Citic Envirotech, CITIC Group's platform to develop its water and environmental business, has secured three built, operate and transfer (BOT) water projects, two in China and one in Indonesia.
The three BOT projects, which were awarded on 23 and 24 November, are the following:
- Haining BOT wastewater project. The 25-year BOT Project involves the construction and operation of a 25,000 m3 /day membrane bioreactor (MBR) industrial wastewater treatment plant, 15,000 m3 /day industrial water recycling plant and a 15,000 m3 /day industrial water supply plant in Jing Bian Industrial Park located in Haining City, Zhejiang Province, China. Jing Bian Industrial Park is China's largest manufacturer of warp knitting textiles, producing 20% of the country's warp knitting textiles output. Construction work is expected to commence immediately. The total project investment is estimated at RMB182 million (US$28.5 million).
- Gaoyang BOT wastewater project. The project involves the construction and operation of a 60,000 m3 /day textile wastewater MBR plant in Gaoyang County, Hebei Province. The construction of the MBR plant will commence immediately. Upon completion, the company has the concession to operate the MBR plant for 25 years. The total project investment is estimated at RMB200 million (US$31.3 million).
- Medan BOT water project. The company's subsidiary, PT CITIC Envirotech Indonesia (PT CEI), has secured a BOT water supply project in Medan City, Indonesia through the acquisition of 100% of the issued share capital of the project company, PT Sumut Tirta Resource (PT STR) for a consideration of SGD 8.23 million. PT STR was awarded a 25-year concession to build and operate river water treatment plants with total capacity of 81,000 m3 /day and to supply clean water to the local water authority in Medan City. The Medan project is the company's first water supply project in Indonesia. Construction work will commence immediately and is expected to be completed by the end of 2016. The total project investment is estimated at RMB159 million (US$24.8 million).
Additionally, the company has announced that it has been selected for the supply, installation and commissioning of a membrane bioreactor (MBR) system with the contract value of RMB 76 million in Jiaxing, China.
The capital required for the above mentioned projects 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 company.