Xi Lang Wastewater

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In December 2001, Tyco International Limited of the U.S. was awarded a 20-year contact to design, build, finance and operate a wastewater treatment plant in Xi Lang, Guangzhou. The first phase of the project was to enable processing of 200,000 cubic meters of wastewater per day, enough to provide service to most of the Fang Cun area, one of the ten districts of Guangzhou. The second phase was expected to increase total treatment capacity to 400,000 cubic meters per day. Guangzhou had 5 million residents and was a major international trade city in southern China. To implement the contract, the Guangzhou Xilang Wastewater Treatment Company was created as the project company, a joint venture between Earth Tech, a wholly owned subsidiary of Tyco International, and the state-owned Guangzhou Tunnel Development Company (exact shares in the project company were undisclosed). The project was estimated to cost some US$120 million. The financing was to be provided by Earth Tech. Construction of the project started in December of 2001, and consisted of two phases. The first phase was completed in 14 months, ahead of schedule. The second phase was expected to be completed by the end of 2005. None None