Malaysia water utility Puncak Niaga acquires China water projects

KUALA LUMPUR, Malaysia (AP), May 22, 2008 – Malaysian water utility Puncak Niaga Holdings said it has agreed to buy seven water and wastewater treatment projects in China for 29 million ringgit (US$9 million; 5.7 million) as part of its regional expansion. The projects will be transferred to a joint venture company being formed in Singapore, Sino Water Pte. Ltd., which will then invest up to 250 million ringgit (US$78 million; 50 million) to build and operate the projects, Puncak said in a statement. Puncak will hold 80 percent interest in Sino Water, with the rest held by Singapore water services firm, Environmental Holdings Pte. Ltd., it said. "Puncak intends to leverage on its expertise and experience in Malaysia to tap the vast opportunities and growth potential offered by the China market," Puncak said. The China projects, located in the provinces of Hebei, Henan, Shandong, Guangdong and Hainan, have concessions of up to 30 years each and will have a combined capacity of up to 750 million litters a day when completed within 5 years, it said. The projects are expected to generate revenue of up to 100 million ringgit (US$31 million; 20 million) a year, it said. Sino Water, which will be Puncak's vehicle to expand in China, will be seeking other water projects to add to its portfolio, it added.