Aqualia Bengbu Wastewater

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In August of 2005, Fomento de Construcciones y Contratas SA (FCC) of Spain, through its water subsidiary Aqualia, was awarded a 25-year concession contract to rehabilitate, build and operate wastewater treatment plants in Bengbu, Anhui province. Under the contract, a population of 2,000,000 inhabitants was to be served. To implement the contract, a 50-50% joint venture project company was formed between Aqualia and the local state-owned BCCA. The JV was to be responsible for: Managing the wastewater treatment plant no.1 in Bengbu with a capacity of 100,000 cubic meters per day; building and managing an enlargement to the plant which was to bring its capacity to a total of 200,000 cubic meters per day; designing, building and managing the two phases of the Yantaizi Plant (Bengbu No2) with a final capacity of 200,000 cubic meters per day. Investment in the project was expected to total euro 49 million (US$60.6 million) and Aqualia expected to earn revenues totalling euro 500 million over the life of the contract. Work was to begin early in 2006.