20 Jan 2008
Everbright International Takes Over Jiangyin Waste Water Treatment Project
Explores Water Quality Restoration Market in Taihu Lake RegionChina Everbright International Limited ("Everbright International" or the "Company") is pleased to announce that Everbright Water (Jiangyin) Limited, the joint venture company established by one of its wholly-owned subsidiaries and the state-owned enterprise Xin Guo Lian has formally taken over four waste water treatment plants in Jiangyin City ("Jiangyin Waste Water Treatment Project"). The handover ceremony was attended by senior government officials of Jiangyin City and Jiangsu Province. This demonstrates the support from the municipal government to Everbright International's environmental protection operation.
As announced by the Company on 19 November 2007, the total consideration of the acquisition of four waste water treatment plants, with designed daily waste water treatment capacity reaching 190,000 tonnes, is RMB624 million, of which 70% will come from the Company. After the handover, the Company will upgrade the plants to comply with Grade 1A water discharge standard at an estimated construction cost of RMB201 million.
The Company has also signed a letter of intent with the Jiangyin Municipal Government to invest in the sewage piping network in the urban and rural areas and waste water treatment plants in the rural areas of the municipality in the next two to three years. The plants and sewage piping network will eventually be integrated into one seamless system, making it the first integrated urban and rural waste water treatment model project in the PRC.
At the handover ceremony, Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "Government dedication to environmental protection and growing public awareness of the issue has presented immense opportunities to the country's environmental protection industry. The satisfactory progress we have made so far with waste water treatment projects in Shandong Province has given us a strong leverage to pursue waste water treatment projects in Jiangsu Province. With pollution in the Taihu Lake region a key concern, the Project will be an important model for other waste water treatment projects in the Taihu Lake region. We will enjoy advantage in securing other similar projects in the area and see our leadership as a provider of Grade 1A standard waste water treatment service in the PRC."