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AUSTRIA: EVN TO TAKE OVER REGIONAL WATER COMPANY

Article Abstract:

At the beginning of 2001 the power company EVN, which is owned 51% by the state of Lower Austria, is taking over the full stock of Nosiwag, a water supply company owned by Lower Austria. With 60 staff, Nosiwag supplies water to about 450,000 people and generates an annual turnover of just under Sch 200mn. It is Austria's second-biggest water supplier after the Vienna municipal utility. In future Nosiwag is to seek clients throughout Austria. Municipalities wanting to give up the operation but not the ownership of water and sewage works are a key target. Meanwhile in Upper Austria, Energie AG Oberosterreich is to set up a water joint venture with the municipal utility of Linz, SBL-Stadtbetriebe Linz GmbH. At the same time, foreign groups such as Suez Lyonnais des Eaux and Vivendi are eyeing the Austrian water market.

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AUSTRIA: CALL FOR PRIVATISATION OF WATER SUPPLY

Article Abstract:

Bernd Wolschner, chief executive of SW-Umwelttechnik and spokesman for the Austrian concrete and pre-fab industry, says that public subsidies for domestic water supply would become unnecessary if water supply and sewerage was privatised. Wolschner says that the price of tap water could be doubled from Sch 0,03 per litre at present. In 2001 the subsidies of Sch 4.5bn for domestic water supply support investments of about Sch 15bn. Wolschner claims that since subsidies are tied to the cost of each project, municipal water supply and sewerage projects are about 30% too expensive.

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