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Eighty percent of the sewage in China's capital will be properly treated by 2005 thanks to a huge treatment project launched here on Friday.

The project was jointly launched by state-owned Beijing Drainage Group (BDG) and Beijing City Water Service Company (BCWSC) , involving an investment of 1.9 billion yuan (2.3 billion US dollars) to construct three sewage treatment facilities in the next two years.

By the end of 2005, Xiaohongmen, Qinghe and Beixiaohe sewage treatment factories will start operating and increase the rate of treated sewage from the 50 percent to 80 percent.

Under the cooperation agreement signed Friday, BCWSC will invest 850 million yuan (103 million US dollars) with the rest being financed by BDG through loans.

BDG chairman Tu Zhaolin said the financial arrangements symbolized the municipal government would not have to finance local sewage treatment projects, leaving more space for market forces.

Beijing produces 1.2 billion cubic meters of sewage annually, which used to be handled mainly by public enterprise.

The Ministry of Construction encouraged investment from various sources to participate in construction, operation and development of public service projects early this year.

Vice-Mayor of Beijing Liu Zhihua said encouraging market forces to enter public services such as sewage treatment would greatly enhance the quality of the service.

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