RPT-ADB, Singapore companies in China water joint venture

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SINGAPORE, April 15 (Reuters) - The Asian Development Bank (ADB) said on Tuesday it has formed a joint venture to improve standards and facilitate private sector participation in China's water treatment industry.

ADB estimates that China will require $140 billion in water investments by 2010, and said its joint venture will help generate at least $150 million worth of projects a year.

"We strongly believe the equity investment ... will catalyse private sector participation in China's water supply and wastewater treatment," ADB Vice-President for Finance and Administration Bindu Lohani said at a press conference in Singapore.

Called Asia Infrastructure Project Development (AIPD), the joint venture will help local governments in China attract funding and private sector investors by providing services such as feasibility assessment and preliminary design.

ADB has already signed a Memorandum of Understanding with the Kunming and Harbin governments to develop projects related to municipal waste water collection and treatment, water recycling, sludge treatment and solid waste management.

ADB has a 40 percent stake in the joint venture, while Singapore property and construction firm United Engineers (UTES.SI) has 35 percent.

Konzen Group and Crest Spring, two other Singapore water companies, have a 12.5 percent stake each.

(Reporting by Yvonne Cheong; Editing by Kevin Lim)