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Arbitration court declares termination of Pécs Waterworks contract to be legal

The arbitration court of the Hungarian Chamber of Commerce and Industry has declared the decision of the Pécs city council to terminate its contract with the French-owned waterworks company Pécsi Vízmű (PV) to be legal, city Mayor Zsolt Páva (Fidesz) announced on Thursday.

The decision is non-appealable.

The local council of Pécs, which is controlled by the main opposition party Fidesz, annulled Suez's contract to operate its waterworks in September 2009 after it failed to reach an agreement with the company regarding repurchase of its stake in the utility. In early October, the local council set up a company to take over operation of the waterworks.

Suez Environnement Hungary managing director Zoltán Csorba has said Suez wants its ownership rights to be recognised before it starts any negotiations with the local council.

The local council of Pécs owns 50.05% of the waterworks, while Suez holds 48.05% and 1.9% is in the hands of other local councils. (MTI-Econews)