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Watertime workshop25th November 2005

University of Greenwich

Anne Le Strat

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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

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Diversified Resources50% underground water – 50% surface

water

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PARIS

Suburbs Suburbs

A water supply service split between different

operators

D (flowmeter)

D (flowmeter)

Production TransportDistribution

CEP - EFPE

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Duties of EAU DE PARIS

City of Paris70%

19871987

- Production of drinking water- Transportation of drinking water- Water Quality & Pressure in distribution

Responsibilities delegated by the Municipality Objectives given by the Municipality

- Quality- Security- Performance

600 employees and € 92 million invested in works every year

20112011

CEP

EFPE

6Consumers

CITY OF PARIS

C.R.E.C.E.P.Water Quality

Sampling & AnalysisLaboratory approved by the

State C.E.P.Distribution North

ParisLeasing

E.F - P.E.Distribution South

ParisLeasing

THE WATER SYSTEM IN PARISTHE WATER SYSTEM IN PARIS

EAU DE PARIS

Production Transportation Pressure Quality

Concession

Ministry of Health

Water QualityControl

1985 19852009 2009

20111987

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WATER MEASURING AND INVOICING

X 92,000

225.1 millions of m3

EAU DEPARIS

CEP&

EF-PEConsumers

X 35

7 3 5291 0 7 3 5291 0

Largediameter

pipesBuilding

connections

206.1 millions of m3

2004

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Drinking Water Cost in Paris

EAU DEPARISProduction

Consumer

CEP & EF-PEDistribution

0.4641 € 0.9105 €

0.7660 €Greater Paris

Waste Water DepartmentCollection and Treatment

0.7009 €

2.3774 €

StateWater Agencies & Others

Taxes

+

+

Cubic meter cost on October 1st , 2005

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End user cubic meter cost

10/01/05 (2.38 €/m 3 tax included)

38%

5%23%

34%

Drinking water VAT 5,5% Taxes Waste water

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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

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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

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Economics : - improved performance (financing of the network, costs, etc.).

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

Patrimony : - setting-up of effective monitoring of the City ;- changes to contracts – better defined objectives and assignments ;

ACHIEVEMENTS 2001~2005

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

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200

210

220

230

240

250

260

270

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

EVOLUTION OF THE WATER CONSUMPTION

Millions of m3 Loss for the distributors, Loss for EAU DE PARIS

- 49 000 000 m3

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EVOLUTION OF THE WATER LOSSESIN THE PUBLIC DISTRIBUTION SYSTEM

0

10

20

30

40

50

60

70

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Millions of m3Gain for the distributors, Loss for EAU DE PARIS

- 45 000 000 m3

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Evolution of Drinking Water Inputand economic consequences

215

225

235

245

255

265

275

285

295

305

315

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Millions of m3 Input = Consumption + Losses

For EAU DE PARIS : - 94 000 000 m3

For the distributors : - 4 000 000 m3

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Producer : the fall of the financial product coming from the sales to the distributors is not compensated. The financial result is negative

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

(the loads are almost fixed for both)

Montmartre Reservoir

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TODAY’S CHALLENGESAn 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 contractsDistribution: 2009Production: 2011Local 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.

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19

Cubic meter cost on October 1st , 2005 : detail

39%

9%23%

23%5%1%

Drinking water Waste water collection (Paris)Waste water treatment (great Paris) Water agencyState agency for river navigation Spécial tax City of ParisVAT