French Vivendi acquires interest in Rabat’s water utility
France’s Vivendi Group recently announced the purchase of Electricidad De Portugal Group (EDP)’s 29 percent share holdings in Morocco’s drinking water and power distribution firm, Redal. The €44.9 million ($39 million) deal awaits approval from Moroccan authorities.
EDP related the cause of the sale to its intention to concentrate on a similar concession it holds in Brazil. Other sources suggest the reason is divergences of opinion among the Portuguese and Spanish partners, the Urbaser firm, an arm of Dragados group, over the management of Redal.
In 1999, Redal was granted a 30-year concession for the management of water and power networks in Rabat and its twin city of Sale, for a $1.5 billion investment. The firm plans to invest a total of 13.7 billion Moroccan dirhams ($1.18 billion) in upgrading the cities’ infrastructures. — (menareport.com)
© 2002 Mena Report (www.menareport.com)