Undertaking Unit : The Tianjin Jingtou Company

1. Estimated total investment: 120.59 million RMB

2. Way of Investment: joint venture

3. Prpportion of the Investment: 30 % by Chinese side, 70 % by foreign side

4. Contact adreess:1.Taian Road, Heping District

5. Contact Person: Liu Ruihai

6. Tel No: 0086-22-23111339

7. Fax No: 0086-22-23111836

MARKET PREDICTION

The shortage of fresh water is a worldwide problem. It is even worse in China. Desalination of sea water is one of the effective methods to solve the problem. The daily output of desalinated sea water in the world is 23 million tons. China is only at the preliminary stage. The highly-purified water produced from sea water by distillation can be used for technological production and for the daily use of people. The new generators with the capacity of 35 million kw will be built in the coastal area by 2010. 180,000 tons of water are needed to refill the boilers of the generators every day. In addition, Chemical industry and petro-chemical industry have high demand of fresh water as well. The market is growing. Developed by this project, the desalination installations with the capacity of 10,000 tons of sea water are competitive in domestic and foreign markets for their low production cast. Low power consumption and low operation cast.

BRIEFING OF THE COMPANY

This project is undertaken by the Tianjin Sea Water Desalination Engineering Company Ltd., invested by the sponsors of the Tianjin Economic Construction Investment Corporation (Group) and the Tianjin Research Institute for Sea Water Desalination and Utilization of the National Marine Bureau, The Tianjin Dagang Power Station, Shandong Huangdao Power Station and etc.. The Tianjin Economic Construction Investment Corporation (Group) has 6.3 billion yuan of fixed assets, its band capital credit is graded 3A and the rate of its assets liabilities is about 15%. The above mentioned Research Institute is the sole one specialized in research for sea water desalination technology at the national level, enjoying high reputation for its outstanding engineering designs and consultations of sea water desalination both at home and abroad.

Tianjin Dagang Power Station has the installations for drawing sea water, and low-pressure vapor. There are the good condition for sea water desalination.