China Everbright Water unit bags 2nd phase of industrial waste water project in Jiangsu

MAINBOARD-LISTED China Everbright Water has secured the second phase of an industrial waste water project worth an investment of 859.4 million yuan (S$171.3 million) in the Pukou Economic Development Zone of Nanjing City, Jiangsu Province, China.

This was done through project company - Everbright Industrial Waste Water Treatment Nanjing - which entered into a supplementary agreement with the Nanjing Pukou Economic Development Zone Administration Committee (Pukou Economic Zone Authority) and Nanjing Tianpu Construction Engineering Co (Nanjing Tianpu), in relation to a concession agreement on a Nanjing Pukou Industrial Waste Water Treatment project.

Everbright Industrial Waste Water Treatment Nanjing will be the party investing 859.4 million yuan in the project, which will be funded through internal resources and external financing. Returns on investment, meanwhile, will be from waste water treatment service fees to be paid by Nanjing Tianpu.

Incorporated in 2016, the project company is 60 per cent owned by a subsidiary of China Everbright Water, with 40 per cent owned by the subsidiary of an independent third-party.

It was incorporated for the investment, construction and operation of Phase I of the Nanjing Pukou Industrial Waste Water Treatment project, which had completed and commenced operations in 2017. The project is also subject to a concession period - from Aug 23, 2016 to Aug 22, 2036 - granted by the Pukou Economic Zone Authority.

The new Phase II project will include an industrial waste water treatment project and a reusable water project, and will see the project company being responsible for the investment, construction and operation of the project exclusively on a BOT (Build-Operate-Transfer) model.

The Phase II project looks to meet the rising need for industrial waste water treatment in the Pukou Economic Development Zone, which has seen an increase in industrial waste water production.

China Everbright Water said the Phase II project is expected to enhance long-term returns and value for shareholders of the company.

"The Phase II project serves to expand the presence and influence of the company in Jiangsu Province and provides a good foundation for further water projects to be undertaken by the company in Jiangsu Province in the future," it added.

China Everbright shares were trading at 38.5 Singapore cents on Monday, up 0.5 cent or 1.32 per cent as at 3.35pm.