Citic Envirotech forms two subsidiaries for Xiaogan City projects

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Citic Envirotech said on Tuesday that it formed two subsidiaries, Novo Environmental Water (Hanchuan) and Novo Environmental Water (Xiaogan), to undertake public-private-partnership (PPP) projects in Xiaogan City, Hubei Province, in China.

Novo Environmental Water (Hanchuan) has a registered capital of 154 million yuan, with Citic Envirotech holding 90 percent and the local country government holding 10 percent, it said in a filing to SGX after the market close on Tuesday.

The PPP project involves the investment of 219 million yuan in 20 build-operate-transfer (BOT) wastewater treatment plants to treat municipal wastewater for 20 townships in Hanchuan County, the filing said. The plants will have a service concession of 29 years, it said.

The second subsidiary, Novo Environmental Water (Xiaogan), has a paid-up capital of 137 million yuan, with Citic Envirotech holding 90 percent and the local county government holding 10 percent, it said.

The associated PPP project involves the investment of 243 million yuan in seven BOT wastewater treatment plants to treat municipal wastewater for seven townships in Xiaonan District, it said.

The service concession is for 30 years and the local government will guarantee a fixed return over the concession’s life, the company said.

The capital injections into the two subsidiaries were funded by internal resources and bank financing, Citic Envirotech said.

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