News | October 20, 2017

SIIC Environment Is Awarded Two Build-Operate-Transfer Wastewater Projects In China's Jiangxi Province

SGX Mainboard-listed water treatment and environmental protection company SIIC Environment Holdings Ltd. (“SIIC Environment”, the “Company”, and together with its subsidiaries or collectively as the “Group”), has been awarded two Build-Operate-Transfer (“BOT”) wastewater projects in Jiangxi Province, China.

The Group’s 60%-owned subsidiary, Ranhill Water (Hong Kong) Limited had been awarded the Yongfeng Industrial Park BOT Wastewater Project by the Jiangxi Yongfeng County People’s Government, People’s Republic of China (“Yongfeng BOT Project”).

The Yongfeng BOT Project entails the construction and operation of a wastewater treatment plant with a design capacity of 10,000 tons per day with a discharge standard of Grade 1B for a concessionary period of 29 years from the commercial operation date. The base tariff of the Yongfeng BOT Project is RMB1.91 per ton which would be adjusted upon the relevant actual investment, production costs and taxes during the concessionary period.

In addition, the Group’s 60%-owned subsidiary, Ranhill (Wanzai) Water Co. Ltd. had been awarded the Wanzai Industrial Park BOT Wastewater Expansion Project by the Jiangxi Wanzai Industrial Park Administrative Committee, People’s Republic of China (“Wanzai BOT Expansion Project”).

The Wanzai BOT Expansion Project entails the construction and operation of a wastewater treatment plant with a total design capacity of 7,500 tons per day with a discharge standard of Grade 1B for a concessionary period of 29 years from the commercial operation date. With Phase I’s daily capacity of 5,000 tons, the total design capacity of Wanzai BOT Project is 12,500 tons per day. The base tariff of the Wanzai BOT Project is RMB2.52 per ton which would be adjusted upon the relevant actual investment, production costs and taxes during the concessionary period.

The guaranteed minimum treatment volume for the Yongfeng and Wanzai BOT projects are represented as follows:

Year (beginning from the commercial operation) Guaranteed Minimum Treatment Volume (Yongfeng BOT Project) Guaranteed Minimum Treatment Volume (Wanzai BOT Project)
First year 5,000 tons per day 8,500 tons per day
Second year 6,000 tons per day 10,500 tons per day
Third year 7,000 tons per day 11,500 tons per day
Fourth year 8,000 tons per day 12,500 tons per day
Fifth year onwards 10,000 tons per day 12,500 tons per day

Given more stringent environmental regulations on industrial wastewater discharge in China, more direct investment in industrial parks’ wastewater treatment facilities are encouraged by local governments. These two new industrial wastewater treatment BOT projects enhance the Group’s current presence in Jiangxi province and illustrate successful business expansion in the industrial water sector after the Group’s acquisition of Ranhill Water (Hong Kong) Ltd. in December 2016.

The above is not expected to have material impact on the net tangible assets per share and earning per share of the Company and the Group for the financial year ending 31 December 2017.

About SIIC Environment Holdings Ltd.
SIIC Environment Holdings Ltd. (“SIIC Environment”) is a top-tier integrated player in China’s water and environmental markets. It is engaged in water treatment, water supply, solid waste treatment and other environment-related businesses. It is previously known as Asia Water Technology Ltd. (“Asia Water”) which was listed on the SGX-ST Catalist in 2005. In 2010, Shanghai Industrial Holdings Ltd. (“SIHL”, stock code: 00363.HK) acquired a controlling stake and completed debt restructuring in Asia Water. It was renamed SIIC Environment and transferred to the SGX-ST Mainboard in 2012. Since the restructuring, SIIC Environment has shown tremendous growth and continues to increase its market share in China’s water and environmental sector.

SIIC Environment is an active investor and operator of environment-related assets and has been operating in China’s water sector for over a decade. Currently, it boasts an overall portfolio of over 127 water treatment and supply projects and 4 waste incineration projects across 19 municipalities and provinces in China, namely Shandong, Guangdong, Hubei, Hunan, Jiangsu, Shanghai, Zhejiang, Jiangxi, Anhui, Fujian, Guangxi, Ningxia, Henan, Liaoning, Inner Mongolia, Shanxi, Sichuan and Heilongjiang.

Leveraging on its scalability and competencies, SIIC Environment will continue to expand its business and explore new markets such as industrial wastewater treatment, seawater desalination, sludge treatment and handling, soil treatment, renewable energy, water technology and pollution control, thereby strengthening its top-tier position in China’s water and environmental industry. For more information, visit www.siicenv.com.

SOURCE: SIIC Environment Holdings Ltd.