Qingdao Water

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In August of 2002, Sino-French Holdings was awarded a 25-year concession contract providing for the operation, enhancement and maintenance of two existing drinking water treatment plants with a total capacity of 540,000 cubic meters per day in Qingdao, Shandong Province. Sino-French was to produce and supply nearly 90% of the water supplied in the inner city, covering 2.3 million inhabitants out of a total urban population of 7 million. To implement the contract, Qindao Sino French Hairun Water Supply Company Ltd was created as the project company in which Sino-French took a 50% stake, with the state-owned local water supply company, Qingdao Tap Water Corp. Ltd., retaining the other half. Sino-French, in turn, was a 50-50 joint venture between Suez water subsidiary Ondeo and New World Infrastructure of Hong Kong. Total investment was 125 million yuan(US$15.1 million). Operations began in August 2002. In October of 2004, Sino-French Holdings was awarded a second, separate, BOT contract for an additional 180,000 cubic meters per day capacity water treatment plant in Qingdao city. None None