SINGAPORE, July 24, 2018 - (ACN Newswire) - The Board of Directors of CITIC Envirotech Ltd. ("CEL", SGX:CEE) wishes to announce that the Company has secured a RMB 134 million Public-Private-Partnership ("PPP") project in Maoming City, Guangdong Province, China.
The project involves the design, construction and operation of a 45,000 m3/day municipal wastewater treatment plant using Membrane Bioreactor ("MBR") technology to treat the wastewater to grade 4 surface water discharge standard.
A project company, CITIC Envirotech Water Resource (Maoming) Co., Ltd, with a registered capital of RMB 40,160,670 will be set up to undertake the project. CEL will own 70% of the project company, while the local government owns the remaining 30%.
Construction will commence immediately and is scheduled to be completed in one year. The project comes with a service concession of 30 years with guaranteed and fixed revenue as well as minimum offtake as follows:
Year 1 - 25%
Year 2 - 35%
Year 3 - 45%
Year 4 - 55%
Year 5 - 65%
Year 6 - 75%
Year 7 - 85%
Year 8 & thereafter - 100%
The capital injection of the above investment is from the proceeds of the recent share placement of S$70 million in the capital of the Company and bank financing.
The above investment has no material effect on the net tangible assets per share or earnings per share of the Company for the financial year ending 31 December 2018.
None of the directors or controlling shareholders of the Company has an interest, direct or indirect in the above projects.
BY ORDER OF THE BOARD, 23 July 2018 :
Lotus Isabella Lim Mei Hua
CITIC Envirotech Ltd.
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