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Citic Envirotech lands two projects in China

CITIC Envirotech (CEL) has won bids for two projects in China, it announced on Monday.

The first project is for a public-private-partnership (PPP) project in Xinji City, Hebei Province. The PPP project involves an investment of 204 million yuan (S$41.3 million) into a wastewater treatment plant with a capacity of 100,000 cubic metres per day.

The Xinji City government is operating Phase 1 of the wastewater treatment plant with a capacity of 66,000 cubic metres/day, treating both municipal and industrial wastewater.

"The government called for a tender under the PPP model to undertake the investment and operation of the existing 66,000 cubic metres/day wastewater treatment plant as well as design, construct and operate Phase 2 of the project involving a 34,000 cubic metres/day wastewater treatment plant," said CEL. The project comes with a service concession of 30 years.

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CEL and the local county government will set up a 90 per cent:10 per cent joint venture company respectively, with a total investment value of 204 million yuan and a registered capital of 80 million yuan for the project. Construction of the project will commence in July this year and is scheduled to be completed by March next year.

Meanwhile, the second project is for a 230 million yuan build-operate-transfer (BOT) water recycling project in Changyi City, Shandong Province.

Phase 1 of the construction of the 30,000 cubic metres/day water recycling plant will start immediately and is expected to be completed by October this year. The project has a concession period of 30 years.

The capital injection of the two projects is funded from the proceeds of the last issuance of its perpetual capital securities.