On the "2008 Strategic Forum on Urban Water Sector" held on April 8, Kun Liu, Director & GM of General Consulting Co., Ltd. said China Environment Industrial Investment Fund (the Environment Fund) will be mainly initiated by General Technology (Group) Holdings, and five other companies also participated.

China urban water industry garnered about RMB500B investment in the past fifteen years, driving the rapid increase of service coverage rate for 661 urban water supply and drain system. Tao Fu, one of the participants of Inspection Means of Urban Water Supply Pricing Cost and Director of Tsinghua University Water Industry Policy Research Center, said, the industrial investment funds may be an important model for urban water industry in the current financing environment.

The Environment Fund was co-initiated by General Technology (Group) Holdings and China Environment Service Industry Association. Sources say RMB30B Huayu Water Industry Investment Fund and RMB20B Environment Fund have entered the approval stage. They are expected to raise funds within 2008. The project selection library of the environment fund has been constructing. So far, over 180 projects have been included for screening.