China Everbright Water bags 1.05b yuan water treatment contracts with Shandong government

MAINBOARD-LISTED China Everbright Water has bagged some 1.05 billion yuan (S$208.03 million) in contracts with government authorities in Zibo City, Shandong province for multiple relocation, expansion and upgrading projects of its existing waste water treatment plants.

Among the contracts involve the relocation and expansion of Zibo Waste Water Treatment Project (Northern Plant), the upgrading of Zibo Waste Water Treatment Project (Southern Plant) and the upgrading of Zibo High-tech Zone Waste Water Treatment Project, all located in Zibo City.

The company will invest in, construct and operate these projects based on a BOOT (build-own-operate-transfer) or a BOT (build-operate-transfer) model. Each of the three projects has a concession period of 30 years (construction period inclusive), starting from the construction commencement date, the water environment management company said in a Friday press statement.

Post-upgrade, all three plants will conform to the national Grade 1A water standard or higher, with some discharge indicators following China's Surface Water Quality Standard for Category IV.

For Zibo Waste Water Treatment Project (Northern Plant), the company will invest some 855 million yuan in the relocation and expansion project. Under the agreement with Shandong authorities, the plant will be relocated and its designed daily treatment capacity enlarged by 50,000 cubic metres to 250,000 cubic metres.

The company will plough in some 109 million yuan for its Zibo Waste Water Treatment Project (Southern Plant) upgrading project. Its designed daily waste water treatment capacity will remain unchanged at 50,000 cubic metres.

The Zibo High-tech Zone Waste Water Treatment project, meanwhile, will see an investment of about 83 million yuan and its designed daily waste water treatment capacity will remain unchanged at 100,000 cubic metres.

Everbright Water had previously acquired Zibo Waste Water Treatment Project (Northern Plant) and Zibo Waste Water Treatment Project (Southern Plant) on a TOT (transfer-operate-transfer) model, and Zibo High-tech Zone Waste Water Treatment Project based on a BOT model.

Executive director and chief executive of Everbright Water An Xuesong said the new projects are expected to "boost the existing plants' operational efficiency and the company's economic benefits, and to solidify the company's position in the local market".

"The projects will effectively satisfy the local demand for waste water treatment and improve the water environment and ecological progress of the city," Mr An said.

Its counter was trading 1.41 per cent up at 36 Singapore cents apiece as at 3.33pm on Friday.