Recently, the Platform Company which Beijing Enterprise Water Group (hereinafter referred to as "BEWG") established in Singapore and its partners in Indonesia have agreed to set up a joint venture company to obtain concession rights to invest, construct and operate three water supply plants in Medan City, Indonesia. This Project is to fulfill the water needs of Medan City and sell the clean water to the Purchaser, Peruasahaan Daerah Air Miunum Tirtanadi Provinsi Sumatera Utar. The concession period is 25 years. The construction includes three water supply plants and its ancillary facilities. The total design capacity of this project is 81,200tons/day, and there is a guaranteed 100% utilization off-take. The total project investment is about RMB 200 million. This Project will commence construction in the first half year of 2014 and is expected to commence its trial operation upon the completion of the construction in 2015.
Medan city is the capital of Indonesia's north Sumatra province, the economic center of the northern region and the third largest city in Indonesia after Jakarta and Surabaya. It is located in the important regional financial and trade center and transportation hub in Indonesia. Island of Sumatra Medan belongs to is one of the six economic corridors in Indonesia, which focus on oil refining, chemical industry, textile, machinery manufacturing, coconut oil, rubber products, cigarettes, soap, drinks, and many other industries; its economy is stable developing.
This is BEWG's first investment in Indonesia. As one of the global economic rapid developing area, BEWG sees tremendous development opportunities, and will be a new growth source for BEWG's overseas business. Furthermore, the success of this Project will rapidly enhance the corporate reputation of BEWG in the international water industry, and gain overseas development experience as well as provide a good training ground for BEWG's employees. The expansion into Indonesia and the Southeast Asia markets marks a mile stone for the company, given its strategic importance. It also accelerates BEWG's transition towards becoming a global water player.
About Beijing Enterprises Water Group Limited (0371 HK)
The Company was incorporated in Bermuda as an exempted company with limited liability and the shares of which are listed on The Stock Exchange of Hong Kong Limited. The ultimate holding company of the Company is Beijing Enterprises Holdings Limited, (stock code: 0392). The Group strategically positions itself as a "leading integrated water system solution provider", and specializes in water service and environmental protection businesses, with waste water treatment as its core business segment.
For more information, visit http://www.bewg.com.hk.
SOURCE: Beijing Enterprises Water Group Limited (0371 HK)