Zhongshan Dafeng Water Plant

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In January of 1998, Sino-French Holdings (Hong Kong) Ltd. was awarded a 22-year concession contract to own, operate and manage the facilities of Zhongsang Municipal Water Supply Company. The capacity of the plant was 200,000 cubic meters/day and covered Ma Da Feng Wei, Gang Kou Town, and the Zhongshang Municipality, Guangdong Province. To implement the contract, the Zongshang Municipal Dafeng Water Supply Company Ltd. was created as the project company which was owned by Sino-French (66.11%) and the state-owned Zhongshan Municipal Investment Company (33.89%). Sino-French, in turn, was a joint venture company that was owned 50% by Suez water subidiary Ondeo and 50% by New World Infrastructure of Hong Kong. The total project cost was US$29.9 million. The water tariff of the plant was based on an escalation formula, which was indexed to the consumer price index and variations of the exchange rate. Operations began April 1998. None None