Jingzhou City Water Treatment Plant

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In August 2006, China Water Affairs Group Ltd signed a 25-year concession with the Construction Committee of Jingzhou City to maintain and operate a sewage treatment in Jingzhou City, Hubei Province, China. The plant capacity was not disclosed. Hong Kong-based China Water Affairs Group held 51% of the project company; the remainder was held by Construction Committee of Jingzhou City, Hubei Province. The project achieved financial closure when China Water Affairs Group issued convertible bonds and took out bank loans in September 2006. The total project cost was estimated at HK$ 126million (US$ 16.2million). China Water Affairs Group expected to recoup its investment by selling water at an average tariff of RMB 0.70 (US$ 0.09) per cubic meter. The project was under construction as of February 2007.