China’s state-owned corporate giant, China Gezhouba Group (CGGC) is making a splash in the international water industry by acquiring Brazilian water concessionaire Sistema Productor de Água São Lourenço for US$147 million.
Sistema Productor has a 25-year concession for a 410,000m³/d water treatment facility and a 32km raw water intake and distribution network for approximate 1.5 million people in the São Paolo state with works coming up in 2018. CGGC has reported that the total investment is estimated to be around BRL2.84 billion (US$907 million).
On top of acquiring the concessionaire from Brazilian owners Camargo Corrêa and Andrade Gutierrez, CGGC will also be injecting fresh capital into the company.
While the CGGC’s international water business has been historically been confined to construction and engineering projects notably in Kenya and Equatorial Guinea, in China, the conglomerate has ventured into water asset ownership; the organisation has bought over Kardan Water’s 630,000m³/d project.
Source: Global Water Intelligence