As such, the company is one of the most profitable businesses on the local utility market, with a net profit margin of 24 percent, higher than the profitability of gas distributors, electricity providers, fixed phone companies, and not far from the level of mobile phone operators.
According to the company's General Manager, Andreas Baude, the rise is mainly due to new consumers connected to the system in the past two years.
Earnings. "Since we were granted the license [in 2000], with the exception of the first year, we had earnings. Furthermore, our turnover rose last year by 27.35 percent over 2005, to €100.1 million," he said.
For 2007, Baude forecasts turnover worth €105 million and investments totaling €29 million, which includes projects initiated last year. "We have projects to replace or repair networks, worth €14.8 million, and projects related to the expansion of water sewerage, worth €7.8 million," the General Manager said.
A further €7.1 million is to be invested in modernization and acquisition of new technology and an information technology system for Apa Nova, Baude added.
Company officials also said the contract signed with the Bucharest City Hall will be renegotiated if representatives of the government body regulating water services, the Bucharest Agency for Water and Sewerage Services (ARBAC), agree.
Contract. "The General Mayor has agreed, but ARBAC, the technical regulator, says the contract is good. But a new contract could help sector mayors develop their sectors as they see fit," Baude said.
The Apa Nova manager added the company is trying to adjust several clauses to the contract so it can develop 400 km of sewerage instead of 30-40 km, as stipulated in the current contract.
Network
Baude said the entire water network in Bucharest should be replaced, some 1,800 km of sewerage and 600 km of branch pipes, which would take 40-50 years.
