Western companies tested for Bucharest water

(story to be published in tomorrow’s issue, March 21)

Bucharest municipality yesterday was to designate the winner of the tender for a 25 year-leasing of the water and sewerage systems of the city, the competitors being Generale des Eaux, Suez Lyonnaise des Eaux from France, International Water Ltd, from Great Britain and Azurix Corp from the United States. The main selection criterion is the price in the bids for water and sewerage systems. The company that offers the highest investments for the lowest prices will be the winner. The winner designation procedure is used for the first time in Romania, the text of the contract entering the tender already signed by the bidder and approved by the General Council of Bucharest City. The reason for which the municipality decided to lease the water and sewerage systems is the fact that the General Water Regie cannot support the rehabilitation of networks, pipe replacement and the improvement of water quality from its own resources. According to the contract, the winning company pledges to invest about 850 million dollars in the improvement of the water and sewerage network. Turnover posted by the water regie at present is estimated at 70 million dollars annually. The regie employs 5,000 people and its restructuring is regulated in the task book after being negotiated with the trade unions.