BEIJING, May 23 (Xinhua) -- With its water supply and waste management business in China soon expected to be worth a billion U.S. dollars a year, the world's largest environmental service provider, Veolia Environment, is taking steps into China's energy and transport market.

    Henri Proglio, Chairman and CEO of Veolia Environment, said in Beijing on Tuesday that China's increasing demand for energy-savings and transport management have lead his company to expand.

    According to Proglio, Veolia Energy was recently awarded its first contact in China, to operate the air conditioning system at Guangzhou University in south China.

    Meanwhile, Veolia Transport has just opened up a representative office in Shanghai, said Proglio.

    As one of the 29 special business advisors to Beijing's mayor, Proglio is visiting Beijing for the 7th Meeting of International Business Leaders Advisory Council for the Mayor of Beijing.

    Proglio said China is facing energy shortages during its rapid economic growth, so energy-saving has become an important task for the Chinese government.

    Proglio said Veolia is talking with a number of Chinese cities about the management of urban heating systems and public transport systems.

    These projects include a transport management system around Beijing's airport which is still under negotiation between Veolia and the Beijing municipal government, said Proglio.

    Talking about Veolia's traditional water business in China, Proglio said his next target is to expand urban water services to China's large rural areas. Veolia has expanded its water supply and wastewater treatment business to 15 Chinese cities, Proglio said.

    A Fortune World 500 company, Veolia Environment is increasing its income from the Chinese market by 20 percent a year.

    In 2005, Veolia realized an income of 700 million U.S. dollars from China, Proglio predicts the income will soon surge to 1 billion dollars in China. Enditem