• Tue
  • Jul 29, 2014
  • Updated: 3:46am

New World, Suez win Lianjiang water deal

PUBLISHED : Thursday, 10 July, 1997, 12:00am
UPDATED : Thursday, 10 July, 1997, 12:00am

New World Development and its European partner, Suez Lyonnaise des Eaux, have won a 30-year build-operate-transfer concession to build a 125 million yuan (about HK$115 million) water treatment plant in Lianjiang, Guangdong.


The franchise, signed between Sino-French Water Development and Lianjiang Water Supply, is the fifth to be awarded to the New World-Suez group in China.


The firm has similar concessions in Tanzhou, Guangdong; Nanchang, Jiangzi; Shenyang, Liaoning; and Chongqing, Sichuan.


Jerome Monod, chairman of the Suez Lyonnaise des Eaux supervisory board, said he was delighted with the new contract and hoped it would pave the way for further projects with New World.


The company looked forward to a 'long and fruitful relationship' with China, where it hoped to further strengthen its presence.


The new plant, with a production capacity of 100,000 cubic metres of water a day, will be built by Degremont, a group subsidiary.


Construction will take 18 months and will include raw and treated water distribution pipelines.


As part of the concession, the company will operate the existing water treatment works while the new plant is being built.


Consumers will be charged water rates that will be set under the terms of the contract.


Sino-French Water Development said the rates would be comparable to those in nearby Zhanjiang.


Lianjiang, with 1.3 million people, is in southwest Guangdong, opposite Hainan Island.


The city is expected to grow dramatically, as an industrial zone, set up in 1992, starts to expand.


The area is already home to sugar refining, beverage production, cement, porcelain and textiles industries.


The new facility is intended to meet Lianjiang's demand for drinking water for the next 10 years.


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