OLIVET, Loiret (Reuters) - For the first time in France, a local authority has recently passed the lapse of his contract water supply through a favorable opinion of state services.
The City Council of Olivet (Loiret), a common 22,000 inhabitants, puts an end to a 99-year concession granted in 1933 to manager of water Compagnie Generale des Eaux, now Veolia, a decision favorable opinion of the Regional Director Public Finance (DRFIP).
A judgment of the State Council in April 2009, called "common Olivet," prohibits a public service delegation may not exceed 20 years. This judgment was made after a lengthy court proceedings initiated by residents of Olivet.
"In the event of early termination of a concession contract, the provider, if he believes he has suffered an economic injury, may well claim financial compensation, which in this case, can reach 8 million euros, "said Hugues Saury, however, the UMP mayor of the city.
"It was therefore necessary, as the law encourages us to seize the DRFIP for advice."
In an opinion issued in December 2011, the services of the State felt that the lapse of the concession could be imposed, the contract having largely achieved "economic equilibrium".
Qu'avançait analysis, for several months, the local association Citizens' Initiative for water at Olivet, in favor of a breach of contract early.
"At Olivet, water is charged up to 20% above the market price when there is no difficulty in distribution, as this may be the case on mountain sites," said Andre Bouchoule The president of the association, to which the unanimous vote of council represents "an historic victory".
For Hugues Saury, twelve years of legal proceedings initiated by private citizens opposed to "the opacity of the concession" has prevented any form of negotiation.
"The lapse of the contract is in no way a victory but a single step", says local councilor. "Let us wait two months to see if Veolia wishes to withdraw from this break through the courts."
Veolia declined to comment on the decision of a municipal council as it considers sovereign.
The concession between the City of Olivet Veolia will end February 3, 2015. In the meantime, the municipality must decide on the new type of contract it wishes to set up: concession, lease, or regulated public.
Mourad Guichard, edited by Patrick Vignal
The City Council of Olivet (Loiret), a common 22,000 inhabitants, puts an end to a 99-year concession granted in 1933 to manager of water Compagnie Generale des Eaux, now Veolia, a decision favorable opinion of the Regional Director Public Finance (DRFIP).
A judgment of the State Council in April 2009, called "common Olivet," prohibits a public service delegation may not exceed 20 years. This judgment was made after a lengthy court proceedings initiated by residents of Olivet.
"In the event of early termination of a concession contract, the provider, if he believes he has suffered an economic injury, may well claim financial compensation, which in this case, can reach 8 million euros, "said Hugues Saury, however, the UMP mayor of the city.
"It was therefore necessary, as the law encourages us to seize the DRFIP for advice."
In an opinion issued in December 2011, the services of the State felt that the lapse of the concession could be imposed, the contract having largely achieved "economic equilibrium".
Qu'avançait analysis, for several months, the local association Citizens' Initiative for water at Olivet, in favor of a breach of contract early.
"At Olivet, water is charged up to 20% above the market price when there is no difficulty in distribution, as this may be the case on mountain sites," said Andre Bouchoule The president of the association, to which the unanimous vote of council represents "an historic victory".
For Hugues Saury, twelve years of legal proceedings initiated by private citizens opposed to "the opacity of the concession" has prevented any form of negotiation.
"The lapse of the contract is in no way a victory but a single step", says local councilor. "Let us wait two months to see if Veolia wishes to withdraw from this break through the courts."
Veolia declined to comment on the decision of a municipal council as it considers sovereign.
The concession between the City of Olivet Veolia will end February 3, 2015. In the meantime, the municipality must decide on the new type of contract it wishes to set up: concession, lease, or regulated public.
Mourad Guichard, edited by Patrick Vignal
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