Construction giant Leighton Holdings Ltd (ASX: LEI) said on Wednesday that its Asian subsidiary would be taking part in a joint venture that is set to develop Hong Kong's new $660 million sewerage sludge treatment facility.

Leighton Asia said that it would team up with Leighton sister company John Holland and Veolia Water SCL in a contract to design, construct, test and commission the sewerage facility, adding that it has already secured its role on the multi-party joint venture.

Leighton Asia further revealed that the facility, once completed and fully operational, will assume its role as the largest sewage sludge incineration that saw construction, adding that its function "is critical to the region's wastewater treatment capacity and, at 2,000 metric tonnes per day."

The company said that the facility is set to be an advanced sewage treatment operation as "the plant will generate its own energy, being self-sustaining and virtually self-sufficient, and combines proven technologies with leading innovations in receiving and treating dewatered sewage sludge from sewage treatment works."

Leighton Asia managing director Hamish Tyrwhitt hailed the company's latest undertakings as a significant and landmark work project which he said would commence construction works shortly to reach its target completion by 2013.

Mr Tyrwhitt said that Leighton Asia was able to win the new contract owing to the company's remarkable track record of delivering large scale infrastructure services which "allows us to remain the contractor of choice for the next phase of environmental infrastructure construction."

Reacting to the encouraging news, Leighton Holdings shares climbed up by 56 cents or 1.64 percent to trade up at $34.80 by 1538 AEDT on Wednesday.