Wuhan Hanxi Municipal Wastewater Treatment Project

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In June 2004, Asia Water Technology (AWT) of Singapore, together with the three other undisclosed partners, was awarded a license to build and operate a municipal wastewater treatment plant in Hankou city, Hubei Province (called the “Hanxi Project” for short). The term of the contract was undisclosed. To implement the contract, Wuhan Kaidi Water Services Ltd. was created as the project company in which AWT took a 43% shareholding. Upon the completion of construction in December of 2005, the wastewater treatment plant was expected to serve an estimated population of 600,000, as well as treat 400,000 cubic meters of wastewater daily. The aggregate investment by Asia Water Technology was RMB 193 million (US$23.57 million). The financing for the project was raised following AWT's initial public offering (IPO) on the Singapore stock exchange in February 2005.