Generale Des Eaux, a subsidiary of Vivendi Environment, purchased half of the shares of the Shanghai Tap-Water Company based in the Pudong New District, forming the joint venture firm Shanghai Pudong-Vivendi Water.

China is accelerating the opening up of public utilities, whichused to be under firm control of the state, to fulfill its commitments to the World Trade Organization (WTO).

The venture took the lead in China in opening all water-relatedbusinesses, like water production, supply through networks, and customer management, to foreign investors.

A senior French executive said that the venture would focus on improving water quality and management through technological reconstruction and setting up a customer service center.

The expected large investment would not result in water price appreciation, said the spokesman, stressing that they would chargein strict conformity with the local rules.

The joint venture, with a 1,700-kilometer water transportation network, is able to supply 1.27 million cubic meters of water daily.

(Xinhua News Agency August 31, 2002)