RWE Thames Water pulled out of a Shanghai water treatment project after the Shanghai government declared guaranteed rates of return promised on the project illegal, according to US media reports. Thames Water, a unit of Germany-based RWE, originally signed a 20-year contract for water production in Shanghai and spent US$73 million to build a facility with a daily water purification capacity of 104 million gallons, which it starting operating in 1998. Shanghai City Water Treatment North will take over the project from Thames Water, according to the Chinese company's website. The South China Morning Post reported that the mainland company will pay millions of dollars in compensation.
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