China’s Tri-Tech Holding (NASDAQ:TRIT) said Thursday it won a $40 million joint bid for a major drinking water treatment plant in the Inner Mongolia Autonomous Region of the country.

With a capacity of 96,000 cubic meters, the Magnolia plant, located in the city of Ordos, is expected to be one of China’s largest drinking water treatment plants of its kind, using both ultra-filtration and nanofiltration technologies.

The company jointly bid with Beijing Anguo Water Treatment Automation Engineering Technology and the two will now enter into a joint venture agreement to serve as general contractor, with Tri-Tech holding an 80% stake and Anguo holding 20%. Fourth Construction Company of Hebei Province will serve as the civil construction sub-contractor on the project.

Under a Build-Transfer contract, with a budget of $40 million, the companies will provide the primary pressure pump station, engineering, construction, equipment, installation, personnel training, trial run and compilation of operation and service manuals.

After project completion, which is targeted for late 2011, the water treatment plant will be transferred to the Municipality of Ordos in the Dongsheng District.

The Ordos plant will encompass 150,000 square meters and provide daily treatment capacity of 96,000 cubic meters in its first phase.

Tri-Tech, which said it expects to recognize revenues of $32 million for its role in the project, will use the traditional process of flocculation, sediment and conventional filtration for pre-treatment and ultra-filtration and nanofiltration technologies for advanced treatment. After treatment, the groundwater will meet new national standards in China for drinking water.

“The new Chinese standards will help the country close the gap to developed countries in terms of drinking water safety,” Tri-Tech said in a statement. “The implementation of these new standards is a big step toward China's goal of making potable water available directly from the tap in the near future.”

Project contracts are currently being negotiated, with the establishment of the joint venture expected to be completed shortly, and the plant operational for initial trials by the end of next year.