07 Nov 2011
Everbright International Secures Two New Environmental Water Projects
To Invest RMB420 Million to Construct Waste Water Treatment Projects in Shandong ProvinceChina Everbright International Limited ("Everbright International" or "the Group"), is pleased to announce that the Board of the Company has approved an investment proposalof RMB420 million in the Licheng Waste Water Treatment Plant Expansion Project ("Licheng Project Phase II") in Jinan City, Shandong Province and Nanyunhe Waste Water Treatment Plant ("Nanyunhe Plant") in Dezhou City, Shandong Province. The total accumulated investment in Shandong Province by the Group will be amounted to RMB4.2 billion.
The Phase I Project of the Licheng Waste Water Treatment Plant ("Licheng Project Phase I") in Jinan City has commenced operation in July 2009 with a concession period of 25 years and the water discharge has complied with the national Grade 1A standard. The water discharge from the Phase I Project has been further processed into reusable water to supply to a nearby power station for use as circulated cooling water this year. This is a successful initiative to expand the Group's environmental protection business while becoming a new profitdriver. With the rapid growth of the urban areas in the east of Jinan City, the Phase I Project has been operating at full capacity. To cope with the commencement of the eastern route of the South-to-North Water Diversion Project and improve the water quality of Xiaoqing River, the Jinan Municipal Government has decided to expand the Licheng Project. The expansion project is to be included in the energy conservation and emission reduction plan of Jinan City under the Twelfth Five-Year Plan. The expansion capacity of Phase II of the project is 100,000 m3 per day, commanding a total investment of approximately RMB195 million. The concession period is 25 years, including the construction period, with the operation period of Phase I extended by two years and to be transferred together with Phase II in 2036. Phase II Project is scheduled to be completed and commence commercial operation during 2012. Upon completion, the overall capacity of the waste water treatment plants in Licheng, Jinan will reach 200,000 m3 per day.
The Dezhou Nanyunhe Waste Water Treatment Project is the Group's third investment project in Dezhou, Shandong Province. The Group has invested in the development of Plant 2 and Plant 1 of the Dezhou Ling County Waste Water Treatment Project on BOT and TOT basis in 2009 and 2010 respectively. The Group won the tender of the Nanyunhe Project this year with the highest fee quotation and the highest composite assessment scores. The Nanyunhe Project principally treats industrial and household waste water. The Group plans to invest, construct and operate the project on BOT basis. The Nanyunhe Project is designed to have a total waste water treatment capacity of 150,000 tonnes/ day with an investment cost of RMB230 million. It is to be built in two phases with a concession period of 25 years excluding the construction period. The project is expected to be completed and commence commercial operation in 2012 and the water discharge will comply with the national's Grade 1A standard. The Nanyunhe Project is a vital part of the Shandong Coastal and River Water Treatment Project and also a key project for pollution reduction and protection of the urban ecology in Dezhou City.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "Everbright International has undertaken several green projects in Shandong, including waste water treatment, waste-to-energy, biomass power generation, reusable water recycling and waste water source heat pump facilities etc. "Steady operation and emission standards compliance" has always been its top priority. To fulfill its responsibility of pollution reduction, the Group has continued to develop new and integrated use of resources. It is believed that the Company can only go further and faster when it is also committed to social responsibility in its quest for development."
Mr. Chen continued, "The launch of emission reduction policy under the Twelfth Five-Year Plan will create greater latitude and a more extensive platform for the development of the Group's environmental protection businesses. As such, while the Group is developing rapidly with record high profit, Everbright international intends to expand its environmental protection and alternative energy businesses, with the aims to maximise the returns for shareholders, create better career prospects for its staff and build a brighter future for the next generation in China. "