An engineering, procurement and construction (EPC) contract for the project was signed on Wednesday between the water supplier, Germany-based Passavant Roediger and Vietnam’s Construction Corporation No. 1.

According to the company, the plant is worth VND1.2 trillion, with 80% of the investment financed by Germany’s Commerzbank. Using the crude water from the Dong Nai River, the plant is scheduled for completion and operation in October, 2014.

Currently, there are two operational water plants in Thu Duc District’s Linh Trung Ward, which are Thu Duc with a daily treatment capacity of 750,000 cubic meters and BOO Thu Duc with 300,000 cubic meters.

Saigon Clean Water and Investment Joint Stock Company was established in 2010 with 60% owned by Saigon Water Corporation (Sawaco), 30% by Refrigeration Electrical Engineering Corporation (REE) and the rest by Water Supply & Sewerage Construction and Investment Joint Stock Company (Waseco).

Tran Dinh Phu, general director of Sawaco, said that the firm’s clean water supply capacity has amounted to some 1.5 million cubic meters per day, and with Thuc Duc 3 water plant, the total capacity will be increased to 1.8 million cubic meters.

Under the water supply planning, Sawaco will build two more water plants, expand Tan Hiep plant and take over Kenh Dong plant, raising the water supply capacity for HCMC to 2.4 million cubic meters per day in 2015.