SINGAPORE, Sept. 28, 2009 -- Mainboard-listed United Envirotech Ltd., a leading membrane-based water and wastewater treatment solutions provider, is pleased to announce that it has secured a contract of RMB245 million to build and operate a 200,000 m³ per day drinking supply and wastewater treatment plant under a Build-Operate-Transfer (BOT) arrangement in Liaoyang City, Liaoning Province, PRC for a concessionary period of 30 years. The project is expected to bring in an estimated revenue of RMB1.4 billion over the concession period.
Chairman and Chief Executive Officer of United Envirotech, Dr. Lin Yucheng, elaborates on its contract win: "This is our second major investment in Liaoyang City after our first Transfer-Operate-Transfer project in 2004. We have proven ourselves as a consistent and reliable operator to the local municipal government and have established a good rapport with the local community. We are eager to expand our presence in the municipal water and wastewater treatment market, consistent with our long-term strategy of strengthening our foothold in the Water Investments space in the PRC."
The project will be constructed in two phases using the Group's proprietary advanced membrane technologies. The project will boost an aggregate treatment capacity of 200,000 m³ per day, comprising of a 100,000 m³ per day drinking water supply plant and 100,000 m³ per day wastewater treatment plant. The drinking water and wastewater treatment services will be provided to Hedong District, a newly developed area in Liaoyang City.
Dr. Lin Yucheng continues: "Upon completion, the new project will be one of the largest membrane-based treatment plant in China and boosting our total treatment capacity in Liaoyang City to 400,000 m³ per day.
We believe this new project and our recent acquisition of a 15% stake in Asia Water Technology shall bring us one step closer to the direction that we intend to move ahead and boost our earnings visibility and recurring income stability. We are encouraged to continue delivering quality services in a cost effective manner."
The project is expected to be funded using a combination of internal resources, bank borrowings and proceeds from last share placement.
To date, the Group has a total of six water investment projects (including the new project) with aggregate treatment capacity of 500,000 m³/day.
Barring any unforeseen circumstances, the project is expected to be completed within 18 months and positively impact the Group's FY2010 performance.
About United Envirotech Ltd.
United Envirotech ("UEL") is a leading membrane-based water and wastewater treatment and recycling solutions provider in China's chemical, petrochemical and industrial park sectors. Its principle activities include design, fabrication, installation and commissioning of water and wastewater systems using its proprietary advanced membrane technologies such as the Membrane Bioreactor (MBR) technology. UEL has designed and built several of the largest industrial wastewater treatment plants in Asia using the MBR technology.
The Group's membrane systems are also used in other industries such as pharmaceutical, food & beverage and textile & dye staff industries. UEL undertakes both turnkey and water investment projects (TOT/BOT/BOO), as well as provides treatment plant operation and maintenance services. UEL serves a strong prominent customer base such as petrochemical giants like China Petrochemical Corporation ("Sinopec"), China National Petroleum Corporation ("CNPC"), China National Offshore Oil Corporation ("CNOOC") and Sembcorp Industries in Singapore etc. Web: www.unitedenvirotech.com
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