Apa Nova business hit by leu depreciation

“This decline was due the exchange rate, because our inflow of cash is in lei,” the company’s newly appointed General Manager, Bruno Roche, told Business Standard.

Apa Nova’s net profit in the January-September period amounted to €16 million, idle compared to the first nine months in 2007. “We managed to post this result in spite of higher costs due to wages, energy and chemical products for water treatment,” Roche said.

He added that the company is to renegotiate the contract for water and sewage services with Bucharest City Hall. “We had a discussion with Bucharest’s General Mayor, Sorin Oprescu, who agreed to renegotiate,” Roche added.

Roche indicated that all Bucharest streets will be connected to the water and sewage network within five to six years. Currently, there are areas in Bucharest and its surroundings that are not yet connected to the 2,700 kilometer water network and the 2,400 km sewage network. However, “we are not in charge of all expansions. This also depends on programs developed by sector city halls,” Roche added.

In 2000, Apa Nova signed a 25-year contract for public water and sewage network services. The company’s shareholders are Veolia Eau, Veolia Environment Group’s water division (83.69 percent), and Bucharest City Hall, with 16.31 percent.