IN BRIEF – ASIA

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* Ion Exchange India announced on 30 June it is to establish a new subsidiary in Bangladesh with Rs2.5 million ($54,000) of equity.

Under the name Ion Exchange Environment Management (BD) Ltd, the company will continue its focus on water and wastewater treatment solutions.

* China Water Affairs Group (CWAG) is to raise up to $300 million from a five-year convertible bond issue. The issue is CWAG’s third major fundraising in 5 months, following a recent $175 million share placement. The funds should enable CWAG opportunities to capitalise on the ongoing deregulation of Chinese utilities. Since March, CWAG has signed preliminary agreements to develop seven water projects in the Chinese provinces of Gansu, Guangdong, Hainan, Henan, Hubei, Yunnan and Zhejiang.

* Interchina Holdings is to pull out of its wastewater project in Xianyang. In 2003, the Hong Kong-based company committed itself to investing RMB200 million ($24 million) in a water treatment plant in the city in Shaanxi province on the basis of a 30-year BOOT arrangement, with the possibility of a 20-year extension. However, an inability to reach agreement on a wastewater tariff has led to the termination of the contract with the city’s government. So far Interchina has invested RMB2.5 million ($313,054) in relation to the project.

* ADB (Asian Development Bank) is to loan $100 million to encourage better water resources management in China’s Wuhan City. The project comprises nine areas covering municipal wastewater management, stormwater management and the development of utilities. ADB principal financial specialist, Sangay Penjor, stated: “The project will provide the 10% additional capacity critical to achieving the city’s target of 80% treatment of the wastewater generated by 2010.” Despite abundant water resources, 56% of the rivers and 89% of the lakes in the city are polluted.

* Syabas, the concessionaire for Kuala Lumpur, Selangor and Putrajaya, stated it is to spend approximately RM110 billion ($30.1 billion) during its 30-year water concession for Kuala Lumpur, Selangor and Putrajaya, with RM10.7 billion ($2.2 billion) to be allocated for capital expenditure.