Leader Environmental Technologies has secured a build-operate-transfer (BOT) contract worth RMB62.5 million ($12.7 million) to treat the municipal sludge from the wastewater plant in Tianjin City, China.
Leader Environmental will form a subsidiary with state-owned enterprise Tianjin Capital Water comprising a 90% and 10% stake respectively to undertake the contract with an exclusive concession of 25 years.
Leader Environmental will provide technology and design and construct a 100 tons/day municipal sludge facility using its proprietary technologies.
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“This is our first BOT project in sludge treatment, and it will generate stable and recurring income for the company during the 25-year concession period. This project win is a great endorsement of our technologies in sludge treatment,” says Dr Lin Yucheng, chairman and CEO of Leader Environmental Tech.
“We are also honoured to partner Tianjin Capital Water Co., Ltd, which is a state-owned enterprise and a local water company. Our technologies and expertise will help such water companies to treat sludge generated from their wastewater treatment plants. There are currently more than 3,500 municipal sewage treatment plants in China with a total treatment capacity of 180 million tons per day generating more than 50 million tons of sludge annually,” Lin adds.
The construction of the project is scheduled to be completed within one year.
The project will contribute positively to the revenue for the company for the FY ending Dec 31.
Shares in Leader Environmental closed 0.1 cent lower or 0.6% down to 17.9 cents on Jan 28.
