Take Action: Tell Suez to Stop Exploiting the World's Water!

Suez Poster
Suez goes by many names including United Water, Ondeo, Degremont, Lyonnaise des Eaux and others. If you live in a city that is suffering from the abuses of Suez, you might find the Suez Wanted Poster to be useful. Suez Wanted Poster in English or [Word] Suez Wanted Poster en Espanol

In January 2006 Suez announced a 15% dividend increase for their shareholders. Meanwhile, more than one billion people, mostly in the global south, lack access to clean and affordable water contributing to an estimated 6,000 deaths each day from preventable water-borne diseases. A growing international campaign is challenging the policies and practices of Suez, citing the corporation for a range of abusive practices that place profit over the human right to water. These include:

• Refusing to extend services to poor neighborhoods;
• Cutting off water if people are unable to pay;
• Non-compliance with contractual requirements for maintenance and investment;
• Raising rates to unaffordable levels; and
• Threatening legal action when contracts are terminated

Suez v. Argentina: A Civil Society Perspective

Interview with Gustavo Spedele and Luis Bazan of the Comision Popular por la Recuperacion del Agua, Cordoba, Argentina

Water privatizations have collapsed across Argentina and most of the companies have fled. However, one of the last strongholds of the French multinational, Suez, is in Cordoba, Argentina. In Cordoba the state legislature recently approved a revised privatization contract after the company demanded the deal in exchange for dropping an ICSID case.

How do big multinationals like Suez use the threat of an ICSID case to pressure governments to do their bidding?

ICSID is used like a “boogie man” by governments to justify their acceptance of ruinous deals for taxpayers and the state. In Cordoba the only argument used by vice-governor Shiaretti (advised by Roberto Chama, a consultant for the Inter-American Develoment Bank) to defend the passage of the deal with SUEZ-ROGGIO was that, “when the new law is approved the ICSID case will be withdrawn; this was the agreement because the Cordoba people cannot continue with this sword of Damocles over our heads.” In summary, the deal had to be signed because otherwise the ICSID lawsuit would have to be paid.

Using the case of Aguas Cordobesas as an example, explain exactly what benefits Suez demanded and what they won when the state legislature approved the new contract. Suez promised to terminate the
ICSID case after the new contract was approved. Did this happen?

Suez demanded a pardon for all of the debts it owed to the province including back taxes it owed, fines for contractual incompliance, and investments. They denied they had an obligation to make investments to improve the service. Rather the state and taxpayers had to assume responsibility for the financing through a fund that is managed by SUEZROGGIO. They demanded that consumer water rates be increased over 500% or the government would compensate the company for losses through direct or indirect subsidies. They wanted the government to pay their creditors including $40 million owed to the European Investment Bank that was not used for investment in services but rather for financial negotiations. There was also a clause that stated that, until the contract ended in 27 years, the government guaranteed the rate of earnings of the company, and under any contingency that altered this rate the company would be compensated.

The legislature approved most of these conditions in the new contract including the pardon of the debts, massive consumer rate increases especially after 2008 and the installation of new water meters, annual subsidies for SUEZ-ROGGIO of about 25 million argentine pesos, and a reduction in the powers of the regulatory agency, to name a few of the measures. While the current ICSID case has been suspended, this is not as relevant as the fact that the new contract requires that the government, until the contract expires in 2027, approve within 90 days all rate revisions claimed by the company. If rate revisions are not approved in 90 days this implies the immediate termination of the contract due to breach by the state and permits SUEZ-ROGGIO to file new claims with ICSID. In addition to this, the contract establishes the possibility that, while the current ICSID claim in the name of Aguas Cordobesas is discontinued, individual shareholders among the consortium that previously made up Aguas Cordobesas could continue with the ICSID claim.

Describe the police repression that the people in Cordoba suffered when they protested the deal being made in the legislature. Why was the police repression so harsh?

The repression launched December 29, 2006, minutes after the approval by the legislature of the new contract, was the only response the government found to face the growing popular mobilization challenging the massive and perpetual water rate hikes proposed by SUEZ-ROGGIO. The popular outcry produced a profound crisis of government that caused the fall of the minister of public works, the state controller, and the head of ERSEP (the public services regulatory agency). The media and political analysts attributed the repression to the fact that this was the last opportunity before the 2007 elections that the government had to fulfill its promises to the corporations. Therefore, they passed the contract package and paid the price by using the police to repress the popular mobilization. This meant more than 50 people were wounded, either beaten or hit by rubber bullets and 10 were jailed. The order to attack a peaceful demonstration was given by the vice-governor Schiaretti. The repression was also an attempt to quell our enthusiasm for organizing a popular consultation on water privatization and to discourage our process of building a broad multisector coalition in defense of water and life.

What will this new contract deal with Roggio/Suez mean for the people of Cordoba? How will it affect access to clean and affordable water?

A basic principle of water, sanitation and public health is the requirement of universal access for all, including access to sufficient quantity and quality of water without cut-offs and stoppages. With the passage of this contract the basic principle of universal access to water for all will be in constant risk until 2027 for the people of Cordoba, Argentina. SUEZ-ROGGIO will be left able to impose their will and their main objective will be the maximizing of profits.

Click here to read the full report – “ Challenging Corporate Investor Rule".

Learn More

• You can read more about Suez here.
• Read the statement to Suez Shareholder Meeting 2006.
• Read more about Suez' sample cases of abuse.