Beijing opened its first joint venture sewage processing company Tuesday. With a daily capacity of 100,000 tons, it will remarkably improve water quality of the Liangshui River, a major river in the south of the city.

With a total investment of 200 million yuan, the company was established by the Beijing Municipal Drainage Co,ltd, French Veolia Water Co. ltd and a Malaysia-based public utilities company.

The foreign companies will hold 51 percent of the company's shares during the first 20 years and a representative from the French company currently acts as the general manager. However, in 20 years, the operational rights will be transferred to Beijing Municipal Government.

Located at the upper reaches of the Liangshui River, the sewage processing company will benefit the 364,000 local residents after construction of its factory is completed.

According to a source from the Beijing Municipal Drainage Co.ltd, the company's sewage processing factory, together with other two local sewage processing factories, will collect and treat 90 percent of sewage in the Liangshui River valley.

According to Tu Zhaolin, head of Beijing Municipal Drainage Co.Ltd., France-based Veolia Water is a leading water company in the world, whose management experience and advanced technique of water treatment will be helpful for China's sewage processing business.

Till now, Veolia Water has invested nearly 10 billion yuan (1.21 billion dollars) in China's water market, said Sophie Lamacq, managing director of Veolia Water South China Ltd.