Articles
General · 31st January 2010
Paris Takes Back Control of its Water
The water supply service of Paris became 100% public on 1st January 2010. The private concessions of Suez and Veolia were terminated at the end of 2009. Eau de Paris, wholly owned by the city of Paris, now runs the entire water service of Paris.
Unlike most countries in the world, water services in France are mostly run by private companies, and dominated by the large multinationals Suez and Veolia. In 1984 a right-wing council controlled the city of Paris, and awarded 25-year contracts to both companies for water distribution in the city, each covering one half of the area.
The two companies not only held the contracts for water distribution, they also owned 14% of SAGEP, the part-municipal company which was supposed to regulate the companies’ contracts, as well as managing the bulk water supply. The terms of the contracts were very favourable to the companies, reflecting their close relations with the politicians who awarded them.
In 2001, the Socialist Party and the Greens won control of Paris city council. The first steps taken by the new council were to renegotiate the terms of the contracts, to remove some of the worst provisions, and then to transfer the companies’ shares in SAGEP to a state investment agency. SAGEP was also renamed Eau de Paris.
Because the contracts expire at the end of 2009, the council has the opportunity to take over the service at that date without having to terminate the contracts. Studies commissioned by the council showed that there would be savings of about €30million per year from the remunicipalisation, as a result of eliminating excess profit and of reducing the transaction costs between three different bodies. The group then won the next election, in 2008, on a manifesto which included the promise to remunicipalise the entire water service.
The remunicipalisation will involve responsibility for all water services being taken over by Eau de Paris, which is being reconstituted as a public company, 100% controlled by the municipality. From 1st January 2010, the water in Paris will be fully public for the first time in over 150 years.
Also see Paris Reclaims Public Water - Feb 2010 by Food & Water Watch (USA)
Unlike most countries in the world, water services in France are mostly run by private companies, and dominated by the large multinationals Suez and Veolia. In 1984 a right-wing council controlled the city of Paris, and awarded 25-year contracts to both companies for water distribution in the city, each covering one half of the area.
The two companies not only held the contracts for water distribution, they also owned 14% of SAGEP, the part-municipal company which was supposed to regulate the companies’ contracts, as well as managing the bulk water supply. The terms of the contracts were very favourable to the companies, reflecting their close relations with the politicians who awarded them.
In 2001, the Socialist Party and the Greens won control of Paris city council. The first steps taken by the new council were to renegotiate the terms of the contracts, to remove some of the worst provisions, and then to transfer the companies’ shares in SAGEP to a state investment agency. SAGEP was also renamed Eau de Paris.
Because the contracts expire at the end of 2009, the council has the opportunity to take over the service at that date without having to terminate the contracts. Studies commissioned by the council showed that there would be savings of about €30million per year from the remunicipalisation, as a result of eliminating excess profit and of reducing the transaction costs between three different bodies. The group then won the next election, in 2008, on a manifesto which included the promise to remunicipalise the entire water service.
The remunicipalisation will involve responsibility for all water services being taken over by Eau de Paris, which is being reconstituted as a public company, 100% controlled by the municipality. From 1st January 2010, the water in Paris will be fully public for the first time in over 150 years.
Also see Paris Reclaims Public Water - Feb 2010 by Food & Water Watch (USA)