Mayor Edgar Savisaar, Chairman of the Board of ASTV Roch Chéroux and the representative of the major shareholder United Utilities Bob Gallienne have signed the amendments to the Services Agreement today at the Town Hall. The amendments shall significantly accelerate the construction of the sewerage network and ensure the provision of the sewerage network for the areas established earlier i.e. the houses built based on the construction permit issued before 22 March 1999, within the Tallinn PWS Development Plan approved by the Tallinn City Government, by the end of March 2011. The amendments to the agreement places the responsibility for the water supply and sewerage network construction programme, in the areas established earlier set out in the Tallinn PWS Development Plan approved by the City, on the water company. The period of the Services Agreement shall be extended to 2020. The City of Tallinn and the water company agreed that the K-coefficient would be fixed as per the existing Services Agreement for the period of 2008-2010 and at 0% for the years 2011-2020. Based on the Public Water Supply and Sewerage Act, the development costs of the areas established earlier shall be recovered from the revenue generated from the tariffs. According to the amendments, from March 2008 onwards, the development component shall be added to the invoices to be issued to the domestic customers for water supply services. As the City of Tallinn shall compensate the development component in full, this amendment shall bring no changes for the customers and end-users regarding the tariffs. The total cost of the water supply and sewerage project in line with the Tallinn PWS Development Plan is 1.4 billion kroons including VAT and the Company has taken the obligation to deliver it by March 2011. The amendments signed today ensures the revenue visibility of the company until 2020, as the Services Agreement is extended by 5 years and the K-coefficient shall be fixed until the end of the contract period. The financial costs related to this project are also covered. Additional information: Reigo Marosov Head of Communication +372 6262 209 reigo.marosov@tvesi.ee Eteri Harring Head of Treasury and Investor Relations +372 6262 225 eteri.harring@tvesi.ee
ASTV and the City of Tallinn have signed the water supply and sewerage network extension plan of the City
| Source: Tallinna Vesi