Chongqing City Water Supply

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In November 2006, China Water Affairs Group Ltd. acquired a water supply project from three Chinese firms to maintain and operate the water supply services for Yongchuan City, Chongqing Muncipality, China. Based on the information available, the contract appears to be a management contract, where the private contracting firm collects water tariffs and carries out maintainance as required, but the ultimate ownership of the assets remains with the government. The agreement requires China Water Affairs Group to supply 50,000 cubic meters daily to the city's 300,000 residents. The project was initially awarded to Yongchuan Global in 2001, which in turn created Chongqing Qiali to maintain the water supply network. In November 2006, Hong Kong-listed China Water Affairs Group purchased Yongchuan Global and Chongqing Qiali for RMB 105.5million (US$ 13.2million), financed internally and through convertible bonds issued in June and July, 2006. This was the second of two projects awarded in the water sector this year by the Chongqing government: in September 2006, Sino-French, a joint venture between SUEZ and New World Infrastructure, was awarded a 30-year management contract to maintain and operate a wastewater treatment plant. The project was operational as of February, 2007. None None