By Tom Daly
French water group Veolia Environment has set up a joint venture with Teda Investment Holding Company in the large port city of Tianjin in northern China.
French water group Veolia Environment has set up a joint venture with Teda Investment Holding Company in the large port city of Tianjin in northern China. This brings the number of joint projects the group has undertaken in the country to 22.
The latest joint venture, to be known as Tianjin Teda Veolia Water Co. Ltd., will specialise in the integration of water processing systems, urban sewage disposal, industrial wastewater treatment and desalination. Veolia will have a 49% stake in the joint venture, with state-owned Teda retaining a 51% majority share.
Veolia said its Asian business currently accounted for less than 2% of its global activities, but that figure is expected to increase to 10-20% in future.
Veolia already operates water projects in cities such as Beijing, Shanghai and Tianjin. Under its management, a renovated Tianjin-based water plant is providing drinking water to a population of around 1.8 million.
According to Qiu Baoxing, deputy minister of construction, China planned to invest approximately US $130 billion in the water market from 2006-2010. Investment in the construction of sewage disposal and water recycling facilities is expected to increase by more than US $43 billion in this time.