PRC: CHENGDU GENERALE DES EAUX-MARUBENI WATERWORKS COMPANY LIMITED

The objectives of the Project are as follows: (i) Assist CMG to augment the available water supply in the city of Chengdu and meet the projected increase in water requirements; (ii) Catalyze private sector participation in the water supply sector; (iii) As the first official BOT water supply project in the PRC awarded on the basis of competitive bidding, the Project would be used as a model by the Government in the selection and documentation of other BOT projects in the sector; (iv) Enable CWGC to obtain the lowest tariff through use of competitive bidding to award the concession to the Project; and (v) Mobilize financial support from commercial parties at a time when Asia faced economic uncertainty following the financial crisis of 1997. Moreover, the presence of ADB would reassure commercial parties of the continued support of both the national and municipal governments to the Project throughout the concession period.