Watertime workshop 25 th November 2005 University of Greenwich

1. Anne Le Strat Watertime workshop 25th November 2005 University of Greenwich

2. Introduction PARIS  2.1 million inhabitants  100 km2  4 million consumers  600,000 m3 daily consumption  1,800 km of pipes inside the city  650 km of aqueducts 1.1 million m3 of drinking water storage capacity

3. Diversified Resources50% underground water – 50% surface water

4. PARIS Suburbs Suburbs A water supply service split between different operators D (flowmeter) D (flowmeter) Distribution Transport Production CEP - EFPE

5. City of Paris 70% Responsibilities delegated by the Municipality Objectives given by the Municipality - Production of drinking water - Transportation of drinking water - Water Quality & Pressure in distribution - Quality - Security - Performance Duties of EAU DE PARIS 1987 2011 EFPE CEP 600 employees and € 92 million invested in works every year

6. THE WATER SYSTEM IN PARIS CITY OF PARIS Ministry of Health Water Quality Control EAU DE PARIS Production Transportation Pressure Quality Concession 1987 2011 C.R.E.C.E.P. Water Quality Sampling & Analysis Laboratory approved by the State C.E.P. Distribution North Paris Leasing E.F - P.E. Distribution South Paris Leasing 1985 2009 1985 2009 Consumers

7. 1 1 0 0 9 9 2 2 7 7 3 3 5 5 WATER MEASURING AND INVOICING 2004 X 35 X 92,000 Large diameter pipes EAU DE PARIS CEP & EF-PE Consumers Building connections 225.1 millions of m3 206.1 millions of m3

8. Drinking Water Cost in Paris Cubic meter cost on October 1st , 2005 EAU DE PARIS Production CEP & EF-PE Distribution 0.9105 € 0.4641 € + Greater Paris Waste Water Department Collection and Treatment 0.7660 € 2.3774 € Consumer + State Water Agencies & Others Taxes 0.7009 €

9. End user cubic meter cost 3 10/01/05 (2.38 €/m tax included) 34% 38% 5% 23% Drinking water VAT 5,5% Taxes Waste water

10. State of the public water service in Paris in 2001 (last municipal elections) - • Strong Points • Quality of Service with no interruption of supply • a relatively low price for water compared with the national average • good image resented by the consumer • Weak Points • Economics : highly advantageous contracts for the distributors ; lack of transparency in the distributors’ accounts • Patrimonial : ignorance of the true state of the infrastructures managed by the distributors as well as of the work they have actually carried out • Management : Very little monitoring on the part of the city of its delegates ; no political vision • Communication: virtually non-existent user information and participation • Ethics : conflict of interest; distributors sitting on the board of directors of Eau de Paris

11. 3 given strategic orientations for EAU DE PARIS in November 2001 • To Insure the Quality of the Public Service for Water Supply • To Promote Sustainable Development • To Assert the Image of EAU DE PARIS

12. ACHIEVEMENTS 2001~2005 Economics : - improved performance (financing of the network, costs, etc.). Patrimony : - setting-up of effective monitoring of the City ; - changes to contracts – better defined objectives and assignments ; Management : • strengthening of financial procedures at Eau de Paris  ; • audit of the distributors → changes to their contract  ; Communication : • A powerful communication policy has enabled Eau de Paris to become known and recognized with a more readable name, communication campaign, website, vocal server … • A consultative commission of water users has been established by the city of Paris Ethics : • phasing-out of distributors in progress ; • Committee for Tender/Bid open to the elected representatives of the opposition  ; • a policy of sustainable development is being conducted within the company and a diversity charter has been defined for recruitment and promotion

13. EVOLUTION OF THE WATER CONSUMPTION Millions of m3 Loss for the distributors, Loss for EAU DE PARIS - 49 000 000 m3

14. EVOLUTION OF THE WATER LOSSES IN THE PUBLIC DISTRIBUTION SYSTEM Millions of m3 Gain for the distributors, Loss for EAU DE PARIS - 45 000 000 m3

15. Evolution of Drinking Water Input and economic consequences Input = Consumption + Losses Millions of m3 315 305 For EAU DE PARIS : - 94 000 000 m3 295 285 275 265 255 245 235 For the distributors : - 4 000 000 m3 225 215 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

16. Montmartre Reservoir Fall of consumption : economic effects Distributors: the financial result is divided by two but there remains positive. Why ? The financial product of the sales is decreased but it is compensated by the fall of the cost of the purchases of wholesale water Producer : the fall of the financial product coming from the sales to the distributors is not compensated. The financial result is negative (the loads are almost fixed for both)

17. TODAY’S CHALLENGES • An altered economic context (Aid’s Reduction from the AESN (Seine Normandy Water Agency), an increase in sewerage charges, a drop in consumption, alteration to standards leading to further expenditures) • Governance • - complete the changes to the capital of EAU DE PARIS • devise genuine and effective participation for users and, should the occasion arise, for other partners • - improve the financial reporting by the distributors  • speed up on the path to sustainable development . • Termination of contracts • Distribution: 2009 • Production: 2011 • Local elections in March 2008 • Three main choices • - maintain the present system of delegation shared with distribution and production • - opt for a single private delegate operator; • a single operator under direct municipality management • constituted as a public legal and financial entity.

19. Cubic meter cost on October 1st , 2005 : detail