The funds will be used by Veolia Voda to continue its expansion in the Bank’s countries of operation with an emphasis on development in Russia and Ukraine. A holding company for Veolia Water Central and Eastern European activities, Veolia Voda has already made successful entries into the markets of Hungary and the Czech and Slovak republics.

The EBRD’s investment will support the entry of a world leader in the water sector into Russia and Ukraine. As well as supporting a rise in quality of the provision of water and wastewater services, Veolia brings a commitment to transparency and good corporate governance. The development of effective and sustainable infrastructure is crucial for the successful transformation of economies in the EBRD region and infrastructure projects are playing an increasingly important role in EBRD investments. „Improving the supply of water and reducing the danger of pollution and sickness by raising the quality of wastewater treatment made a real difference to the quality of people’s lives. Veolia’s track record in this sector makes them the ideal partner in the drive to transform this sector in areas where international operators have yet to enter the market.” Thomas Maier, EBRD Director for Municipal & Environmental Infrastructure.

The EBRD provided €307 million in support of municipal and environmental infrastructure projects in 2006 and has committed a total of €2.8 billion in 165 infrastructure projects. (since 1996 when the Bank first started MEI investment). Investments in water services totaled €1.6 billion during this period. (