Hedong Chuangwei Water Co. Ltd.

active

In September of 2005, the city of Urumqi granted a 25-year concession contract for the modernization and operation of the city’s wastewater treatment plant (Urumqi Hedong Sewage Treatment Plant) to a consortium led by Veolia Environnement of France. Urmuqi was the capital city of Xinjiang Uygur Autonmous region, located in North West of China with 1.2 inhabitants in 2005. Hedong Chuanwei Water Company was created as the project company in which Veolia and the state-owned Beijing Capital Group of China owned a combined 51% stake, while the local government owned the remaining 49%. Veolia's exact share was unknown. Urumqi Hedong Sewage Treatment Plant had an installed capacity for treating 100,000 cubic meters per day of sewage water in 2005. As part of the contract, Veolia was expected to double the capacity of the plant in phase two of the project and double it again to 800,000 cubic meters per day by the third phase of the project, in order to keep up with growth in the city’s sewerage needs. The Veolia Consortium was expected to invest US$44.7 million (RMB 370 million) in the plant’s modernization and expansion. Total revenue for Veolia Environment over the duration of the contract was expected to about US$227 million.