11 Jan 2010
Everbright International Secures First Waste Water Treatment and Biomass Power Generation Projects in Xinyi City, Jiangsu Province
Continues to Expand Business ScopeChina Everbright International Limited ("Everbright International" or "the Group") has signed a Built and Transfer (BT) contract for construction of phase I of a waste water treatment plant in the Xinyi Economic Development Zone ("Xinyi Waste Water Treatment Project – Phase I") and an investment agreement for a biomass combustion power and heat generation project in Xinyi City ("Xinyi Straw Project") with the Xinyi Municipal Government in Jiangsu Province ("Xinyi Government"). The two projects are respectively the Group's first BT waste water treatment project and first biomass project.
Xinyi Waste Water Treatment Project – Phase I
The BT project commands a total investment of approximately RMB62,150,000 and has a designed waste water treatment capacity of 10,000 tonnes/day (the entire project reaches a total treatment capacity of 30,000 tonnes/day). The Group will be responsible for construction and, when the construction is completed which is estimated in the fourth quarter of 2010, the project will be transferred to the Xinyi Government, which will pay by installments to repurchase the project within four years (construction period inclusive).
The Group saw the Xinyi Waste Water Treatment Project – Phase I, its first project operated in BT basis, as demonstration of the confidence and recognition of the Xinyi Government has in Everbright International's specialized construction expertise. It will take the project as a starting point in exploring other cooperative opportunities with the Xinyi Government in future. The comprehensive strategic cooperative agreement between the two parties was signed in October 2009 with both sides committed to begin cooperation in the environmental protection field under the principle of "implementing projects with one success followed by another".
Xinyi Straw Project
The Xinyi Straw Project has a total investment cost of approximately RMB$338,000,000 and a designed daily processing capacity of 800 tonnes or an annual processing capacity of 260,000 tonnes. It will be equipped with two 15MW electricity generators and is expected to commence commercial operation in 2012.
Xinyi City is a major county famous for its agricultural production in Jiangsu Province. It produces annual gross amount of around 650,000 tonnes of straw. The actual collection of around 400,000 to 420,000 tonnes of straw is ample for power generation. The project, being the first biomass power generation project of the Group, carries significance in the Group's alternative energy business development.
Mr. Chen Xiaoping, Chief Executive Officer of Everbright International, said, "Xinyi City is right at the border between Jiangsu Province and Shandong Province and is a new area of focus of the Group this year. After several investigative visits to the city, we have found its social and economic conditions suitable for developing environmental protection projects like straw-to-energy, waste-to-energy, waste water treatment and ground water supply plants, etc. These latest agreements are new attempts of the Group and it believes, with the support of the Xinyi Government, it will be able to open more development opportunities and achieve breakthroughs in the area and as a result expand its income base."