Kunming CGE Water Supply Co., Ltd (Kunming CGE) was established in May 2006 as a result of an international bid organized by Kunming Municipality to designate an international private water operator that would acquire 49% shares in the newly formed joint venture company (JVC) while the municipal authorities would retain the remaining 51% of the shares.
The contract was awarded to the consortium of Veolia Water-Compagnie Generale des Eaux (VE-CGE), the world leader in the provision of water and wastewater services, its Hong Kong partner CITIC Pacific Ltd. and Ping An Insurance (Group) company of China, Ltd. to jointly run for 30 years. Kunming Water Supply Group (KWSG) formerly the municipal entity in charge of operation, management and development of the drinking water services of Kunming has transformed and reformed its structure and part of its state–owned assets to enable the creation of the JVC.
All the existing staff of 1,145 employees has been successfully transferred to the new JVC. Together with the international experience of VE-CGE and its partners, Kunming CGE has the foundations and elements from which to embrace its next stage of development and integrate an advanced operation and management system in fully integrated services of water production, distribution and customer services. Currently, the company covers the integrated water operation of 10 water treatment plants for total production capacity of 1,555,000m3/day, the distribution of treated water through 1,500km of pipes, customer services and water billing. Its two main objectives are to supply high-quality drinking water and to provide convenient and enhanced customer services to the fast developing city of Kunming, serving 2.1 million inhabitants.