In the face of complex economic, environmental and social issues, public authorities express increasing demand for expertise to optimize management of water, waste and energy.
Veolia’s leading capabilities and multiple operation skills in each of these businesses make it an ideal local partner of local economic growth and development. In addition, Veolia’s innovative approach of Public Private Partnerships (PPP) is critical to these communities who want to develop infrastructure, gain efficiencies, and get a competitive edge when it comes to creating jobs and economic growth.
Trust among stakeholders
PPP as practiced by Veolia for 160 years, in forms that are constantly tailored to local issues (strategic alliance, co-management contract, performance contract…)
- enable the municipality client to benefit from Veolia’s high level expertise.
- fully preserve the notion of public service, since the public authority sets service goals, priorities and prices, and audits the operator.
- are based on the notion of renewable contracts and are the best way to introduce competition and its positive effects on pricing and service.
- involve contractual performance commitments for quality of service, which are audited regularly by the PPP contracting authorities.
- include an annual technical and financial report.
Compensation based on clients benefits
In this new business models, Veolia is implementing a flexible, customer oriented approach that clearly demonstrates tangible benefits to the client and ties compensation to measured delivery of these benefits and improvements in environment and social performance.
In energy, for example, part of Veolia’s compensation is now based not on the volumes sold, but on the generation of energy savings.
Many drinking water production and distribution contracts signed by Veolia with local authorities are partly indexed on economic, environmental or social performance goals. Reducing water losses in Riyadh, Saudi Arabia is one example. In 2012, Veolia broadened the initiative by committing to sustainable performance goals for service, value and responsibility, adding performance indicators for improved service and network efficiency to contracts.