"It means more opportunities for all four divisions of Veolia - water, waste, energy and transportation," said the CEO of the France-headquartered firm.

He said Veolia will continue to invest heavily in China. By 2013, its total investment in the country is expected to amount to $2.5 billion, compared with the current $1.5 billion.

Since entering China a decade ago, Veolia, which ranks 128th among the top 500 global companies, has emerged as one of the largest investors and operators in water and waste business in China, with more than 60 projects across the country.

Its China business reached $1 billion last year, with a local staff strength of 15,000.

Proglio, who comes to China a couple of times a year to meet representatives of the local government, partners and staff members, said one of the challenges for establishing a conservation culture in China is the urban heating system. Many cities still use decades-old equipment and pipes, which need to increase energy efficiency and reduce emissions.

"Our energy division, which has the leading technology and equipment in this area, has huge potential here," Proglio said.

In June, the energy division won its first urban heating contract in the country, which is the flagship project in one of the coldest cities of China - Jiamusi, in Heilongjiang Province.

The system serves 250,000 residents as well as businesses and municipal buildings, covering 5.5 million sq m.

Veolia plans to increase it to nearly 15 million sq m of building space by 2020. As part of the contract, more than 600 employees will join Veolia's teams.