Zhanjiang in South China's Guangdong province signed agreements with Guangdong Holdings Limited (GD Holdings) on June 24 to cooperate on water affairs.

Established in 2000, GD Holdings is a wholly State-owned company that is under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Its businesses cover areas including public utilities and infrastructure, manufacturing, real estate, hotels and hotel management, retail and wholesale trade, as well as finance.

To solve the problem of droughts and water shortages in western Guangdong, especially in the Leizhou Peninsula, a water resources allocation project was launched by the Guangdong provincial government.

GD Holdings will take charge of the investment, construction, and operation of the Zhanjiang part of the water resources allocation project, as well as the water supply project in the city's urban area.

According to the agreements, construction of the Heliu Reservoir will be started at the beginning of July this year, while that of the Nandu River water diversion works and the water diversion project from the Hedi Reservoir is set to begin by December.

The agreements signing is a new starting point for the local government and enterprises to further deepen cooperation in the field of water resources, said Cai Yong, general manager of GD Holdings.

"My company will be devoted to the construction of the Zhanjiang part of the water resources allocation project to ensure the water supply in the city's urban area and to advance the sustainable economic development of Zhanjiang," added Cai.