Municipal partners

 

Operating models

Hungary - Budapest - Parlament

Hungary - Budapest - Parliament

In Hungary, Veolia Water supplies 16 million m3 of healthy drinking water for its private consumers every year and takes care of the collection and the treatment of 300 million m3 of wastewater and rainwater. Day by day more than 2,000 specialists provide local authorities with a quality service that satisfies all requirements.



In Hungary, as in locations all over the world, the Veolia Water Group uses a proven and trusted operation model in harmony with the Hungarian legal framework.

There are two types of models in use in Hungary: concession and lease solutions.

In case of the concession-type solutions, the property of utility is in the company's books and for the term of the contract - with the restrictions stated in the law - the operator is the owner of the property and reaps its benefits. From 2007, according to the law ,this type may be extended with a property management construction.

In case of the lease-type solutions, the utility assets remain both in the ownership and the books of the local authority, the operator acquires usage and control rights, and also pays a lease fee to the owner for this use.

In both cases the local government owner sets the prices.

The advantages of the operation models

  • Ensuring long-term operating conditions that are adapted to various environments and individual requirements.
  • The participation of the private sector helps to create resources.
  • The accountable contractual cooperation regulations are precisely defined in detail.
  • The operation and quality parameters expected from the operator can be monitored precisely.
  • The management is monitored by an independent specialist.
  • The reconstruction and development resources are ensured in the contract (use of lease fee).
  • The operator has a vested interest in efficiency, so increasing the standard of the service.
  • On national level the price of the service is favourable.