China Water to set up JV for water projects in Chinese provinces

Municipal water and sewage treatment provider China Water Affairs Group will form a joint venture (JV) through one of its business units, Jianghe Water Affairs, for water-related investments and construction in China.

China Water revealed that it will hold a 45% stake in the JV, with Jianghe Water investing CNY135m ($21.2m), reports Bloomberg.

Henan Water Resources, Construction Investment Company and Huanghe Water Affairs will be the other partners in the venture.

The firm claimed that the water business in Henan and its adjacent areas has a booming potential owing to the water resources infrastructures in the Yellow River basin, as well as the South to North Water Diversion project currently under construction.

For the fiscal year ended 31 March 2012, China Water declared a net profit of 11% with gross revenue touching HKD1.9bn ($245m).

The water supply and sewage treatment services are a major contributor to its revenues and totaled HKD1.63bn ($210.2m) for the 2011-12 fiscal year.

The company’s business interests include urban water supply, water supply systems management and related value-added businesses.

An expansion plan is currently underway in the group, with operations being extended to over 20 cities in various provinces including Guangdong, Jiangxi, Henan and Jiangsu.