The Asian Development Bank (ADB) said on Thursday it will join three Singaporean firms in investing in a new company that helps China develop water projects.

The ADB will invest US$4 million in the newly-established Asia Infrastructure Project Development Company (AIPC), taking a 40 percent stake, said the ADB's China office.

The AIPC will provide feasibility assessments, planning, design and other services for water supply, sanitation and sewage treatment projects by Chinese local governments.

The other investors included United Engineers Singapore Pte Ltd, Konzen Environment Pte Ltd and Crest Spring Pte Ltd.

The company offers resources and expertise to the whole process of drawing up and completing projects jointly funded by government finance and private capital, said Seethapathy Chander, deputy director general of ADB's Private Sector Operations Department.

China has highlighted tackling water pollution and scarcity, setting a target of extending tap water supply coverage to 95 percent of the population and waste water treatment to 70 percent by 2010.

That demanded about $140 billion of new investment in water plants, sewage treatment and recycling facilities, which required the involvement of the private sector, according to ADB's study.

The Manila-based ADB has provided China with loans totaling $2.5 billion for municipal infrastructure and environment-improving projects since 1992.

(Xinhua News Agency April 21, 2008)