United Envirotech Ltd signs RMB 286 million contract to acquire, upgrade and expand wastewater treatment plant in Liaoning Province, China

United Envirotech Ltd has announced that it has signed a RMB 286 million (SGD 59 million) 30-year Transfer-Operate-Transfer (TOT) combined Build-Operate-Transfer (BOT) agreement with the municipal government of Hong Wei District, Liaoyang City, Liaoning Province, China.

With a land area of about twice the size of Singapore, Hong Wei is an important industrial district in the Liaoyang City. The pace of industrialisation has been greatly accelerated after its official designation as a 'high-tech' district by the State Council in 2010. Hong Wei is home to the Liaoyang Branch of CNPC, China's largest oil and gas producer and supplier.

UEL has been providing Operation and Maintenance services to the wastewater treatment plant in Hong Wei since 2010. Due to the rapid pace of industrialisation and with the implementation of the more stringent Grade 1A discharge standard by the Central Government, the existing treatment facility is not able to cope. Upgrading and expansion of the treatment plant is required.

Under the terms of the Agreement, UEL will acquire the existing 15,000 m3/day treatment plant for a consideration of RMB 25 million (the 'TOT project'). It will upgrade the plant using its advanced MBR technology. The BOT project involves adding an additional 45,000 m3/day of treatment capacity to cater to the increase in demand. Upon completion, the plant will have a total treatment capacity of 60,000 m3/day and will treat 30,000 m3/day of municipal wastewater and 30,000 m3/day of industrial wastewater.

The upgrading work will commence immediately and is expected to be completed by September 2014. The expansion work is expected to commence in early 2014 and will take 12 months to complete.

Dr Lin Yucheng, Chairman and Chief Executive Officer of UEL said, 'We have expanded our footprint in Liaoyang since our first TOT investment in 2005. This is also the city where our largest MBR reference plant, the 200,000 m3/day municipal treatment plant, is built. We are delighted by the project win as it signified our first major industrial wastewater treatment asset in the city.'

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