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      June 2004,  Asia Water Technology Ltd. (the “Company”) invests in a BOT water treatment project in Hanxi, Hubei Province, the People’s Republic of China, with a contract value of approximately RMB193 million.

 

      Hanxi is located in the west of Hankou within the Hubei Province. This water treatment plant is expected to serve an area of 54.67 square kilometers and an estimated population of 600,000, as well as treat up to 400,000 tonnes of water daily to the city government.

 

       Asia Water Technology Ltd and other three investors will incorporate a project company, Wuhan Hanxi Wastewater Treatment Co.,Ltd., which will be responsible for build, operation and transfer of this wastewater treatment plant. Wuhan Hanxi Wastewater Treatmnet Co. Ltd. is licensed to operate the wastewater plant for an aggregate of 25 years, after which the operation of the plant will be transferred to the Wuhan City Government.

 

      This municipal wastewater treatment plant, together with other wastewater treatment plant in Longwangzui, Shahu, Sanjintan, and Huanjiahu in Wuhan, will enable Wuhan City to self-contain its wastewater treatment capacity at a threshold of 60% by 2006.