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Annual Report Budapest Waterworks Annual Report Budapest Waterworks 2017 06 BUDAPEST WATERWORKS • ANNUAL REPORT 2017 BUDAPEST WATERWORKS provides water utility services in Budapest, which is the ninth largest city of Europe. In terms of size and the level of technological advance - ment Budapest Waterworks, with its nearly one and a half century history, is one of the leading water utility service providers in Central-Eastern Europe. ANNUAL REPORT 2017 • BUDAPEST WATERWORKS 07 In addition to the drinking water production, drinking- contributing to the protection of the environment and and industrial water supply it also provides sewage fresh water reserves. and wastewater disposal as well as wastewater treat - ment services for its customers in Budapest and a The professional, planning and construction knowl - further twelve municipalities located in the conurba - edge and experience accumulated in the course of tion by relying on its state-of-the-art technological nearly one and a half centuries of operation and the background. Thanks to the domestic and interna - outstanding level of engineering skills provide an ex - tional operational and professional experiences ac - cellent background for technical improvement proj - cumulated over 150 years, and to the technological ects, the most notable of which are the development developments and IT investments implemented in re - of mobile water purification units and investments cent years, Budapest Waterworks is one of the out - implemented using internal resources in the facility standing service providers of the region. and network management and the IT solutions of op - eration management areas. The water utility services are supported by world class technology. Our longer than 5000 km drinking In the Company’s certified and accredited laboratory, water supply network enmesh the city and its ag - we examine almost 180,000 parameters of nearly glomeration. Both the drinking water production and 10,000 organic and inorganic chemical, microbiolog - the associated supply system are fully automated by ical, microscopic biological and toxicological test now. Budapest’s drinking water supply is entirely samples per year. based on bank filtered horizontal filtering and drilled wells. Our Company’s subsidiary, DUNA KÚT Ltd. fills It is of particular value to the decision makers of East - a key role in the construction and maintenance of ern- and Central European and developing nations, these water wells. The 750 drinking water production that in the period elapsed since the political transi - wells enable the company to produce more than 1 tion, Budapest Waterworks has already gone through million cubic metres of drinking water per day. the phases of market, technological, operational and economic development that the other countries con - In recent years, the Company played a significant role cerned are predominantly yet to face. The interna - in the wastewater treatment of the capital city, and tional cooperations serve the realisation of the in the wastewater treatment and sewage disposal of shareholders’ objectives by strengthening alternative, the conurbation area. Budapest Waterworks imple - not directly water sales related revenues, increasing mented multi-billion HUF improvements – thanks to the value of the Company, acquiring professional ex - EU and domestic grants– in the conurbation munici - perience and expanding our know-how with regards pal utilities managed by the Company, thereby also to the core activity. 08 BUDAPEST WATERWORKS • ANNUAL REPORT 2017 Scope of activities In terms of our main activity, Budapest Waterworks is operates the small power plant constructed on the a water utility service provider company. Until 2003 site, which provides approximately 70% of the facil - our Company – contrary to the common practice ity’s energy demand. in Hungary – dealt exclusively with drinking water production and supply. From 2004 onwards the In order to compensate for the freezing and reduction scope of our activities expanded initially through sub - of the water- and sewage disposal service charges sidiaries, then later with the addition of wastewater in 2013 and the trend of ever decreasing water con - and sewage services as well as the operation of sumption, there is a growing emphasis on increasing sewage networks and wastewater treatment plants. the revenues from other sources. In addition to the The Company currently supplies nearly 2 million peo - core activity, customer service also provides an extra ple with healthy drinking water, while also providing revenue source (data service, management activities, sewage and wastewater disposal as well as waste - submeter services). The Company also earns income water treatment services for its customers. by industrial water production, letting out some of its properties such as offices and holiday homes, and Budapest Waterworks has been carrying out waste - performing technical (such as cartography, geodesy), water treatment services directly since 2013. On laboratory (drinking- and bathing water testing) and 1st June 2013 the Company took over the operation of other services. the Central Wastewater Treatment Plant in Budapest, one of Central Europe’s largest and most significant The Company’s international presence has also environmental investments, with a biological waste - increased since 2013. Budapest Waterworks initially water treatment capacity of 350,000 m3/day. The started off with providing consultancy and engineer - environmentally friendly, completely enclosed plant ing services on the international market, has been uses revolutionary new solutions that combine phys - expanding its portfolio with a growing number of ical, chemical, and biological treatment elements. As water purification plant construction- and recon - a result of the takeover, Budapest Waterworks also struction projects in recent years. CORE ACTIVITY Drinking water Network Drinking water Sewage Wastewater production operation supply disposal treatment OTHER ACTIVITIES Customer Property Technical Laboratory International service letting activities services activities ANNUAL REPORT 2017 • BUDAPEST WATERWORKS 09 Service area Drinking water production Kisoroszi Drinking water network Dunabogdány Wastewater network Wastewater treatment plant Pócsmegyer Szigetmonostor Pest megye Budapest Budakeszi Biatorbágy Budaörs Halásztelek Szigetszentmiklós Százhalombatta Tököl Act CCIX of 2011 (Vksztv.) which laid new foundations As a result of the changes, the Company now directly for water utility services resulted in significant operates a water supply pipe network of 5900 km changes for the Company’s activity and service long, where the drinking water pipe system is longer areas. In the course of 2013, our scope of activities in than 5300 km, the industrial water pipe system is 45 both the drinking water- and wastewater treatment km and the wastewater network pipe system is nearly fields was further expanded by taking over the water 590 km long. Additionally, Budapest Waterworks also utility supply services of several settlements. operates seven wastewater treatment plants. 10 BUDAPEST WATERWORKS • ANNUAL REPORT 2017 Ø Key figures C construction, reconstruction • Mobile water treatment plant installation Technological developments years 149 Significant of operating water utility International Excellent water experience service provider 19 professional quality by in Budapest in Central Europe Patents experience European standards Drinking water Wastewater C à à 3 5400 km water network 90 million m /year treated wastewater à 3 à 3 2 166 million m /year production 370 000 m daily capacity à 3 à 1 million m daily capacity 586 km wastewater network à à 766 wells 7 treatment plants à 2 treatment plants 166 million m3 16,3% annual water production non-revenue water 1868 1904 1911 1945 1963 1997 2 2 Foundation Construction Construction Continuous Construction of Privatization of the Káposz- of the Margaret water supply the first horizontal tásmegyer Island water tower, in Budapest well on Margaret waterworks the symbol of our during WW II Island Company ANNUAL REPORT 2017 • BUDAPEST WATERWORKS 11 Ø MOST IMPORTANT COMPETENCIES Management processes Construction activity Engineering activity • Work Force Management • Water treatment plant • Pressure management • Operational center development construction, reconstruction • Water loss analysis • SCADA system integration • Mobile water treatment • Water quality projects • Contact Center plant installation • Non-revenue water CORPORATE DEVELOPMENT, [ MODERNIZATION ] W Customers Revenues à 2 000 000 supplied population AL REVEN billion HUF à T U 24,7 1730 employees TO E à drinking water 45 8,3 billion HUF à billion HUF wastewater 12 billion HUF à export /other 1 1 2004 2012 2013 Residential water fee 2017 3 Appearance of Repurchase BKSZTT HUF/m +VAT the wastewater take over 172.4 in Budapest sector 12 BUDAPEST WATERWORKS • ANNUAL REPORT 2017 Owners Budapest Waterworks operates as a public limited expansion meant that the municipalities responsible company. After repurchasing the minority share for the service in the area also became shareholders, package from foreign investors in 2012 and thus thus by the end of 2015 the circle of owner munici - changing the ownership structure of the Company, palities increased to thirteen. There were no further it is now wholly owned by Municipalities. changes in 2017. As a result of Act CCIX of 2011 (on water public utility The main shareholder of the service), the changes in the Company’s activity and service
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