Vivendi Environment, the world’s largest water company, is to buy half of a Shanghai water treatment plant for US$239m from the city government. Under the deal,Vivendi will take a 50 per cent stake in Shanghai Municipal Water Works Pudong Co, which supplies water to 1.7m users in the city’s Pudong district. The joint venture will provide water services for 50 years.
The contract, secured in competition with Thames Water and Suez, is Vivendi’s third water-treatment investment in China. It already purifies and distributes water in Chengdu and Tianjin. Henri Proglio, Vivendi Environment’s chief executive, said the ability to market directly to homes and businesses marked a new stage in the reform of China’s water market.
Meanwhile, Suez announced two China water deals of its own in May. Its Onedo subsidiary secured a 25-year contract to supply drinking water to the residents of Qingdao, Shandong province, and it also won a deal to rebuild two Shanghai treatment plants.