Sanya Sino-French Water Development

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In May 2001, Sino-French Water Development signed a 30-year concession contract with the city of Sanya for the provision of potable water to 300,000 residents of Sanya, Hainan province. The agreement included the acquisition of three water production facilities which had a combined capacity of 230,000 cubic meters per day as well as the operation and management of the entire distribution network for the duration of the contract. To implement the contract, Sanya Sino-French Water Development Co. was created as the project company which was owned by Sino-French Holdings (50%) and the state-owned Hainan Tianya Water Industry Holding Co. (50%). Sino-French, in turn, was a 50-50 joint venture between Suez water subsidiary Ondeo and New World Infrastructure of Honk Kong. The total investment in the project was estimated at 36 million euros (about US$31.5 million). The concession period did not begin until January 1, 2004, following a delayed financial closure. None None