Veolia CEO says won $1 bln Iraqi water deal

BAGHDAD, July 2 (Reuters) - Veolia (VIE.PA) won a deal worth more than $1 billion with Iraq to repair eastern Baghdad's water supply system, but the contract has yet to be finalised, the head of the French utility told Reuters on Thursday.

Asked whether Veolia had won the deal, announced last September by the Iraqi government, which at the time did not identify the company, Veolia Chief Executive Henri Proglio said: "Yes. The contract has not been finalised yet ... the Mayor of Baghdad has shown his interest."

Proglio spoke to Reuters said on the sidelines of French Prime Minister Francois Fillon's visit to Iraq with a delegation of French businessmen.

Veolia and French rival Suez Environnement (SEVI.PA), the world's No.1 and No.2 water groups, were seen vying for the deal.

Baghdad's water infrastructure desperately needs modernising after decades of war and U.N. economic sanctions prevented investment and repairs. Some parts of Baghdad, especially newer areas in the eastern Rusafa district, have just a trickle of water for a few hours a day.

Iraq's government is now flush with cash from oil exports, but it has so far been slow to invest in major infrastructure projects because of security issues. (Reporting by Julien Ponthus in Baghdad, Writing by Marie Maitre in Paris; Editing by Jon Loades-Carter)