Yueyang Kai Yuan Water Supply Company Limited

Cancelled

In May of 1998, Cheung Kong Infrastructure (CKI) of Hong Kong was awarded an 18-year concession contract for operating and upgrading two water treatment plants in Yueyang City, Hunan Province. Each water plant had a water processing capacity of 200,000 tons per day for a total processing capacity of 400,000 tons per day. One of the plants began operating in 1988 while the other facility commenced in 1994. Yueyang was one of Hunan's largest cities, with a population of about 5 million. To implement that contract, the Yueyang Kai Yuan Water Supply Company was created as the project company which was owned by CKI (49%) and the state-owned Yueyang Running Water Corporation (51%). CKI paid RMB 73.5 million (US$8.9 million) for the 49% stake. The total project cost was US$18 million. In August of 2003, CKI sold its interest in the Yueyang Water Plants back to the local government for a capital gain of HK$11 million. None None