China Everbright Water bags 30-year concession for treatment plant

CHINA Everbright Water : U9E 0%, part of a consortium, has been granted the concession right of a wastewater treatment plant in Qingdao entailing an investment of 688.3 million yuan (S$129.4 million), it said in a regulatory filing on Wednesday (Mar 13).

Under Phase 1 of the project, the consortium with Qingdao Environmental Energy will undertake to upgrade the Zhangcun River Waste Water Treatment Plant to a treatment capacity of 40,000 cubic metres. Phase 2 involves building the waste water plant with a capacity of 60,000 cu m.

The concession right of the project in Qingdao’s Laoshan district for 30 years includes the construction period, during which the consortium will finance, build, operate and maintain the plant, based on the build-operate-transfer model.

China Everbright Water will take a 49 per cent stake in the project company, and Qingdao Environmental Energy is to hold the remaining 51 per cent.

China Everbright Water also announced in a separate statement that its chief financial officer (CFO) and executive director Luo Junling will resign as a result of “changes in work arrangements”. It did not elaborate.

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Song Libin takes over the CFO role from Mar 18; Wang Yuexing will replace Luo as a member of the strategy committee, and become the alternate authorised representative to Luan Zusheng.

China Everbright Water shares were up 2.3 per cent or S$0.005 to S$0.22 on Wednesday, before the investment and appointments were announced.