From Local to Global: The Birth of Water Multinationals

The expertise developed transforming French cities soon found international markets. The Compagnie Générale des Eaux, founded in 1853 (later becoming Vivendi and then Veolia), began by obtaining the water concession for Lyon. Its innovation lay in the concession model itself—private companies operating public infrastructure under long-term contracts. This approach balanced public ownership with private efficiency.

The company's expansion followed French imperial influence but transcended it. By 1880, Générale des Eaux operated in Venice, Constantinople, and Nantes. Each city required different solutions: Venice needed cisterns for rainwater collection, Constantinople required elevation pumping, Nantes demanded river treatment. This adaptability—applying core expertise to local conditions—became the French water industry's signature.

Lyonnaise des Eaux (later Suez), founded in 1880, took a different path. Beyond water distribution, it pioneered wastewater treatment. The biological treatment plant at Achères, serving Paris from 1940, became the world's largest. Processing 2.5 million cubic meters daily, it transformed sewage into agricultural fertilizer. This circular economy approach—treating waste as resource—anticipated modern sustainability thinking by decades.

The merger of infrastructure expertise with financial innovation proved crucial. French water companies pioneered project finance, enabling cities to modernize infrastructure without upfront capital. They developed performance contracts guaranteeing service levels. These financial innovations mattered as much as technical ones, making modern water systems accessible to cities worldwide.