(Yicai Global) June 4 -- A unit of Gezhouba Group, the operator of China's Three Gorges Dam, the world's largest hydroelectric dam, has acquired Brazilian water utility Sistema Produtor Sao Lourenco as part of efforts to boost its presence in the South American country.
Gezhouba Brazil has completed an equity transfer worth some USD200 million with Brazilian Camargo Correa Group and Andrade Gutierrez Group, to become the sole shareholder in the firm, which serves Brazil's largest city of Sao Paulo, financial news site Economic Daily reported.
The enterprise has already made some headway in the South American market, acting as the main contractor on multiple major hydroelectric projects including the Sopladora plant in Ecuador and a USD5.8 billion river dam in Argentina, said Chen Xiaohua, chairman of Gezhouba Group Overseas Investment.
The deal gives the Wuhan-based company operational rights for the city's new USD860 million water supply program, which is expected to be completed this August. Initiated in 2014, the program includes water treatment utilities, pumping stations, and 83 kilometers of pipelines.
Sao Paulo, a key economic center in South America, faces the possibility of long-term severe water shortages. The new network will provide some 1.5 million people with the daily water supply capacity of 410,000 tons, significantly easing pressure on resources.
Editor: William Clegg