WET News

8 WET NEWS APRIL 2015 "We've seen huge change in AMP6, haven't we, with the whole focus on customer outcomes and totex delivery. I saw that as a big challenge..." " We've spent 25 years creating lots of really good assets. The time's now come where we've got to think about making the assets that already exist operate a lot more, optimise them and make them work better." So says John Abraham, who last month became chief operating officer, water at Veolia UK, having been chief operating officer at MWH Constructors Inc and Treatment. Abraham has taken over from CEO Steve Shine at Veolia and is tasked with growing the group's UK water business. No mean feat as Veolia has embarked on 'a realignment' pro- gramme as it implements a new strategy of optimising assets and creating totex outcomes for clients. Design and build is not a part of that strategy. Abraham explains: "I've been 27 years in the design and build arena in water and really looked at the way the industry's changing. We've seen huge change in AMP6 with the whole focus on customer outcomes and totex delivery. I saw that as a big challenge, and personally wanted to move into a wider role within the water industry, not just specifically design and build, but really look at how we can focus on providing better customer service, better optimised assets. I was really excited about how Veolia could play in that shi•." He says it has been a difficult 12 months for Veolia because realigning the strategy has meant moving away from parts of the industry that "we've historically played in". He cites Veolia's involvement in Thames Water alliance eight2O as an example. Abraham says: "Veolia has brought huge value [throughout the early contractor involve- ment phase] but in the delivery phase and the design and build, again it's not quite where we want to be. We want to be in optimisation of assets, creating that totex outcomes for our clients. "Steve [Shine] has done a great job over the last six months We've gone through the opti- mised phase of the strategy, now we're going into the evolution phase. We're evolving now in terms of what that strategy's going to be and then we need to move very quickly into the growth phase. It's standard management stuff, I know, but it really fits in this case. The whole client value proposition is what we're currently focused on, and some great work had already been done before I've arrived." Competitive market Abraham says Veolia has PFI operations in Northern Ireland and Scotland, and it operates a lot of assets for the Ministry of Defence. It has also secured retail activity at Edinburgh Airport, and there is more of this type of of work in the pipeline. "There's already growth appearing. What we're not doing is we're not building design and build opportunities, which I think is a fairly competitive market anyway. There's a lot of great companies in there – I've just come from one. That's what we're not doing." Veolia is also undertaking strategic consul- tancy plays where it is forming relationships. It has teamed up with partners Mouchel and Grontmij, for instance, for a consultancy framework they are bidding for in Scotland. Abraham says this is very much building on Veolia's footprint within Scotland and being able to provide a service directly to Scottish Water that supports its overall strategy of operating and maintaining assets. Focused approach By the end of its current financial year, Veolia will need to see some significant growth in the UK operations, says Abraham. "And the really cool thing is it's not about just growth in the water side. One of our USPs [unique selling points] is that we can bring a combined water, energy and waste offering where all of those environmentally-related are wrapped up together. We can give a wrapped up, very efficient and focused approach with the operational experi- ence that we have of operating assets globally." Abraham is working with his fellow COOs on the municipal waste and industrial services side to bring that kind of combined approach to reality. He would like to see some of those combined offerings coming together before the year-end. While he is fully aware that there are companies out there who have have models on how to optimise assets, Abraham believes Veolia has the edge because "we do it on a worldwide scale second to none. Part of my role is going to be to make we pool that knowledge globally. It's using the technology that we have, some of the tools and the ideas". For instance, Veolia, together with IBM, has developed a data-driven smart solution that will transform water, energy and waste management services in urban areas. "There's lots of these various things that we're doing already that I think the market is ready now to start. We've got to figure out a lot of the commercial models with our clients but what we're very sure about is we're not in it for capital. We're in it for optimisa- tion of totex solutions." He says Veolia expects to make a return from the savings that it creates. "We're all about providing profitability to our shareholders from value that we've added and savings that we've created. I think Veolia is pretty unique in that because we're in it for the long-term. We're not in it to fill our boots for the next few years. It's got to be a long-term, sustainable, value-added business. Abraham says: "I'm joining the group at a really great time where it's back on its hind legs again." John Abraham Chief operating officer – water, Veolia UK WhaT you didN'T kNoW! It's not good for my image but I like... I'm very much a hands-on dad I drive... I haven't got a car at the moment I'm currently reading... The First 90 Days, by Michael D Watkins My greatest weakness is... Not being fit My favourite TV programme is... Game of Thrones – I've just finished Series 4 INTERVIEW

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