ITALY

The case of Spain is emblematic : two-thirds of the inhabitants of the Canary Archipelago consume planttreated seawater. In June 2006, Degrémont and Agbar were awarded a contract to design, build, and operate the future desalination plant of Barcelona for two years. The desalination plant will have a 200,000 m3 / day capacity, the largest in Europe. Degrémont has been present on the market of desalination for 30 years and has built over 250 plants.

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THE RE-USE OF WASTEWATER : THE MILAN SAN ROCCO TREATMENT PLANT (ITALY) The city of Milan experiences recurrent bouts of drought and removes its drinking water from a fragile natural environment. In order to confront these challenges, the city has chosen to equip itself with a wastewater re-use plant. Built by Degrémont, the plant implements ultra-violet treatment technology, an additional step required to guarantee the safety of treated water and to allow its re-use on crops which enter into the food chain. Every second, the plant intakes 4,000 liters of wastewater, which exit the plant about 10 basins down the line. When the water leaves the plant, it is crystalline, odourless and most importantly, it is bacteria-free. The water is ready for agricultural use. After one year of operation and a very dry summer in 2006, the results are positive : during the summer, the water treated by the plant was used to irrigate and sustain over 22,000 hectares of crops.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

CONTROLLING water quality Producing and distributing quality drinking water, of course means providing water that is completely safe for human consumption, but today it also means providing water that is enjoyable to drink, clear, and balanced in mineral salts.

WATER, THE MOST REGULATED PRODUCT FOR CONSUMPTION IN THE WORLD

DRINKING WATER PRODUCTION PLANT IN MORSANG-SURSEINE, france

ISO 22000 CERTIFICATION AT THE DRINKING WATER PRODUCTION PLANT IN MORSANG-SUR-SEINE The ISO 22000 standard for “Preventive Management of Health Risks” (GPRS), established in September 2005, seeks to apply to drinking water production the best practices for reducing health risks, often borrowed from the agrofood industry. The Morsang-sur-Seine plant is one of the largest drinking water production plants in the southern Paris region (Lyonnaise des Eaux). One component of the certification is an exhaustive analysis of the dangers that could threaten water quality and the definition of control means. The national working group carried out the analysis under the supervision of the Lyonnaise

des Eaux Technical Division with the support of several Lyonnaise des Eaux subsidiaries as well as the CIRSEE SUEZ ENVIRONNEMENT. The Essonne Department General Directorate for Health and Social Affairs (DDASS) is also a close partner of the initiative. Being awarded ISO 22000 certification at the Morsang-sur-Seine plant represents a major step in our quality control plan. Lyonnaise des Eaux is one of the first drinking water producers to be certified at the national level.

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Drinking water must meet high regulatory requirements for quality. Drinking water must be free of any substance or organism whose presence could lead to a health risk for consumers. Controlling the bacteriological and physicochemical quality of water represents one of our most important duties as a producer of drinking water. In order to best guarantee that our water is safe and presents no danger, steps have been taken to implement preventative risk analysis in accordance with the ISO 22000 standard. A risk prevention tool called “HACCP” (Hazard Analysis Critical Control Point) is one component of ISO 22000 certification. The HACCP method was developed during the 1960s and is commonly used in the agro-food industry. The approach consists of risk analysis with a view to set up critical control points. The drinking water production and distribution process is in many ways similar to that of the agro-food industry, in that both require production and continuous distribution as well as the presence of different operators throughout the process. The implementation of HACCP in SUEZ ENVIRONNEMENT operations calls upon the technical know-how and ability of the Group to innovate.

CHENCHIN LAKE DRINKING WATER PRODUCTION PLANT, TAIWAN

IN TAIWAN, DEGRÉMONT HAS SIMULTANEOUSLY INCREASED DRINKING WATER PRODUCTION AND QUALITY

DRINKING WATER PRODUCTION PLANT IN BENIDORM, SPAIN.

WATER WITH ADDED VALUE The control of drinking water now includes the concept of comfort. Even if water is perfectly safe for consumption, it may still be very «hard» or give off an unpleasant chlorine odour which could cause difficulties for domestic or industrial use (scale deposits on machines, overconsumption of detergents, etc.). SUEZ ENVIRONNEMENT and the CIRSEE offer quality control services to local authorities eager to improve the comfort of their consumers, from carbonate removal to the control of water taste and odour.

rEfErendum “In the town of Yutz in the Lorraine region of France, the mayor held a referendum in May 2003 to gauge support among the town’s 10,000 inhabitants for the construction of a carbonate removal plant in order to soften the drinking water. The additional cost amounted to 2 euros more per month per household. 96 % of the inhabitants approved the project, and five months later, the first brick was laid. The plant was inaugurated in December 2004.”

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In 2004, Taiwan was hit by a typhoon. The Chenchin Lake drinking water production plant was rehabilitated in record time by Degrémont and is currently the only operating facility on the island. This reliability bodes well for the future of the plant, which produces 450,000 m3 of drinking water per day versus 300,000 before the storm. The renovation not only had to significantly increase production, it also had to improve the quality of the drinking water. Water is very hard in Taiwan (close to 300mg/l of limestone) and it was required to implement effective carbonate removal. Another technique that has been implemented is filtration by granular activated carbon, a radical means of eliminating pollutants and the molecules responsible for unpleasant taste and undesirable odours. This modern, reliable plant reconciles efficiency and issues related to the comfort of consumers, and will be operated by Degrémont for a period of 15 years.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

ENVIRONMENTALLYFRIENDLY WASTEWATER TREATMENT Ensuring that collection networks and treatment stations function correctly, means that the natural environment is protected and users are satisfied. SUEZ ENVIRONNEMENT know-how covers the entire pollution abatement chain.

EFFICIENT, COMPLIANT wasteWATER TREATMENT PLANTS One of our priorities is to ensure that wastewater treatment plants are capable of releasing pollution-free water into the natural environment. The European ”Urban Wastewater“ Directive of 1991 established standards for the collection and treatment of wastewater. SUEZ ENVIRONNEMENT works alongside the public authorities to achieve compliance by offering a wide variety of solutions adapted to their requirements. The combination of skills on hand at Safege, Degrémont and at the operational business units enables SUEZ ENVIRONNEMENT to present a comprehensive, complete offer, from technical studies to renovation work

or the construction of new treatment facilities. Our R&D teams have developed the ”Virtual Plant“ programme in order to build virtual models of plants and plan out how the facilities will function according to various technological options. The end result is that the customer obtains optimized equipment that fits their requirements. SUEZ ENVIRONNEMENT, always seeking new challenges, launched a partnership in mid2007 with the CEMAGREF, a research project dedicated to the study of the micropolluants present in wastewater. Complete management of the wastewater networks Network diagnosis, computerised carto– graphy, real-time management of flows,

SLUDGE IN A BASIN, GUÉTHARY WASTEWATER TREATMENT PLANT

preventive and curative management of works and renewals are just a few of the solutions offered by SUEZ ENVIRONNEMENT. Biomass conversion The conversion of the biomass contained in wastewater also represents a major challenge. Once regarded as waste, today sludge can be developed into secondary raw materials or energy. SUEZ ENVIRONNEMENT offers advanced solutions such as composting, thermal drying and incineration. In addition, thanks to its Green Cubes offer, SUEZ ENVIRONNEMENT is able to transform a wastewater treatment plant into an environmental platform and energy source capable of recovering the organic materials present in wastewater.

CANNES: AQUAVIVA, A ”NEW GENERATION“ wastewater TREAMENT PLANT In December 2008, Lyonnaise des Eaux was awarded the concession contract for the Cannes regional wastewater treatment plant. The ”sustainable development“ approach of our project gave the Group an edge over our French and international competitors. This ”new generation“ plant will be one of the first carbon-neutral facilities in the world (free of greenhouse gas emissions).

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”Aquaviva“ will be Lyonnaise des Eaux’s largest plant for treatment by ultrafiltration (Membrane Bioreactor), and will also include the largest solar farm in the region (4,000 sq. m.). This efficient treatment process will enable re-use of treated wastewater as process water and to water golf courses and parks.

PROTECTING THE COASTLINE A wide variety of actions must be implemented to protect the coastline, including the installation of efficient wastewater management systems, the management and treatment of stormwater, and monitoring bathing water quality.

BATHING WATER : DIAGNOSTICS, ANALYSIS AND INFORMATION FOR THE PUBLIC Coastal communities have recently experienced a population upsurge which requires them to invest in facilities, infrastructures, and targeted tools. Increases in tourist activity complicate the management of these relatively small regions with vulnerable natural environments. The new European Bathing Water Directive was drafted to address this issue. It sets standards for the monitoring, evaluation and management of water quality that are more demanding than ever. The Lyonnaise des Eaux Coastline Technical Centre has developed a ”bathing water quality“ service in three phases : • Before the tourist season: Prediagnostics on the beaches to identify and monitor sources of pollution.

• During the tourist season : Inspections of all the critical points flagged during prediagnostics. The MER ® method (Rapid Enzymatic Method) is used to analyse the bacteriological quality of water, and provides results within 1 hour. The local authorities are given daily updates, and are immediately informed if a problem arises. • After the tourist season : Analysis of critical events with a view to improve the programme for the following year. The Lyonnaise des Eaux service was implemented in summer 2006 at several French beach towns including Biarritz, Etretat, Agde and Cannes.

USING MODELING TO optimize COASTLINE MANAGEMENT Safege, a global technical leader in the modeling of marine environments, has the expertise required to handle issues such as the disposal of wastewater near coastal areas, coastal erosion, and swell in ports. These complex models are produced using Mars, a software program which creates three-dimensional hydrodynamic models taking into account all environmental and solid transport conditions.

stormWATER CONTROLLED IN BARCELONA CLAPSA - AGBAR

An information network called ”Aquaspot“ has been established in coordination with the programme by which the inhabitants of Biarritz can receive live water quality updates by SMS, read-out or on the Web. THE ”CLEAN SEA“ BOATS COLLECT WASTE IN HARD-TO-ACESS COVES FROM CANNES TO THE TOWN OF VALLAURIS GOLFEJUAN.

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CLABSA (Clavegueram de Barcelona S.A) is a specialised subsidiary of the Agbar group in charge of the real-time control of the wastewater management system in Barcelona. The stormwater retention basins are the strategic points in the network. The purpose of these storm reservoirs is to limit the risk of downstream flooding and reduce the effects of sewer overflow. These two objectives are vital to Barcelona, which has high rainfall and a 4-km stretch of beaches visited by 10 million people each year.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

IN CASABLANCA, LYDEC HAS FOCUSED ON IMPROVING CUSTOMER SERVICE

MANAGING CUSTOMERS SUEZ ENVIRONNEMENT invoices over 3 billion m3 of water across the world each year. The Group must guarantee flawless management of its customer relations with public authority customers and end-consumers alike.

CLOSE CUSTOMER RELATIONS

NEW CUSTOMER SERVICE TECHNOLOGIES

As an operator of local public utilities, SUEZ ENVIRONNEMENT maintains close relations with its customers. First and foremost, SUEZ ENVIRONNEMENT must be especially attentive to their needs in order to identify areas for improvement. Lyonnaise des Eaux, for example, carries out an annual survey of 10,000 customerconsumers to evaluate its services and adjust them where required. An additional objective of SUEZ ENVIRONNEMENT is to inform and communicate by implementing the Group’s expansive customer knowledge base: customer call centres, magazines, agencies open to the public, online agencies…

Today, the development of new technologies is changing the way we manage our customers. Among these new possibilities is remote meter reading, which enables us to automatically transmit data. 28,000 meters in Paris’ Left Bank are now equipped with remote reading technology, and 100 % of these customers are invoiced by remote reading. Remote reading can be used to monitor consumption on the Internet, communal consumption by sector (buildings, parks, etc.), and can also be used to detect leaks on the water supply network or theft. In addition, the massive development of the Internet has led to the creation of online agencies. Customers of certain SUEZ ENVIRONNEMENT subsidiaries such as Lyonnaise des Eaux and Lydec can manage their accounts, transmit their meter readings, and view or pay their bills online.

LYDEC COLLECTION AGENT MAKING ROUNDS IN THE MÉDINA, CASABLANCA, MOROCCO

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The city of Casablanca signed a delegation contract with LYDEC in 1997 in order to improve the quality of its electricity, water, and wastewater services and better satisfy the needs of its 4.5 million inhabitants. Since the start of the contract, an emphasis has been put on developing a customer-oriented business policy for individual consumers, companies, and developers alike. The results are measured regularly by satisfaction surveys. Between 1997 and 2006, the satisfaction of customers increased from 50 to 93 %. The LYDEC network now comprises 15 agencies (totaling over 100 help desks) and an online agency. In April 2007, LYDEC and Crédit du Maroc signed an agreement enabling customers to pay their water and electricity bills at Crédit du Maroc cash machines. This new method of payment supplements the various other means that LYDEC offers its customers.

SAFEGE ENGINEERS AT WORK, FRANCE

DRINKING WATER TREATMENT PLANT, CLARIFICATION BASINS, MACAO, CHINA

MANAGING AND PROTECTING WATER ASSETS Water utilities are assets created by large-scale investments. The networks constitute the bulk of these assets. The French drinking water supply network comprises 850,000 km of pipes (enough to circle the globe 21 times), assets worth a total € 85 billion.

ASSETS IN POOR CONDITION CAN ALTER WATER QUALITY AND SERVICE CONTINUITY These assets must be preserved for the sake of current customers and that of future generations. This requires sensible and efficient maintenance and renewal programmes. SUEZ ENVIRONNEMENT has developed technologies which maintain the performance of the drinking water network, the quality of distributed water, and which help us select the right investments, thereby controlling water prices for consumers.

INNOVATIVE, POWERFUL TOOLS • The GIS (Geographical Information system) stores the structural data of a network and is able link them with operational information. This high-performance tool possesses detailed knowledge of underground assets.

• The Piccolo programme, used by SAFEGE, simulates water flows both quantitatively and qualitatively. This modelling tool optimises the operation of the distribution networks. • ECAT software, developed by SUEZ ENVIRONNEMENT, is used to diagnose the condition of the inside of mains without breaking into them. • The PREVOIR and WILCO tools supports these technologies and streamline renewal planning in order to maintain the network in good condition for future generations. The computerisation of the asset conditions and the ease of diagnostics provide the optimal information required for the proper management of all equipment.

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STREAMLINED MANAGEMENT OF THE DRINKING WATER NETWORK IN MACAO In 1982, Macao made the decision to entrust the supply and distribution of its drinking water to a private operator, SUEZ ENVIRONNEMENT. The goal was to meet the most demanding quality standards for drinking water efficiently as possible and at a controlled price. The management of water assets, in particular of the networks, is of primary importance in achieving these objectives for excellence. SUEZ ENVIRONNEMENT then set in motion a long-term mains renewal plan, based on the concept of anticipation. For example, between 2002 and 2005, 52 km of pipes were replaced, representing some 10 % of the network. The network is divided into zones controlled by teams with the most modern diagnostics tools available, and real-time updates of the geographical information system and the virtual network modelled with the Piccolo software.

suez environnement - WATER : A CHALLENGE, OUR BUSINESS

MEETING THE SPECIFIC REQUIREMENTS OF INDUSTRials

WASTEWATER TREATMENT PLANT AT AN INDUSTRIAL SITE

Industry accounts for just over half of water consumption in Europe. The use of water for industrial purposes increases in proportion to national income, from 10% in countries with low or average income to 59 % in countries with high incomes.

VARious NEEDS Today’s industrial companies are confronted with a vast array of challenges. They must meet increasingly strict environmental requirements, treat pollution, conserve resources, streamline costs, ensure that production equipment is reliable, etc. Water can form part of the industrial process itself, or be used for washing, to cool facilities (which represents between 70 and 80 % of the volume consumed) or to run boilers. Requirements in terms of water quality differ according to use. • Supply water and water for utilities This water is used in the cooling systems, boilers, or in the process or product itself (e.g. carbonated beverages, paper production). Quality and volume requirements vary enormously from one industry to another and from site to site. • Purified water This type of water is generally used in the semiconductor and micro-electronics

industries, where it is called ”ultrapure water“, as well as in the pharmaceutical and cosmetics industries. • Wastewater Depending on the quality of the effluent, processes must be set up that are capable of treating wastewater in accordance with the applicable standards. In addition, methods for the treatment and reduction of sludge must be designed and adapted to each site. • Re-used or recycled water The recycling and re-use of water have become major issues at industrial sites. This change in priorities is explained by the need to control water costs (treatment, evacuation, etc.) in order to increase output without installing an additional capacity for processing effluents, and to recover raw materials diluted in them, etc.

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CUSTOM SOLUTIONS SUEZ ENVIRONNEMENT offers a wide range of ”multi-service“ solutions for industry water cycles which are tailored to meet the specific requirements of industrial sites in terms of the optimisation of water, network maintenance, sprinkler water management, rainwater recovery and energy balance. • The O’Mobile‚ technology, developed by Ondeo Industrial Solutions, is a compact, flexible solution which is effectively a demineralised water production station on board a semi-trailer truck. The solution can be used to maintain the production line during maintenance on the plant’s chain for demineralised water production. • Off-site effluent processing has become a very popular solution for small- and average-sized production sites, which do not always have enough effluents to justify the existence of a treatment plant. Large industrial sites may experience peaks in effluent use justifying a temporary disposal solution. The Ecoflow™ service developed by Ondeo Industrial Solutions is designed for both of these situations. The service comprises a complete offsite treatment chain, from the storage of effluents at the outflow site to the complete characterisation of the wastewater at the inflow site.

ON-BOARD DESALINATION UNIT ON AN OIL PLATFORM

AERIAL VIEW OF THE SHANGHAI CHEMICAL INDUSTRY PARK, china

MEETING THE WATER AND WASTEWATER NEEDS OF THE LARGEST CHINESE PETROCHEMICAL PARK.

MEETING INDUSTRIAL CHALLENGES: DESIGNING AN ON-BOARD UNIT FOR AN OIL PLATFORM Ondeo Industrial Solutions specialises in the construction of desalination units by reverse osmosis for industry. The contract signed in 2005 with Total for the design of a process water production unit for an oil platform is unique not only because of the level of processes involved in the project, but also due to the technical quality of the assembled equipment. The unit must be tough enough to resist the wear and tear of operating on an offshore oil-rig platform off the coast of Angola, and its specifications are impressive: 9 meters wide, 15 meters long, 7 meters high with a total weight of 140 tons and a processing capacity of 90 m3/hr. Built in Belgium, the unit was transported by a special truck to the river Meuse then taken downstream to Rotterdam. Then it was transferred by cargo to the coast of Angola before finally being delivered and installed on the oil platform.

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The Shanghai Chemical Industry Park (SCIP) is home to the largest Chinese and international petrochemical industries. The 30-km industrial scheme has benefitted from the largest public investment in China, some 10 billion dollars. The platform has a dual purpose. It was designed to offer an industrial model attractive to foreign investors, as well as to provide a model for environmental protection. The Municipality of Shanghai has signed a 50-year contract with SUEZ ENVIRONNEMENT for the production of industrial and drinking water and the treatment of all the park’s industrial effluents. A wastewater treatment plant was designed to store and analyse the industrial effluents before treatment. In addition, a research and development centre dedicated to industrial wastewater and hazardous waste was inaugurated in July 2006. The centre is the first of its kind; its role is to analyse the polluted effluents and develop custom-tailored solutions through experimentation.

SUEZ ENVIRONNEMENT

COMMUNICATIONS DEPARTMENT 1, rue d’Astorg 75383 PARIS cedex 08 France TEL. +33(0)1 58 18 50 00

DESIGN, CREATION AND PRODUCTION

Les éditions stratégiques PHOTO CREDITS SUEZ Environnement - T. Duvivier Trilogic - J-P Salomon - S. Hitau F. Nussbaumer D. Moleiro - D. Brochot C. Dupont. Infographie : JM. Lagnel.

Printed on a paper made with pure ECF (Elemental Chlorine Free) ecological cellulose pulp from trees grown in sustainably managed production forests, and selected recycled three-layer fibres. Certified by the Forest Stewardship Council (FSC) – April 2009

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