Tianjin Lingzhuang Water Treatment Plant

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In July of 1997, Compagnie Generale des Eaux (CGE) of France (later renamed Vivendi and later to Veolia Environnement as of May 2003) was awarded a 20-year contract to rehabilitate and operate five existing water treatment plants in the Lingzhuang district of Tianjin City. The plants had a 500,000 cubic meters per day capacity and served 1/3 of the 10 million residents of Tianjin. The contract also involved construction of a new 13km long, 2200mm diameter raw water pipeline (to replace an older one) and the introduction of advanced technology to improve various chemical treatment process, set up central computer control, and refurbishment of civil works within the treatment facilities. To implement the contract, CGE Tianjin Waterworks was created as the project company which was owned by CGE (55%) and the local state-owned Tianjin Waterworks Company (TWCC) (45%). CGE Tianjin Waterworks planned to invest US$30 million in the project. Investment by Vivendi was in cash (US$20 million), and debt financing of RMB 46 million. TWWC was to buy water from the JV. "With US$30 million in investment, Veolia Water helped modernize the Lingzhuang water treatment plant. The firm also pledged to operate the facility for 20 years. The plant can treat up to 500,000 cubic metres per day. It serves 4 million people." None