SIIC Environment Awarded Two Build-Operate-Transfer Wastewater Projects in China

SGX Mainboard-listed water treatment and environmental protection company SIIC Environment Holdings Ltd, has been awarded two Build-Operate-Transfer (“BOT”) wastewater projects in Jiangxi Province, China.

The Group’s 60%-owned subsidiary, Ranhill Water (Hong Kong) Limited had been awarded the Yongfeng Industrial Park BOT Wastewater Project by the Jiangxi Yongfeng County People’s Government, People’s Republic of China
(“Yongfeng BOT Project”).

Representative image: Wikimedia Commons

The Yongfeng BOT Project entails the construction and operation of a wastewater treatment plant with a design capacity of 10,000 tons per day with a discharge standard of Grade 1B for a concessionary period of 29 years from the commercial operation date. The base tariff of the Yongfeng BOT Project is RMB1.91 per ton which would be adjusted upon the relevant actual investment, production costs and taxes during the concessionary period.

In addition, the Group’s 60%-owned subsidiary, Ranhill (Wanzai) Water Co. Ltd. had been awarded the Wanzai Industrial Park BOT Wastewater Expansion Project by the Jiangxi Wanzai Industrial Park Administrative Committee, People’s Republic of China (“Wanzai BOT Expansion Project”). The Wanzai BOT Expansion Project entails the construction and operation of a wastewater treatment plant with a total design capacity of 7,500 tons per day with a discharge standard of Grade 1B for a concessionary period of 29 years from the commercial operation date.

With Phase I’s daily capacity of 5,000 tons, the total design capacity of Wanzai BOT Project is 12,500 tons per day. The base tariff of the Wanzai BOT Project is RMB2.52 per ton which would be adjusted upon the relevant actual investment, production costs and taxes during the concessionary period.

The guaranteed minimum treatment volume for the Yongfeng and Wanzai BOT projects are represented as follows:  

Given more stringent environmental regulations on industrial wastewater discharge in China, more direct investment in industrial parks’ wastewater treatment facilities are encouraged by local governments.

These two new industrial wastewater treatment BOT projects enhance the Group’s current presence in Jiangxi province and illustrate successful business expansion in the industrial water sector after the Group’s acquisition of Ranhill Water (Hong Kong) Ltd. in December 2016.

The above is not expected to have material impact on the net tangible assets per share and earning per share of the Company and the Group for the financial year ending 31 December 2017.

Press Release by SIIC Environment

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Taxonomy

• Technology
• Wastewater Treatment
• Wastewater Collection
• Business Strategy
• Wastewater Treatment Plant Design
• Utility Management