| Country : | MULTI COUNTRIES |
| Type of project : | Equity investment |
The International Financial Corporation (IFC) and Proparco invest in Veolia Water AMI
The aim of acquiring an interest in Veolia Water AMI is to support infrastructure development for water, wastewater and electricity services in Africa, Middle East and Indian subcontinent.
Paris, December 27, 2007- The International Financial Corporation (IFC) www.ifc.org, member of the World Bank Group, and Proparco, the subsidiary of Agence Française de Développement that finances private investments in developing countries, have invested in Veolia Water AMI www.veolia.com to support infrastructure development in Africa, the Middle East, and Indian subcontinent. The two organizations acquired a shareholding in the company on December 27, 2007.
The Veolia subsidiary operates water, wastewater, and electricity services in emerging market countries, where infrastructure is often the main impediment to providing people with water and electricity and holds back social, environmental, and economic development.
The shareholding was acquired under a capital increase. IFC and PROPARCO took 13.89% and 5.56% respectively of the capital stock of Veolia Water AMI. IFC’s investment includes €25 million in capital stock and a loan facility of €35 million. Veolia Water AMI intends to allocate this holding to its share capital and to the financing of its program to extend infrastructure and supply services through its local subsidiaries.
PROPARCO is investing €10 million to encourage the development of Veolia Water AMI projects to provide access to water, sanitation and electricity throughout the regions where it operates.
This is the first time the IFC and PROPARCO have invested in Veolia Water AMI.
“The IFC will play a major role in supporting Veolia Water AMI’s projects in these regions,” said Rashad Kaldany, head of the IFC’s infrastructure department. “There are enormous needs to be met and access to local financing is primordial to obtaining permanent investments in water infrastructure.”
“Veolia Water AMI’s business enables governments to modernize their infrastructure and face up to the challenges of population growth and urban concentration. By helping people have access to water, electricity and sanitation in the countries where we work, we are supporting the United Nations’ Millennium Development Goals,” said Patrice Fonlladosa, Chairman and CEO of Veolia Water AMI.
In Gabon, for example, the percentage of the population with access to water increased from 68% to 85% between 1999 and 2004 according to the WHO. Behind the figures are thousands of families who now have access to safe drinking water.
« Access to water and environment in Africa is a strategic priority of AFD Group. By initiating this partnership with Veolia Water AMI, PROPARCO works in consideration of economical and social growth in a region that has too long been ignored. This partnership will enhance French know how and moving closer to financial backers. Veolia Water AMI should play a key role in developing access to water and safer environment to African populations, and PROPARCO is helping it” said Luc Rigouzzo, PROPARCO general manager.