THE Asian Development Bank said yesterday it is investing US$4 million with three Singaporean companies to set up a joint venture which aims to support China's efforts in tackling water supply and wastewater problems.

ADB will take a 40-percent stake in the firm, Asia Infrastructure Project Development Co, which will help local governments on the Chinese mainland to develop projects in water supply, sanitation and wastewater treatment, it said in a statement.

The joint venture will provide feasibility assessments, planning, design and other services, the statement said. The three firms involved are United Engineers Singapore, Konzen Environment and Crest Spring, the statement added, without giving more details.

Local governments find it hard to attract private funding for water and wastewater infrastructure projects, the ADB said. Only about 40 percent of urban wastewater in China is treated, while the rest is discharged into rivers, lakes and seas.

China aims to extend water supply coverage to 95 percent of the population and wastewater treatment to 70 percent of the population, by 2010.