China Everbright Water landed the Zhejiang Tongxiang West Area Drinking Water Sources Protection public-private partnership (PPP) project, which requires an investment of around 1.253 billion yuan (S$249.71 million or US$181.64 million).
“Tongxiang Project marks the first project of the company in venturing into the business area of drinking water sources wetland protection, and is also the company’s first environmental water project in Zhejiang Province,” An Xuesong, executive director and CEO of China Everbright Water, said in the statement.
“Securing the Project not only lays the foundation for the company to explore the field of water environment treatment, but also strengthens its strategic development in Eastern China,” he added.
The project will be on a build-operate-transfer model with a concession period of 20 years, including the construction period, China Everbright Water said in a filing to SGX before the market open Tuesday.
A project company will be established with an investor representative designated by the People’s Government of Tongxiang City and a private-sector consortium including China Everbright Water, the filing said.
China Everbright Water said it would hold a 79.9 percent stake in the project company, while the investor representative will hold 20 percent. CCCC Shanghai Dredging will hold 0.1 percent, it said.
The investment will be funded through internal resources and external financing, the filing said.
The Tongxiang Project will include building and operating a wetland ecological engineering project, a new water pumping station and new raw water pipeline network connecting to two water plants, the filing said.
“After completing construction and commencing operation, Tongxiang Project will effectively upgrade the quality of water supply in Tongxiang City. In addition, it will improve the local water sources and strengthen the risk resistance capabilities of the local water plants,” CEO An said.
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