ABSTRACT

This chapter talks about Suez and Union Fenosa base of the pyramid (BoP) projects. It analyses the implications of the two firms' BoP business models: their consequences for poverty reduction; their impacts on the environment; and their business goals. The chapter describes how the projects have catalysed development for the BoP clients. The business model of Energia Social is based on community self-management of billing and collection services. The new approach differed from the traditional utilities' business model by doing away with the notion of individual billing. Business opportunities associated with low-income populations are becoming increasingly appealing. Union Fenosa and Suez have made choices in accordance with their business strategies, and these choices have had consequences both for the business and for the development and sustainability of poor BoP communities. Suez Environment's BoP project in Manaus, Brazil, was based on a global initiative to provide water and sanitation services to underserved populations in developing countries where the company operates.