November 27, 2007 -- On November 26, 2007, Gerard Mestrallet, Chairman and CEO of Suez Group signed two strategic partnerships relating to sustainable development in two major Chinese cities, Chongqing and Tianjin. The signing was timed to coincide with the first official visit to China by Nicolas Sarkozy.

In Chongqing, Suez will increase the capacity of its waste water management system in Tangjiatuo from 300,000 cubic meters to 450,000 square meters a day. A sewage sludge drying facility, also in Tangjiatuo, using French technology will be managed by Suez.

In Tianjin, Suez will be a strategic partner in the development of the city's Binhai New Area. The company will provide a master plan that will outline the management of the development zone's water, sanitation, waste and energy services.

"The historic ties of Suez with China go back more than a century and have developed in the environment sector over time with the formation of solid partnerships, scientific cooperation, and impressive technological platforms. These ties offer us good potential opportunities in the energy sector, particularly in energy services which contribute to energy efficiency and combating climate change, and hence to assisting China's efforts in favor of the environment," said Gerard Mestrallet, Chairman and CEO of Suez, in a statement.

"Binhai New Area of Tianjin is a pilot zone for reform in China," Kai Zhang, assessment officer at Tianjin Xingchi Real Estate Appraisal Co, Ltd., told Emerging China. He says that the development will see major economic growth.

"But Tianjin lacks energy and national resources, like water. Suez's decision to supply the water treatment as well as energy services to the development zone will make sustainable development possible in these areas. For instance, the real estate price in these areas, will increase since improvements in the environment improve the quality of life in the area," said Zhang.

According to Zhang, Chongqing as another national autonomous municipality located at Three Gorges Reservoir Area, the upper reaches of the Yangtze River, takes the responsibility of the water pollution prevention program of the Three Gorges Reservoir Area. The waste water management and sewage sludge drying facility invested in Tangjiatou will benefit both Chongqing's sustainable growth and Tianjin's residential environment, because of China's north to south water transfer project.

"Many cities in China have become places with limited water resources with continuously severe pollution problems due to their booming economic growth. And by providing good technologies that help with energy-saving and environmental protection, the residents from these area will have a better quality environment. These two autonomous municipalities will acquire a better investment environment for oversea firms. In this way, the cooperation between the two-parties should be win-win." Youwei Zhang, owner of Shanghai Aoli Environmental Project Co, Ltd., told Emerging China

Jingpin E, Vice-Minister of China's Water Resources, said in a press conference that water pollution has become more serious, but China is trying to develop a safe water society by strengthening the legislation relating to managing water resources. In this case, both local and central government should directly invest in improving and strengthening the management of China's water resources. He said that the strategic partnerships between Suez and the two cities, Chongqing and Tianjin, is a good case in point, because these areas are located near provincial or river basins.