Qingdao Wastewater

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In November 2003, a consortium formed by Veolia Water Asia, a subsidiary of Veolia Environnement, and the local private China Everbright International was awarded a 25-year concession contract for the rehabilitation and operation of two wastewater treatment plants in Qingdao city, Shandong province. The contract included work to improve the performance of both plants and to raise the treatment capacity the Maidao plant from 80,000 cubic meters per day to 140,000 cubic meters per day in two years. The combined capacity of the two plants was to be just over 200,000 cubic meters of wastewater per day. Qingdao, a city of 2.3 million people located 700 kilometers southeast of Beijing, was to host the swimming events in the 2008 Olympic Games. To implement the contract, Everbright International, Veolia and the Qingdao government formed a separate joint venture project company, capitalized at US$350,845. Veolia held 78% of that venture, Everbright International 21% and the state-owned Qingdao Drainage Company the remaining 1%. The Veolia-Everbright consortium paid US$9.2 million for their stake in the project and also committed to finance US$27.6 million of additional investment into the wastewater facilities. None None