SINGAPORE (Aug 28): CITIC Envirotech announced Wednesday it has secured two build-own-transfer (BOT) projects in China with a total investment value of RMB1.69 billion ($327 million).
The first project will see CITIC undertake the design, construction and operation of water supply pipelines at an investment amount of RMB1.34 billion, to provide an additional water source for the population in Xichang City, located in China’s Sichuan Province.
The project comes with a service concession of 30 years, inclusive of a two-year construction period.
CITIC will hold a 78.9% stake in the project company, Changxin (Liangshan) Water Resource Engineering Co., which will be formed to undertake the water supply development project. The project company has a registered capital of RMB446 million.
The second project, with an investment value of RMB345 million, involves the design, construction and operation of a wastewater treatment plant and related piping works.
With a capacity of 30,000 cubic metres per day, the plant will be located at the Chengdu Liangshan Industrial Park, north of Xichang City.
This project comes with a service concession of 32 years, inclusive of a two-year construction period.
CITIC will hold an 89% stake in the project company, CITIC Environment Management (Liangshan) Co., which will be formed to undertake the project. The project company has a registered capital of RMB115 million.
The capital injections for the two project companies will be funded via internal resources and bank borrowings.
CITIC says the investments will not have any material effect on its net tangible assets per share or earnings per share for the financial ending Dec 31, 2019.
Shares in CITIC Envirotech closed half a cent lower, or down 1.7%, at 29 cents on Wednesday.
