1. Innovative partnership at the service of citizens and the environment: best practice in transport, water and waste sectors Water management by MIDEWA Peter Kunert Chairman of the supervisory board of MIDEWA Brussels, 5th October 2010

2. Slide 2 Overview I. II. Initiation of the PPP-model MIDEWA III. MIDEWA today IV. Foundation of MIDEWA 10 years of PPP - summary V. Summary

3. Slide 3 I. Foundation of MIDEWA Municipal holding company Mitteldeutsche Wasser und Abwasser GmbH Stadtwerke Zweckverbände Gemeinden Takeover of independent power 1992 - 1995 MIDEWA Wasserversorgungsgesellschaft in Mitteldeutschland mbH Foundation on 05.12.1996 through 280 municipalities Transferee The MIDEWA Wasserversorgungsgesellschaft in Mitteldeutschland mbH was founded as part of the divestiture of Mitteldeutsche Wasser und Abwasser GmbH in 1996. The detachment of the water supply and wastewater disposal from the former company entailed the need for municipalities that did not aspire own solutions, to find a supply structure and organization. In consequence, 116 municipal partners founded MIDEWA. They represented about 280 mostly small municipalities, which partly have joined in associations or in a municipal holding company.

4. Slide 4 II. Initiation of the PPP-Model MIDEWA outdated water supply systems and high investment needs no loan extension by the banks due to over-indebtedness and mismanagement preservation of the local community of interests and responsibilities Maintenance of public control– Strengthening of financial power - Benefit from private know-how Sales revenue remains in the MIDEWA to reduce liabilities European tender of 25.1% of the shares and the operational management aiming at the participation of a private partner Veolia-subsidiary OEWA Wasser und Abwasser GmbH wins the tender

5. Slide 5 II. Initiation of the PPP-Model MIDEWA Entrepreneurial partnership between the municipalities - MIDEWA – OEWA/Veolia Preservation of the autonomy of MIDEWA through majority of shares Transfer of private know-how Support of local interests Creation of an efficient Organization Sustainable human resources policy Water-pricing policy with incentive system Quality assurance concept – infrastructure and water quality Establishment of an integrated quality management system Continuous investments in water supply installations Utilization of synergies Market development and marketing activities Evolution of a water company to an environmental service provider

6. Slide 6 MIDEWA – scope of services Wastewater disposal Public lighting Management of municipal swimming baths Heat supply Industrial services Services for the flooding of lignite mines Further services Water supply

7. Slide 7 III. MIDEWA – today in Sachsen-Anhalt Turnover 2009 45 Mio. Supply area 3.110 km² No. of staff 400 Population (wastewater disposal) 210.000 No. of customers 104.100 Population (drinking water) 370.000 Drinking water volume 2009 20,2 Mio. m³ Municipalities supplied 85 Berlin Berlin

8. Slide 8 III. MIDEWA – member of the Veolia Wasser Group 50%100% 74,9% 25,1% 50% 74,9% (1990) (1999) (2001) (2003) (2006)(2003) FSA Fernwasser Sachsen-Anhalt GmbH Wärme- und Energieges. GHC mbH (WEG) INFRA Service Sachsen-Anhalt GmbH (2009) (2007)(2004) 49 %100 % 50 % 45,8 % 100 %

9. Slide 9 þIndependent, successful, majoritarian municipal company with high reputation þService provider in the infrastructural and environmental sector – all under one roof! þBalanced distribution of concession and management contracts þThree water price reductions through an incentive system in co-operation with the private partner þSolidarity ensures consistent prices IV. 10 years of PPP - summary

10. Slide 10 þPerformance-enhancing company agreement with job security and health management, high proportion of trainees and consistent training of staff þCustomer-oriented structures and service guarantees þCertified in quality, environmental and safety management þCertified in job and family (Beruf und Familie) þReplacement of 300 km water supply pipes, reducing the water losses by half þFair co-operation between MIDEWA und OEWA/Veolia Wasser IV. 10 years of PPP - summary

11. Slide 11 Incited by the PPP model, MIDEWA developed from a municipal water supply company to a successful environmental services provider Summary