A Hungarian arbitration court has ruled that the city council of Pecs was legally entitled to terminate its water service contract with the multinational Suez Environnement, and take over the running of the service itself. In March 2010:
In September 2009 Pecs city council gave notice to Suez that, at the end of September, it would terminate the water contract with the joint Suez-municipal company Pecsi Vizmu (48% owned by Suez, 52% by the municipality), because of excessive profits and high prices: "the company's acquisitions of stakes in other small water utilities, and the high water utility fees charged by the firm, did not serve the interests of residents." The contract was originally awarded in 1993, without any competitive tendering.
Global Insight October 10, 2008
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