Lv Liang City Water Reservoir and Piping Network

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In October 2006, Asia Water Technology signed a build, own, operate (BOO) contract to construct a water supply and distribution facility in Lv Liang City, Shanxi Province, China. The project consisted of four water reservoirs of 10,000 cubic meters capacity each for a total of 40,000 cubic meters of water, and 60km of piping to supply Lv Liang City with 20 million cubic meters of water annually. Asia Water Technology was a Singapore-based and -listed company. It established Lv Liang Xinya Water Services Co. Ltd., the project company, with its wholly-owned Chinese subsidiary, Wuhan Kaidi Water Services Company. Asia Water was the sole owner and operator of the entire project, though 40.82% of the project was owned through Wuhan Kaidi Water; the remaining 59.18% was owned directly by Asia Water. Asia Water expected to invest RMB 256million (US$ 32.1million) in the project and expected to recoup its investment by charging a fee to use the water reservoir and piping network. The project was funded internally. The project was under construction as of February 2007.