06 Nov 2018
Everbright International Secures Tianjin Beichen Household and Food Waste Integrated Treatment Project
Marking Another Large Project Secured in Tianjin and An Increase of 20,000 Tonnes of Daily Treatment Capacity so far in 2018
Hong Kong, 6 November 2018 – China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that, following the securing of a project in Xiqing District of Tianjin Municipality, the Group has recently secured Tianjin Beichen Household and Food Waste Integrated Treatment Project ("Beichen Project"), which commands a total investment of approximately RMB1.954 billion.
Comprising Beichen Waste-to-energy Project (including a leachate treatment station) and Beichen Food Waste Treatment Project, Beichen Project will be invested in, constructed and operated based on a BOOT (Build-Own-Operate-Transfer) model, which is under the PPP (Public-private Partnership) model, by a project company jointly established by Everbright International and a company representing the Beichen District Government of Tianjin Municipality, for a concession period of 30 years (construction period inclusive). Everbright International holds a 66% equity stake in the project company. Beichen Project is mainly responsible of processing all household waste from Hongqiao District of Tianjin, some household waste from the Beichen, Xiqing and Hebei districts, and food waste from Beichen District, in the city.
Beichen Waste-to-energy Project, which will be constructed in two phases, has a total designed daily household waste processing capacity of 3,000 tonnes, with a total investment of approximately RMB1.844 billion. Phase I of the project commands an investment of approximately RMB1.579 billion, has a designed daily household waste processing capacity of 2,250 tonnes, and is expected to generate green electricity of 246,375,000 kWh annually. It will be equipped with three 750 tonnes/day mechanical grate furnaces, two 35MW steam turbines and two 40MW power generators. Its gas emissions will fully comply with relevant national standards, with the daily average level of online monitored gas emissions superior to the Euro 2010 Standard.
In addition, Beichen Waste-to-energy Project will be equipped with a leachate treatment station. Phase I of the station is designed with a daily leachate treatment capacity of 1,500 m3, and will be constructed in parallel with phase I of Beichen Waste-to-energy Project.
Beichen Food Waste Treatment Project, which commands an investment of approximately RMB110 million, has a designed daily food waste processing capacity of 200 tonnes. It will also be constructed in parallel with phase I of Beichen Waste-to-energy Project.
Mr. Wang Tianyi, CEO of Everbright International, said: "Everbright International won the bid for Beichen Project within only half a month after it had secured Tianjin Xiqing Household Waste Integrated Treatment Plant PPP Project. The total investment of the two projects exceeds RMB4 billion, with the daily waste processing capacity of the first phases of both projects reaching 4,500 tonnes in total. The overall capacity will increase to 6,000 tonnes if the second phases of the two projects are added – representing large quality projects that are rarely found in the domestic waste-to-energy industry. The breakthroughs made by the Group in the Chinese municipality demonstrate its strong brand influence and investment capacity. Everbright International will continue adhering to its construction and operational philosophy of "Pursuing Excellence and Close to Zero Discharge", and develop the two projects in Tianjin into quality projects and benchmarks, with an aim of contributing to Tianjin's ecological and environmental progress. So far in 2018, the Group has secured a total of 16 waste-to-energy projects and a supplementary agreement on the expansion of a waste-to-energy project, including the two recently-secured projects in Tianjin. These projects have boosted the Group's total daily waste processing capacity to 20,900 tonnes, which helps to further solidify and demonstrate the Group's leading position within the industry."
In addition, Everbright International's waste-to-energy and biomass power generation projects recently received a total of approximately RMB260 million subsidies granted under the scheme for China's Seventh-batch Additional Subsidy Funds for Renewable Energy Electricity Tariff. This has further improved the Group's account receivable. In response to this, Mr. Wang Tianyi emphasised that, "Fundamentally speaking, waste-to-energy and biomass power generation projects are categorised as environmental protection and poverty alleviation infrastructures rather than power generation facilities. Electricity tariff subsidy granted by the government plays an important role in supporting the development of these industries. As a result, we believe that such policies are comparatively stable or would only adjust to a small extent; after all, waste need to find a way for proper treatment, and enterprises are not able to operate without making any profits. As the Group grows rapidly, an increase of the account receivable is not uncommon, and the Group is confident in keeping it within control."