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SIIC Environment secures concessions for China water tariff hikes
TWO units of water treatment firm SIIC Environment have inked agreements for concession rights regarding water tariff hikes in China, the Mainboard-listed company announced in a Wednesday bourse filing.
SIIC Environment (Dalian) Co, an indirect subsidiary of SIIC, signed a supplementary agreement on concession rights for its Dalian Wan Wastewater Treatment Plant project in Dalian City in Liaoning province. The plant has a total design capacity of 40,000 tonnes/day.
The water tariff there had been increased from 1.27 yuan per cubic metre to 1.37 yuan per cubic metre, retroactively effective on Dec 21, 2018.
Separately, Fudan Water Engineering and Technology Co, another indirect subsidiary of SIIC, signed a supplementary agreement on concession rights for its Ningbo Hangzhouwan New District Wastewater Treatment Plant Project, which has a total design capacity of 90,000 tonnes/day.
Under the new tariff model, which was effective from the start of 2019, for treated wastewater under 60,000 tonnes per day, the tariff would be raised from 1.09 yuan per cubic metre to 1.784 yuan per cubic metre.
For treated wastewater over 75,000 tonnes per day, the tariff was raised to 1.54 yuan per cubic metre from 0.876 yuan per cubic metre.
Meanwhile, treated wastewater between 60,000 and 75,000 tonnes per day would face a tariff of 1.579 yuan per cubic metre, up from 0.896 yuan per cubic metre.
Both the Dalian and Hangzhouwan projects are "expected to contribute to the group's performance positively going forward", SIIC said in the filing.
SIIC shares closed flat at 24 Singapore cents on Wednesday.