China Jinjiang Environment said on Monday that it would proceed with an engineering, procurement and construction (EPC) deal to build a pilot mechanical-biological waste-treatment project in Singapore after shareholders approved the project in an extraordinary general meeting (EGM).
The project required shareholder approval as it was considered an interested-person transaction, it said in a filing to SGX on Monday.
The mechanical sorting, biological drying and treatment, or MBT, project was awarded by the National Environmental Agency (NEA) of Singapore to maximize recycling and resource recovery from municipal solid waste and prolong the lifespan of the city-state’s only landfill, it said.
Located in Tuas Avenue 2, the project will have a waste-treatment capacity of 500 tons a day and will be among only five such MBT projects in Asia, the filing said.
The competitive tender with a 20-year concession period was awarded to a consortium including Hangzhou Jinjiang Group, which is a controlling shareholder of China Jinjiang Environment, and Eastern Green Power, it said.
Jinjiang Group and Eastern Green Power then jointly established JE Synergy to own and operate the MBT project, it said.
JE Synergy will then engage JE Synergy Engineering, an associated company of China Jinjiang Environment, to provide EPC-related services for a contract sum of S$66.56 million, it said. Because the EPC contract was an interested-person transaction, shareholder approval was sought at the EGM, it said.
Following the MBT project’s construction, China Jinjiang Environment may provide operations and maintenance services to the project on an ongoing basis, it said.
Wang Yuanluo, non-executive, non-independent chairman of Jinjiang Environment, was positive on how the project would help the company expand outside of China and obtain future collaboration projects.
“The successful completion of the project in Singapore will serve as a high-profile demonstration project of JE Synergy Engineering’s engineering and construction capabilities,” she said.
“As the group is looking into the possibility of providing EPC services to other projects of Jinjiang Group or secure other similar EPC projects in Singapore, handling this project will provide us with the relevant credentials, in addition to the additional revenue it will bring,” she added.