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First joint-venture waterworks formed in Pudong

More than 1.7 million residents in Pudong District will now be using tap water supplied by China's first joint-venture water company, Shanghai Pudong-Vivendi Water Co. Ltd., which was launched yesterday after Generale des Eaux of France bought a 50-percent stake in the state-owned Shanghai Municipal Pudong Waterworks Co. Ltd., one of four local waterworks.

Generale des Eaux - which belongs to Vivendi Environment, a global water management giant - thus became the first foreign company to gain access to the whole waterworks sector on China's mainland, including water-treatment, distribution and marketing, city water officials said at yesterday's ceremony.

According to a contract signed in late May, Generale paid US$240 million for the stake.

"Because it's a long-term contract, lasting 50 years, we are confident of getting back our investment," Migues explained.

"We will focus more on improvement of water quality, network management, as well as customer services," said Gustavo Migues, the general manager of the new joint venture, who is also one of six members on the company's board of directors.

Migues revealed that a general plan has been marked down to improve water-production technology in the near future.

Pudong residents needn't worry about any change in water fees as officials pledged the new ownership won't affect prices.

The Shanghai Water Authority and the Shanghai Price Bureau will continue to publish a unified rate for water. Currently, the price is 1.03 yuan per cubic meter for residents and double or even higher for industrial users.

"We expect foreign investment and expertise to upgrade the urban water-distribution system and to improve our water services," said Chi Jianguo, chairman of the Shanghai Water Assets Operation and Development.

The Pudong-Vivendi waterworks now has 1,700 kilometers of underground water-distribution pipeline in Pudong, and is capable of producing 1.27 million cubic meters of water every day.

( eastday.com August 31, 2002)