SIIC bags new China wastewater treatment project, three expansion agreements

MAINBOARD-LISTED water and solid-waste treatment company SIIC Environment Holdings said late on Tuesday that it has won a wastewater treatment project in China's Heilongjiang province, and signed three tariff increasing and expansion agreements for similar projects across the mainland.

Two other projects in Guangxi and Henan have also commenced commercial operations, it added. All of the projects are expected to contribute positively to the group's performance.

For the new project, SIIC's indirectly-owned subsidiary Longjiang Environmental Protection Group signed an upgrading agreement for the 10,000-tonne Youyi County WWTP Project with the Bureau of Housing and Urban-Rural Development of Youyi County.

Under the agreement, the project's discharge standard will be upgraded from Class I Standard B to Class I Standard A adopts BOT model. The water tariff for the Youyi project is priced at 2.988 yuan (S$0.60) per tonne, with a 29-year concession period.

Meanwhile, the three tariff increasing and expansion agreements signed by SIIC's indirectly-owned subsidiaries are for three projects with a combined capacity of 110,000 tonnes.

For the first project, SIIC unit Zhaodong Longjiang Environmental Protection signed a supplementary agreement for the Zhaodong City Second Wastewater Treatment Plant Project with the Bureau of Housing and Urban-Rural Development of Zhaodong City.

The construction for the Zhaodong project is divided into two phases, with a total designed capacity of 50,000 tonnes per day. Based on the agreement, the second phase has a designed capacity of 30,000 tonnes per day.

The discharge standard will be Class I Standard A, and the water tariff is priced at 2.87 yuan per tonne.

For the second agreement, SIIC unit Hegang Longjiang Environmental Protection signed an expansion agreement for the Hegang City Wastewater Treatment Plant Project (West Plant Expansion) with the People's Government and Water Bureau of Hegang.

The project has a designed capacity of 30,000 tonnes per day. The discharge standard will be Class I Standard A, and the water tariff is priced at 2.75 yuan per tonne, with a 30-year concession period.

For the third agreement, SIIC unit Yinchuan SIIC Environment Riverfront Wastewater Treatment signed a supplementary agreement for the Suyin Industrial Park Wastewater Treatment Plant Project with the Suyin Industrial Management Committee.

The Suyin project, which has a total designed capacity of 150,000 tonnes per day, has commenced operations at a capacity of 50,000 tonnes per day, with a Class I Standard A discharge standard.

The upgrading of the Suyin project will be implemented in two phases, with 25,000 tonnes per day in each phase. The water tariff will increase from 1.35 yuan per tonne to 5.96 yuan per tonne, SIIC said.

Meanwhile, two SIIC projects have commenced commercial operations, with a combined capacity of 230,000 tonnes.

The Beihai WWTP Hongkan Wastewater Treatment Plant completed its upgrading and started operations on June 2. It has a designed capacity of 200,000 tonnes per day, a Class I Standard A discharge standard, and a water tariff of 1.48 yuan per tonne.

The Xiping County 3rd Wastewater Treatment Plant 1st Phase commenced commercial operations on Aug 3. It has a designed capacity of 30,000 tonnes per day, with a Class I Standard A discharge standard and a water tariff of 1.88 yuan per tonne.

SIIC shares ended flat at 19.8 Singapore cents on Tuesday.