The China Water Company Limited

Water is the source of all life and covers nearly 75% of the earth's surface. However, only 3% of this is fresh water and of this, only 1% can be utilized for human consumption. And water resources are becoming more and more scarce as time goes by – during the 20th century, water use increased at double the rate of population growth – so while the earth's population tripled, water use per person increased sixfold!

As a result of this huge growth in the world's population and economic well-being, water shortages and pollution are problems faced by most countries in the world today. China, with its current drive for economic expansion, is no exception.

It is well know that scarcity and pollution can lead to widespread public health problems, limiting economic and agricultural development and harming a wide range of ecosystems. In extreme cases, this situation has even put global food supplies in jeopardy and led to economic stagnation. Water crises are looming in many cities and the impact of global warming is becoming more and more significant as time passes (for further details please refer to www.worldbank.org).

The China Water Company Limited (CW), through its investment of commercial capital, participates in the development of China's water resources, municipal water supply systems, wastewater treatment facilities and other water-related infrastructure. With these investment projects, CW strives to improve the local quality of life, to provide better conditions for economic growth and to create a framework of sustainable development for generations to come.

CW’s primary aim is to be a long term partner in developing and operating high quality and cost-effective water projects in China. These can range in scope from the development, acquisition and structuring of individual water or sewage treatment plants to participation in total municipal water production and distribution systems. It is CW’s policy to use local expertise, services and equipment wherever they add value to projects. A key CW objective is to enhance and develop the management and operating expertise and skills of its local partners though exposure to the most appropriate international best practice.

CW personnel have extensive experience in the development and operation of water projects in China and are also able to call upon the international water expertise of its major shareholder. This allows CW to consider every project on its own merits and to come up with a truly flexible, practical and cost effective basis for cooperation.
CW uses its professional expertise to conduct a thorough socio-economic appraisal of every project. This helps ensure that all stake holders will benefit from the effective use of international commercial capital, that local development is enhanced and environmental protection guidelines are met.

The management personnel of CW are professionals with expertise in water engineering, environmental engineering, water quality analysis, financial accounting, Chinese and international law and commercial negotiation. China Water has direct experience of the most common commercial and contractual frameworks in use in China (such as BOT, TOT, Concession etc). CW’s managers not only have experience in developing and administering Chinese projects, they are also able to understand the needs of, and fluently communicate with Chinese partners, allowing each project to be smoothly planned and implemented with the specific requirements of the partners included.

CW can also draw upon its international shareholder’s expertise in the technical, financial and project management areas; this enables the company to provide state-of-art technology according to the needs of the projects. During the operational stage, particularly during initial start-up, CW can also provide ongoing technical support, thus making each project run more efficiently and effectively.

CW’s philosophy is to employ a process of continuous improvement in all its operations, combining local Chinese knowledge with that of its international shareholder, Cascal. This enables project companies to deliver enhanced levels of service to customers, improved financial performance for owners and better career opportunities for employees. In addition, the impact of our operations on the local environment is an important priority with constant improvement in discharge standards and byproduct disposal.

CW was established in 1996 by major international investors. Its founding shareholder was AIDC Limited, an investment company majority-owned by the Australia Federal Government.

The current majority shareholder of CW is Cascal, a water service division of Singapore company Sembcorp; Sembcorp believes that Cascal’s experience in the municipal water sector and its international operations are excellent complements to Sembcorp’s expertise in industrial water and wastewater management, water reclamation, as well as large- scale desalination. Together, Sembcorp and Cascal have an enlarged footprint, with water and wastewater facilities in 32 operating locations across 11 countries around the world. Working together Sembcorp and Cascal are well- positioned for growth with the ability to provide total water and wastewater solutions to our customers in both the industrial and municipal sectors.