Zaija Water (Shenyang No.9)

cancelled

In 1996, China Water Company (CWC) was awarded a 20-year contract to build and operate the 150,000 cubic meters per day capacity Shenyang No.9 water treatment plant in the Zaija district of Shenyang city, Liaoning province. To implement the contract, Shenyang China Water Company Ltd. was created as the project company in which CWC took a 50% stake while the state-owned Shenyang General Water Company held the remainder. In 1998, CWC was owned 1/3 each by Temasek Holdings (The Singapore Government's investment arm), the private Hongkong Land Holdings and AIDC Ltd (an investment company majority-owned by the Australian Federal Government). The total project cost was US$25 million. The project was given a guaranteed rate of return of 18.5% for the second to forth year, 21% for the fifth to 14th year and 11% for the 15th to 20th year. However, in 2002 the Chinese Government ruled that guaranteed rates of return promised to investors for infrastructure projects were illegal and the project was subsequently canceled. None None