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The world's biggest water company landed the 30-year contract after agreeing to buy 45 percent of the Lanzhou Water Supply Co, based on the banks of the Yellow River, the French firm said on its Website on Monday.

"At this level of participation it would generate for Veolia Water an estimated cumulative total turnover of 1.6 billion euros," the online statement said.

Veolia won a tender in September that involved seven domestic and overseas water companies, including its major rival, Suez Environment.

Operations at Lanzhou Water Supply, which employs 2,200, will start in the middle of this year.

The deal is the 21st for Veolia since it entered the China market in the 1990s. It was the first private company permitted to become involved in full water service in China.

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