Aquafed

Hall and Hoedemann write:

With an office at the Rond Point Schuman, in the heart of the EU quarter in Brussels, the International Federation of Private Water Operators (AquaFed) has chosen a very prestigious address. This is the most expensive office location in Brussels, but located straight opposite of the European Commission headquarters it is ideal for lobbying purposes. AquaFed’s second office is on avenue Hoche in the centre of Paris.

The locations of the two AquaFed offices reflect two key features of this new corporate lobby group, launched in October 2005. Firstly, AquaFed’s efforts "to promote private sector participation in water and wastewater management" will be heavily focused on European Union decision-making. Secondly, AquaFed has strong French roots due to its close connections to the French water multinational Suez. AquaFed’s president is Gerard Payen, the former CEO and chairman of the Ondeo Group, Suez’ water division  ; and Jack Moss, Senior Water Advisor at Suez, represents AquaFed at international events.

Why was AquaFed established

According to the brochure in which AquaFed presents itself, “Up to now Private Water Operators as a body have not been represented internationally.” For most observers of the international water debate, this will be a somewhat surprising statement. Over the last five-ten years, the interests of the private water industry have been defended by a whole range of different international level lobby groups, including

the World Water Council (powerful international think tank with strong private sector leanings)

the World Business Council for Sustainable Development (WBCSD)

the International Chamber of Commerce (ICC)

Business Action for Water (a joint effort by the WBCSD and the ICC which is most active during UN CSD summits)

the “CEO Panel”, a PR vehicle for Suez and other private operators during the World Water Forum in The Hague (2000) and Kyoto (2003)

The World Economic Forum (which launched a Water Initiative in 2005)

the now defunct International Private Water Association (IPWA)

Add to that the intense lobbying efforts by individual private water corporations like Suez, Veolia and Thames Water and it is clear that AquaFed is very much an additional lobbying vehicle rather than filling a vacuum.

Two main motives stand out to explain why AquaFed was established to intensify the private water industry’s lobbying efforts. Firstly, the serious PR problems which Suez and other water multinationals face now that it becoming apparent that the high claims made for privatisation have not been fulfilled. Despite the PR budgets available to the water corporations, anti-privatisation activists are seen to be winning the public debate. Whether establishing an International Federation of Private Water Operators will help turn the tide remains to be seen.

Secondly, it is a fact that the water multinationals do not have a collective lobbying vehicle specifically aimed at influencing the European Union institutions. Suez itself is very active in EU lobbying, often bringing in heavyweights like former European Commissioner Yves-Thibault de Silguy, who is now Senior Executive Vice President of the Suez Group. Eureau, the prime voice of European water operators, includes both public and private sector companies. This means that its positions on issues like water liberalisation within the European Union, in the context of debates about the Single Market or the ‘Bolkestein’ Services Directive, are not as clear-cut pro-private as Suez would wish. Establishing AquaFed provides the supporters of liberalisation with a more effective lobbying force to influence EU decision-making.

Aquafed’s secret membership

Almost six months after AquaFed was officially launched, the group’s website lacks some basic information: there is no mention anywhere of which companies are members of AquaFed. "AquaFed membership is open to all privately controlled companies irrespective of their size or location", the AquaFed website states. It claims to "bring together over 200 water service providers operating in 38 countries worldwide", but a list of members is missing from the otherwise very professional website. Repeated email requests to the AquaFed secretariat for a list of member companies were not responded to.

This leaves a big question about how representative AquaFed is of private water operators. The website lists 38 named countries “where private operators that are linked to AquaFed are providing water/sanitation services”, but fails to name the companies. Suez and/or Veolia claim to operate in all the countries mentioned. Veolia’s website provides a link to the AquaFed website; Suez subsidiary AgBar put out a press release in which it proudly presented that it is a founding member of AquaFed ; Suez’ own website does not mention or link to Aquafed at all. None of the other private water companies - e.g. Thames Water, Biwater, Saur, Severn Trent - refer at all to the existence of AquaFed. Thames Water has publicly confirmed that they decided not to join Aquafed, despite being invited to do so.

It therefore appears that Aquafed may represent only Suez, Veolia and their subsidiaries. This is in contrast with the group’s presentation brochure which states that “The Federation’s legitimacy stems from the diversity of its members”.

AquaFed’s secrecy seems to conflict with its own ‘Code of Ethics’ which states that the group “will observe the highest standards of conduct when dealing with state and local government officials”. For industry lobby groups, disclosing the list of member companies is most basic level of transparency that can expected. AquaFed’s failure to deliver this makes it difficult for it to claim a role as a representative stakeholder.

The group’s presentation brochure mentions that AquaFed has an Executive Committee appointed by a General Meeting, but there is no information about either of these on the AquaFed website. Apart from highlighting that Gerard Payen is the group’s president, AquaFed fails to describe its governance and accountability structures. The website also lacks any information about AquaFed’s sources of funding. According to the ethics code, AquaFed “will collaborate with other public and private bodies, paying attention to the requirements of transparency, legitimacy and also respecting the needs for confidentiality where these arise”. It appears that Aquafed is treating its own membership and finances as confidential issues.^[1]

Resources

1. ^ Aquafed - another pressure group for private water by David Hall (PSIRU) and Olivier Hoedmann (Corporate Europe Observatory/TransNational Institute, Public Services International, March 2006