Sofia Water System

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On October 6 2000, the municipality of Sofia, Bulgaria, granted a 25 year concession contract for the city’s water and wastewater systems to special purpose company Sofiyska Voda AD. The company took over the operation, maintenence and management of a 3,500 km long water distribution network, a 1,700 km long sewerage system, two potable water treatment plants (at Bistritsa and Pancharevo), and a waste treatment plant. Sofiyska Voda served some 1.3 million people. The concession project was intended to rehabilitate, upgrade and expand the Sofia water and wastewater system to ensure city residents have access to clean water and improved sewerage services, which meet EU standards. Sofiyska Voda was established as a joint venture between International Water UU (75%) and Sofia municipality (25%). At that time, International Water UU parent companies included United Utilities plc (majority holder), Bechtel Enterprises Holdings Inc and Edison SpA. The concessionaires were expected to provide at least US$ 152 million of investment in water and wastewater services during the first 15 years of concession. For the first five years the investment were expected to be US$99 million. In December 2003 United Utilities bought the 37.5% share of International Water Ltd in Sofiyska Voda. The takeover was funded partially by the European Bank for Reconstruction and Development, who was going to take an undisclosed stake in Sofiyska Voda. As of December 2003 United Utilities/EBRD held 75% of the company and the remaining 25% were owned by the Sofia municipality. As of November, 2008 a 77% stake in Sofiyska Voda is owned by United Utilities, a holding company owned by UU Europe, of which 50-50 shareholders are UU plc and EBRD. The remainder of 23% is owned by Water Supply and Sewerage company wholly owned by the city of Sofia. In June 2010, French company Veolia has signed an agreement with United Utilities to take 58% of stake in Sofiyska Voda. In 2013, there was a large, populist, anti-monopoly campaign against Veolia, with protestors asking for a referendum on concessionary contracts. As of September 2013, the concession had not been terminated (which in itself would have been a breach of contract, the penalty for the state would have been between BGN400 million -USD400million)and BGN one billion. Might be renegotiated - see filing database. A 77% stake in the company is owned by United Utilities of which 50-50 shareholders are UU plc and EBRD. Thus UU owns 77%*1/2