Dujiangyan project in Sichuan province, China. Photo: iStock

Chinese construction and engineering firm, Gezhouba Group, has become the 100% controlling shareholder of the São Lourenço water supply project in Brazil, Economic Daily reported.

The company bought out the project from two Brazilian private conglomerates, Camargo Corrêa and Andrade Gutierrez.

The acquisition — for an undisclosed amount — is considered to be a further overseas expansion of Chinese enterprises under the Belt and Road Initiative.

Earlier media reports suggested that the group would be willing to spend up to US$200 million to acquire the Brazilian utility.

The project is located in Sao Paulo, the largest city in Brazil, where a serious long-term shortage of water resources has limited the economic and social development of the region.

The project is designed to have a daily water supply capacity of 410,000 tons, which can meet the needs of 1.5 million people.