France: An Improved Partnership in the Motherland of Multinational Water Companies

Abstract

The French water sector is organized in a way that is quite distinct from the organization of the sector in most other European countries. Unlike in England, there is no full privatization of utilities through the sale of assets. However, in contrast with other European countries, with the exception of Spain, most municipalities delegate the provision of water and sanitation services to private companies. Two thirds of French citizens receive their water from just three private companies – Veolia, Suez and the much smaller SAUR. They have signed a total of 4,700 contracts with municipalities for drinking water alone. These companies are also the most active players on the international water market, serving, directly or indirectly, 163 million people in about 40 countries in 2010, with Veolia and Suez being by far the largest players. In France, where the state dominates the economy, the strong presence of private companies in the water sector may seem counter-intuitive. It is explained largely by history, as will be shown below.