1. to issue RMB 900 mln worth of seven-year corporate bonds
The proposal will be valid for 2 years following approval by the China Securities Regulatory Commission.
2. to invest RMB 10 mln in cash for the establishment of an asset management subsidiary
3. for Beijing Urban Construction Investment & Development Co., Ltd., a subsidiary, to:
a) acquire Anhui Jixi Huachen Sewage Treatment Co., Ltd. for RMB 8 mln
According to an agreement signed by Jixi Huachen and the Anhui Jixi People's Government, Jixi Huachen owns a 30-year franchise right for a sewage treatment project in Jixi County, Anhui Province with a general design capacity of 40,000 cubic meters per day. The daily design capacity in the first phase of the project, in which RMB 23 mln will be invested, is 15,000 cubic meters.
b) acquire Ningguo Huachen Sewage Treatment Co., Ltd. for RMB 20 mln
Ningguo Huachen acquired a 30-year franchise right for a BOT project with a general design capacity of 80,000 cubic meters per day. In the project's first phase, to which RMB 51.13 mln will be contributed, the daily design capacity is 40,000 cubic meters.
c) acquire a 20% stake in Nanchang Qingshan Sewage Treatment Co., Ltd., currently held by The Third Urban Construction Group Co., Ltd. of Beijing, for RMB 29 mln
Nanchang Qingshan has obtained a 20-year franchise right on a sewage treatment project with Phase 1 general design capacity of 330,000 cubic meters/day and as much as 1 mln cubic meters/day in Phase 2.
d) invest in the Hebei Dachen Sewage Treatment Factory project
A 25-year franchise right for the 4,000 cubic meters/day project will be acquired
The project’s first phase, in which a total of RMB 32.2 will be invested, will have a daily design capacity of 15,000 cubic meters.
e) acquire a sewage treatment project in the Anhui Chaohu Economic Development Area for RMB 773,400
Beijing Urban Construction Road & Bridge Engineering Co., Ltd. has a 30-year franchise right for the project. The design capacity 20,000 cubic meters/day. The project's first phase, to which RMB 26 mln will be contributed, has a design capacity of 10,000 cubic meters/day.
Following the acquisition, the company will sign a supplementary agreement to obtain related franchise rights for Beijing Urban Construction Road & Bridge.
4. to convene the 3rd 2008 Extraordinary General Meeting of Shareholders on 8 Oct 2008 to examine Proposal 1.

Board of Directors
19 Sept 2008


Source: Shanghai Stock Exchange

Date: 19 Sept 2008

CN01/CJ/JL/BT/MM