SINGAPORE (May 28): China Everbright Water says it recently secured the Zhejiang Tongxiang West Area Drinking Water Sources Protection Public-Private Partnership (PPP) project, which comes with an investment of RMB1.253 billion ($250 million).
This marks China Everbright’s foray into the business of drinking water sources wetland protection, says the group in its filing on Tuesday, aside from being its first environmental water project in the Zhejiang province.
The group intends to establish a 79.9%-owned project company with the government of Tongxiang city and a consortium from the private sector that includes China Everbright.
An investor representative of the Tongxiang government will hold a remaining 20% equity stake.
Under the project company, China Everbright will construct and operate a wetland ecological engineering project, a new water pumping station and new raw water pipeline network.
These will take up an area of 5,400 mu in total.
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Within the wetland engineering project component, a parallel system will be developed to connect the north, middle and south areas of wetland, with each such area being operated independently.
Water from these three areas will flow to a water intake area, and then be transferred to the local water plants through a pumping station with a total designed daily treatment capacity of 600,000 sq m.
In addition to the wetland ecological engineering project, the project will also include the construction of a pumping station and two raw water pipelines of 30km in length.
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An Xuesong, executive director and CEO of the group, says securing the project not sets a foundation for Everbright to explore the field of water environment treatment, but also strengthens its strategic development in Eastern China.
“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,” says An.
“Everbright Water will fully leverage on its experience and advantages in the field of water environment treatment, and smoothly carry out the investment, construction and operation of the Project, to give a reliable assurance to the local residents of Tongxiang City in providing safe drinking water,” he adds.
Shares in the group closed 1.32% lower at 38 cents on Monday.
