China Everbright Water announces breakthrough in ‘asset-light’ business

MAINBOARD-listed China Everbright Water, which offers water environment management solutions, on Monday (Jun 5) said a consortium it is leading has secured a project that that marks the progress the company has made to develop its asset-light business.

The project involves the engineering, procurement, construction and operation (EPCO) of the Jiangsu Huai’an Lianshui Konggang Industrial Park’s industrial waste-water treatment plant. 

The industrial park, slated to be an integrated hub for multiple advanced manufacturing industries such as aircraft manufacturing, is planned as one of the primary development platforms of the Lianshui Economic Development Zone in China’s Jiangshu province.

Related to the project is a 271 million yuan (S$51.5 million) engineering, procurement and construction contract that the company has signed with the consortium’s members and the park development company behind Lianshui Konggang. There is also an operation and management agreement with the park development company.

In essence, China Everbright Water, as leader of the consortium, will be responsible for leading, coordinating and organising all works during project implementation.

The company will also be responsible for the provision of the plant’s operation and management services, and be entitled to collect the waste water treatment service fee during the operation period of five years, subject to a renewal of another three years upon expiry.

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Other consortium members are responsible for design, procurement and construction.

When fully operational, the plant, which will ensure the efficient and safe treatment of industrial waste water within the park, will have a total designed industrial waste water treatment capacity of 60,000 cubic metres a day, the company said.

This is the first time China Everbright Water is adopting the EPCO model in its environmental protection business.

China Everbright Water’s executive director and chairman Hu Yanguo said the project was secured after the company began actively exploring new business directions and promoting the development of both asset-light and asset-heavy businesses. 

“The adoption of the EPCO model will help the company to ‘go light’ and export its rich experience and strengths in operations management, further enriching its experience in the asset-light business,” he added.

Shares of China Everbright Water closed flat at S$0.20 on Monday.