CITIC Envirotech has been awarded a wastewater public and private partnership (PPP) project in Liaoyang City, China.
The PPP project involves an investment of RMB549 million (US$85.8 million) into 4 wastewater treatment plants and its associated pipe network in Liaoyang City. In return, the company is expected to enjoy a mutually agreed rate of return on the capital invested and will be granted concessions to operate and maintain (O&M) these 4 plants.
The total waste treatment capacity of the 4 plants is approximately 285,000 m3 /day and the concession periods for the O&M vary between 15-20 years.
The capital required for the PPP project will be funded by the company's internal resources, bank financing and proceeds from the company's US$175 million senior perpetual securities under the US$750 million Multicurrency Perpetual Securities Issuance Programme of the firm.
PPP mode of co-operation has gained much interest in the China water industry after the Chinese government had published 2 new PPP guidelines last year and launched various PPP projects worth RMB 1.97 trillion in water conservation, transport and environment.