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British utility gets EBRD support in central/eastern Europe
Equity stake to help United Utilities improve water, wastewater standards
United Utilities, Britain’s leading operator of water and wastewater infrastructure, will strengthen its presence in central and eastern Europe with the help of an investment from the EBRD, the region’s largest single investor. The combined investment of UU and EBRD in the deal is approximately €50 million.
The Bank’s 50 per cent equity stake in United Utilities Europe will help the United Utilities group increase its ownership in three local water and wastewater companies – SV Sofia in Bulgaria, ASTV Tallinn in Estonia and Aqua Bielsko-Biala in Poland. United Utilities Europe will do so by acquiring existing shares from International Water Ltd, its previous partner in the region.
Thomas Maier, the EBRD’s Director for Municipal and Environmental Infrastructure, said the project is important because it supports the continuing development of these countries’ water utilities to international standards, benefiting local populations. He added that it will also demonstrate to other foreign investors the equity opportunities that exist in these former communist countries.
United Utilities’ acquisitions follow IWL’s decision to divest from the three countries to focus on its core areas and will allow United Utilities to build on its strategy to expand across the former Communist bloc. “Central and Eastern Europe is a strategic market for us and we are delighted to be in partnership with the EBRD in our three existing projects,” said Les Bell, managing director of United Utilities International.
The EBRD is the single largest investor in central and eastern Europe. In municipal and environmental infrastructure projects alone, the Bank has invested over €1.5 billion.
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