Suzhou Waste-to-energy Project Phase I

"Constructing high quality projects and creating outstanding works" Suzhou Waste-to-energy Project Phase I is the first wholly-owned environmental protection project constructed and operated by the Group. The total investment cost of the project is approximately RMB489,443,000. The term of exclusive right of operation is 25 years and the power plant has been constructed on "BOT" basis. The power plant is equipped with three waste incinerators with a respective processing capacity of 350-tonnes per day and two 9,000 kilo-watt generators. Construction of the project duly commenced in October 2004 and commercial operation duly commenced on 18 July 2006. With its designed average waste processing capacity of 1,000 tonnes per day, the power plant is designed to supply no less than 100,000,000 kilowatt-hour of electricity to the power grid per year during the term of exclusive right of operation. The plant has been operating smoothly with emission levels meeting required standards. Its operating performance has reached the designed parameters. Supported by favorable environmental protection policy, the project was approved an increase of on-grid electricity tariff from RMB0.5 per kilowatt-hour as stipulated in the concession right agreement to RMB0.575 per kilowatt-hour, which significantly increased its operation service revenue. Besides, gas emission of the power plant met the Euro I emission standard, and particularly the emission of dioxin met the Euro II emission standard and is better than the PRC regulatory requirement. In order to raise operational standards, the project company has applied to Suzhou Environmental Protection Department to link up its online gas emission monitoring system with the network of Suzhou Environmental Monitoring Team's monitoring centre. The project is the first waste-to-energy project in Jiangsu Province which is under online monitoring by environmental protection department.

Suzhou Methane-to-energy Project Phase I and Phase II

"Cleaning up the environment and sharing the resources" Suzhou Methane-to-energy Project Phase I is a wholly-owned environmental protection project constructed and operated by the Group. The total investment cost of the project is approximately RMB27,940,000. The term of exclusive right of operation is 25 years and the power plant has been constructed on "BOO" (Build-Operate-Own) basis. The project is equipped with two 1,250 kilo-watt generators. The Suzhou Methane-to-energy Project and the Suzhou Waste-to-energy Project are on the same power grid. Commercial operation of the Suzhou Methane- to-energy Project Phase I commenced on 31 August 2006. The project is expected to supply no less than 12,480,000 kilowatt- hour of electricity to the power grid per year during the term of exclusive right of operation. Supported by favorable national environmental protection policy, the project was approved in April 2007 to increase the on-grid electricity tariff from RMB0.527 per kilowatt-hour to RMB0.636 per kilowatt-hour and the on-grid electricity tariff was further increased to RMB0.646 per kilowatt-hour in 2008, which significantly increased its operation service revenue. In July 2007, the Group and Suzhou Municipal Public Utilities Authority entered into an agreement in respect of the investment and construction of Suzhou Methane-to-energy Project Phase II. The investment cost of Phase II is approximately RMB12,750,000, including the addition of one 1,250 kilo-watt generator. Commercial operation of Phase II duly commenced at the end of September 2008 and it is now operating at full capacity. It is expected to further supply no less than 8,000,000 kilowatt-hour of electricity to the power grid per year.

Suzhou Waste-to-energy Project Phase II

"Establishing the country's biggest waste-to-energy plant with the best quality construction and highest efficiency" Given the remarkable social and economic benefits from Suzhou Waste-to-energy Project Phase I, the Group, in July 2007, entered into an agreement with Suzhou Municipal Public Utilities Authority in relation to the construction work of Suzhou Waste- to-energy Project Phase II. Pursuant to which the designed waste processing capacity of Phase II was adjusted from 500 tonnes of household waste daily to 1,000 tonnes of household waste daily. The total investment cost of Phase II is approximately RMB450,000,000. Its term of exclusive right of operation is the same as Suzhou Waste-to-energy Project Phase I. Construction work of the project duly commenced in February 2008 and its core structure completed at the end of 2008. Upon completion of the construction of Phase II by the second quarter of 2009, the total processing capacity of Phase I and Phase II will reach 2,000 tonnes of waste daily, and will supply 200,000,000 kilowatt-hour of electricity to the power grid per year. By then, Suzhou Waste- to-energy Project will become one of the biggest waste-to-energy power plant in the PRC.

Suzhou Industrial Solid Waste Landfill Project

"Establishing the country's first industrial solid waste landfill operated on commercial basis" Suzhou Industrial Solid Waste Landfill Project is a wholly-owned project constructed and operated by the Group. The total investment cost of the project is approximately RMB377,484,000. The term of exclusive right of operation is 30 years. The total storage capacity of the project is 600,000 cubic metre. For Phase I of Suzhou Industrial Solid Waste Landfill Project, the investment cost is approximately RMB78,100,000 and the storage capacity is 200,000 cubic metre. The construction of Phase I duly commenced in November 2006 and commercial operation of the project commenced in July 2007. This project is the first industrial solid waste landfill project operated on commercial basis in the PRC and is the only project of this kind in Suzhou.

Suzhou Everbright National Demonstrative Veinous Industrial Park Projects

"Making the area a base for environmental education and promotion in Suzhou, establishing it as a beautiful industrial zone" In July 2005, the Group entered into a framework letter of intent in respect of the construction of Suzhou Everbright Environmental Protection Industrial Zone with the Municipal Government of Mudu Town, Wuzhong District, Suzhou City, Jiangsu Province. In 2007, the State Environmental Science Institute has completed the new "Construction Plan Guidelines" of Suzhou Everbright Environmental Protection Industrial Zone and the project has been formally renamed "Suzhou Everbright National Demonstrative Veinous Industrial Park" ("Suzhou Veinous Park"). The project is the country's first integrated park for environmental protection to centralize the disposal of municipal solid waste. According to the new construction plan, Suzhou Veinous Park will occupy an area of approximately 2.5 square kilometers and due to a large increase in the number of development projects, the original estimated total investment cost of approximately HK$1,500,000,000 is expected to increase substantially. Through comprehensive planning and centralization of management, the whole project will be implemented in phases over 3 to 5 years.

A number of projects inside Suzhou Veinous Park have already been completed, including the Waste-to-energy Project Phase I, the Methane-to-energy Project Phase I and Phase II and the Industrial Solid Waste Landfill Project Phase I. As for projects under construction, they include the Waste-to-energy Project Phase II and a leachate treatment plant. The projects to be developed include a sludge treatment centre, a solid waste technology development and research centre, the Waste-to- energy Project Phase III and an electronic waste recycling centre, etc.

Yixing Waste-to-energy Project

"Establishing a waste-to-energy pioneer project with domestic equipment based on imported technology" In April 2005, the Group entered into an undertaking in respect of exclusive right of operation with the Construction Bureau of Yixing City. Pursuant to which a waste-to-energy plant will be constructed in Yixing City. The total investment cost of the project is RMB238,300,000. The term of exclusive right of operation is 25 years and the power plant will be constructed on "BOT" basis. The plant is equipped with two waste incinerators, each with a respective processing capacity of 250 tonnes per day and a 9,000 kilo-watt generator. The construction of Yixing Waste- to-energy Project duly commenced in September 2005 and the plant started commercial operation in June 2007. The on- grid electricity tariff is RMB0.646 per kilowatt-hour. According to its development plan, the project's designed waste processing capacity is 500 tonnes per day and is expected to supply no less than 44,500,000 kilowatt-hour of electricity to the power grid per year during the term of exclusive right of operation. The project is the Group's first waste-to-energy pioneer project with domestic equipment based on imported technology. After one and a half years of operation, it proved that waste-to-energy plant constructed with domestic equipment developed from imported technology could also operate smoothly and successfully, with dioxin emission complying with Euro II standard. It offers the Company an alternate choice of construction when constructing other waste-to-energy plants in the future. Like Suzhou Waste- to-energy Project Phase I, the project company has applied to the local environmental protection department to link up its online gas emission monitoring system with the network of the environmental protection department for the purpose of online emission monitoring by the government.

For the waste-to-energy industry, the processing of leachate is a difficult problem. The Group has chosen Yixing Waste-to- energy Project to be the country's first waste-to-energy plant to treat leachate according to Grade 1A standard and the treated water can be used as recycled water and for plantation. The said project has demonstrated a technological breakthrough in the environmental protection industry of the PRC. The related experience will be applied to the other waste-to-energy projects of the Group. In order to fully utilize the methane produced by leachate treatment, a 120-kilowatt methane-gas power generator was installed. In December 2008, the generator commenced generation of power. At present, its average daily generation output is more than 1,000 kilowatt-hour of electricity. The electricity output has been for our own use, resulting in the decrease of electricity cost. Yixing Project Company was also approved to increase waste processing fee to RMB74.13 per tonne from 1 January 2008.

Jiangyin Waste-to-energy Project

"Constructing high quality projects, enhancing techniques and technologies and creating new focus" In January 2006, the Group secured a waste-to-energy project in Jiangyin City of Jiangsu Province. The total investment cost of the project is approximately RMB388,740,000. The term of exclusive right of operation is 30 years. The designed processing capacity of the power plant is 800 tonnes of waste per day. The construction of the power plant has been conducted in two phases on "BOT" basis. Its ultimate processing capacity is expected to be no less than 1,200 tonnes of waste per day. Phase I of the power plant is equipped with two waste incinerators with a respective processing capacity of 400 tonnes per day and a 12,000 kilo-watt generator. Construction work of the project commenced on 28 June 2006 and its commercial operation commenced in May 2008. On-grid electricity tariff was fixed at RMB0.646 per kilowatt-hour. With its designed waste processing capacity of 800 tonnes per day, Phase I of the project is expected to supply no less than 77,000,000 kilowatt-hour of electricity to the power grid per year during the term of exclusive right of operation. The leachate treatment project of the power plant is also designed and constructed according to Grade 1A standard, with the view of achieving "nil discharge", and test running has already started.

Changzhou Waste-to-energy Project

"Creating an outstanding model of the industry by assimilating new ideas and raising standards" Changzhou Waste-to-energy Project is the fourth waste-to-energy project of the Group in Jiangsu Province. The total investment cost of the project is approximately RMB412,560,000. The term of exclusive right of operation is 25.5 years. The designed processing capacity of the power plant is 800 tonnes of waste per day. It has been constructed on "BOT" basis. The plant is equipped with two waste incinerators with a respective processing capacity of 400 tonnes per day and a 12,000 kilo- watt generator. Construction work of the project commenced in March 2007. In November 2008, the plant was able to supply electricity to the power grid when carrying out (the "72+ 24" hours) test running. According to its development plan, the power plant's designed waste processing capacity is 800 tonnes per day and is expected to supply no less than 77,000,000 kilowatt- hour of electricity to the power grid per year during the term of exclusive right of operation. Besides, based on the experience from Yixing Project and Jiangyin Project, the leachate treatment centre of the power plant is designed and constructed according to Grade 1A standard, with the view of achieving "nil discharge".