Water is one of the most important commodities of all. The supply of tap water is crucial to survival. In Germany, the supply of water is closely linked to individual municipalities and has traditionally been oriented towards the requirements of the public good. The development, modernisation and liberalisation of the water industry currently forms the subject of numerous debates among politicians and the business community.

The German water industry, including the MVV Energie Group, views the forms of liberalisation currently under discussion with some reservations. It considers such approaches to harbour risks for the quality, safety and sustainability of the complex system of the water industry.

The MVV Energie Group is a competent partner in the water business and also has related activities in its international consulting and value-added services business. Our MVV Consulting GmbH shareholding was commissioned in December 2003 with the implementation of a socially, technical and economically feasible water supply and wastewater disposal system for the town of Botosani in Rumania. This project will last for two and a half years.

In cooperation with Stadtwerke Ingolstadt, we compiled a feasibility study in the Serbian town of Kragujevac during the year under report, which was financed by the Water Technology Transfer Project of the State of Bavaria. The focal point of this study was a technical analysis of the town's tap water purification and wastewater system. Furthermore, we also compiled a business analysis of the water company.