Two joint venture water projects worth $64 million unveiled in China

July 28, 2005
The Shijiazhuang Qiaodong Sewage Treatment Engineer Preparation Agency of China announces a Shijiazhuang Qiaodong deep sewage treatment and reuse project with 300,000m3/d treatment capacity. The Luancheng Water Control Bureau of China announces a comprehensive flood prevention project of Jiaohe River...

SHIJIAZHUANG, China, July 27, 2005 (BUSINESS WIRE/FDI Newswire) -- The Shijiazhuang Qiaodong Sewage Treatment Engineer Preparation Agency hereby announces the following project that is seeking foreign direct investment.

The project consists of construction of Qiaodong deep sewage treatment reuse plant, and water transmission pipeline system:
-- Construction scale: 300,000m3/d treatment capacity, 133.528 Km of pipeline.
-- Technological process and equipment selection: The technology is "Prior Mix-Diffusing, Biofiltration-Post, Mix-V-Shape and Filtration tank-Diffusing, Mix-V-Shape and Filtration process." The selected equipment shall be compatible with the process.
-- Construction Standard: advanced and reliable technology, high-degree Automation, stable operation, convenient management and economic.
-- Market Analysis: The main objectives of the recycled water are for industry, river & lake, landscaping, municipal and domestic, etc. use. The maximum water demand is 285,700m3/d according to calculation considering a certain degree of change factors, we think that capacity of 300,000m3/d is sufficient to meet the market need.
-- Economic Benefits Analysis: The construction period is set to the year of 2005-2006. The clients in service area will be charged for recycled water fee on the principle of "costs recover and benefit tiny" after the plant goes into operation in order to assure the plant operates smoothly. The costs are comprised of the expenses of energy, polymer, salary and welfare, depreciation of fixed assets, reparation and daily maintenance, and finance etc. The Investment Profit Margin is 7.3% prior tax and 4.89% after tax. The Investment Profit and tax Margin is 7.46% and 5.05% respectively, the Financial Internal yield is 9.16% and 6.6% respectively, the Financial NCP is US$ 10.04 million and US$ 1.87 million respectively, and the Investment Recovery Period is 11.45 and 13.48 years respectively when calculating before and after the tax.
-- Projected Total Investment sought: US$39.1 million

In other news, the Luancheng Water Control Bureau Agency of Hebei hereby announces the following project that is seeking foreign direct investment.

The project consists of making a dyke higher and thicker, to regulate the river channel, to dredge and deepen the major riverbed, to reconstruct the existing bridges, gates and culverts, to build three series of hydropower stations with 700KW installed capacity, and to tap the scenery project in Jiaohe River.
-- Investment estimation and fund resources: The project needs a total investment of US$24.92 million, US$20.48 to be introduced and the rest to be self-financed by the county.
-- Feasibility of the Project: The project will greatly increase the flood prevention capability in Luancheng County, and in Douyu Industrial Zone in particular. Thus it is a project that will do a lot good to both the people and the county with noticeable social and economic benefits, for it will play a positive role in protecting the local human lives and properties, improving the investment environment in Douyu Industrial Zone, boosting the steady economic and social development and insuring the well-being of the local residents.
-- Construction conditions: The project is located in Luancheng County, where there are favorable natural, social, economic and technological advantages, which have laid a solid foundation for the project.
-- Analysis of economic benefits: First, the project will greatly reduce the occurrence of floods in Luancheng County and in Douyu Industrial Zone especially. Second, it will irrigate 50 thousand mu of arable land, which will decrease the consumption of underground water, improve investment environment and speed up economic development. Third, the development of aquatic projects and the two sides of Jiaohe River are feasible.
-- Projected Total Investment sought: US$24.92 million

For additional information, contact Shanghai UNE Investment Consultation Co. Ltd. at +86-21-62893317, +86-21-64276592, or [email protected].


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