CITIC Envirotech secures 3 projects in China worth $292 mil
SINGAPORE (Jan 14): CITIC Envirotech (CEL) has secured three projects in China worth a total of RMB 1.46 billion ($292.3 million).
The first is a RMB 506 million public-private-partnership (PPP) project in Dongyuan County, Guangdong Province. The project involves the design, construction and operation of 75 wastewater treatment plants and related piping networks and the upgrading of 2 wastewater treatment plants in the towns and villages. CEL will also provide ancillary services in waste management.
This project is backed by the Chinese government as part of Guangdong Province’s 13th five-year environmental protection plan to develop and beautify villages and townships in Dongyuan by 2020.
The second is a RMB 149 million ecological project in three townships in Zhaojue County, Sichuan Province.
In the project, the group will be undertaking the demolition of existing townships, project planning, design and construction of new townships with essential infrastructure and auxiliary facilities, as well as the resettlement of the population into the newly developed townships in Zhaojue County.
The ecological restoration project involves a total land area of 566,000 square metres.
This project is also part of the Chinese government’s initiative to improve the quality of life for the residents of Zhaojue County, who currently reside on rural land area that lack proper facilities and amenities.
The group will receive a guaranteed return of 14.4% on the project value, which will be backed by a central government grant. In addition, the group will receive 7% per annum of any amount financed during the course of the project.
The third is an industrial hazardous waste treatment and industrial park development project worth RMB 807 million in Wuji County, Hebei Province.
The industrial hazardous waste treatment project is located in the Wuji Tannery Economic Industrial Park in Wuji County and involves the design, construction and operation of a 66,000 tons/year thermal pyrolysis system, a 1,650 tons/year medical waste treatment facility, a 12,000 tons/year physical-chemical waste treatment facility and a 70,000 tons/year landfill.
The project will also include investment in a 20,000 cubic meters per day supporting biogas system for anaerobic biogas production to treat cultured manure. The total investment amount for this facility is RMB 532 million and involves a land area of 182,000 sqm.
In addition, CEL and Wuji County Economic Investment Co will undertake the development project in the industrial park which involves construction of factory space to be sold to tenants at an investment amount of RMB 275 million.
For this project, CEL and Wuji Investment have jointly formed a project company, Novo Environmental Ecological Technology Development, with a paid up capital of RMB 135 million. CEL and Wuji Investment will have shareholdings of 80% and 20% in the project company, respectively.
The capital injection of the above investments is from internal resources and bank financing.
Shares in CEL closed 1.41% higher at 36 cents on Monday.
