1. This Directive shall not apply to concessions awarded to:

(a) provide or operate fixed networks intended to provide a service to the public in connection with the production, transport or distribution of drinking water;

(b) supply drinking water to such networks.

2. This Directive shall also not apply to concessions with one, or both of the following subject-matters when they are connected with an activity referred to in paragraph 1:

(a) hydraulic engineering projects, irrigation or land drainage, provided that the volume of water to be used for the supply of drinking water represents more than 20 % of the total volume of water made available by such projects or irrigation or drainage installations; or

(b) the disposal or treatment of sewage.