Earth Tech, Guangzhou sewage company team up to make China's Pearl River cleaner

The Guangzhou Xi Lang Wastewater Treatment Plant opened Nov. 13 with officials from the Guangzhou Construction Commission and Garden Bureau of Guangzhou, Guangzhou Sewage Treatment Co. chairman Liu Jun, and Alan Krusi, president of Earth Tech. The project is China's first wastewater treatment plant delivered using a Public-Private Partnership (P3). Earth Tech served as plant designer and construction manager and will act as plant operator -- helping also to arrange part of the financing...

New wastewater treatment facility uses an innovative delivery model to reduce the impact of water pollution on Guangzhou residents and to help meet China's water challenges.

GUANGZHOU, China, Nov. 14, 2007 – The Guangzhou Xi Lang Wastewater Treatment Plant was officially opened yesterday by officials from Guangzhou Construction Commission and the Garden Bureau of Guangzhou. Liu Jun, chairman of the Guangzhou Sewage Treatment Company, and Mr. Alan Krusi, president of Earth Tech, attended the event.

The Xi Lang project is an important first for China. It is the country's first wastewater treatment plant delivered using a Public-Private Partnership (P3). Earth Tech, as a global provider of consulting, engineering, construction and operations services, served as the designer, construction manager of the plant and will also act as the plant's operator. Earth Tech also helped arrange part of the financing for the project.

The new Xi Lang plant is located in the Fang Cun area of the Li Wan district of Guangzhou and was built through a joint venture between Earth Tech and the Guangzhou Sewage Treatment Company (GSTC). The plant, which has a maximum capacity to treat 260,000 m3 of wastewater a day, was built six months ahead of schedule, under budget and consistently meets or exceeds Chinese wastewater standards.

"Earth Tech is very proud of its partnership with the Guangzhou Sewage Treatment Company and what we have accomplished is making a real difference in the lives of Guangzhou residents and the local environment," said Alan Krusi, president of Earth Tech. "Together, we are showing how governments and the private sector can cooperate to reduce water pollution and improve the environment."

As part of the City of Guangzhou's commitment to improve water quality in the Pearl River and to promote sustainable development, it decided to pursue an innovative approach to constructing new wastewater treatment facilities. The Build-Operate-Transfer project commenced in December 2001 and was completed in October 2003.

"The Xi Lang plant demonstrates the Guangzhou/Guangdong government's commitment to cleaning up the Pearl River," said Liu Jun, chairman of the Guangzhou Sewage Treatment Company. "We want to protect the river in order to ensure safe drinking water and a clean environment for the people of Guangzhou and the Pearl River Delta area."

The Xi Lang Wastewater Treatment project, which also consists of four pumping stations and 40 km of new sewage interceptor systems to service the Fang Cun area and Haizhu district, features:
• Earth Tech's design of the facility and procurement of world-leading technology and equipment, including a state-of-the-art biological nutrient removal process and a state-of-the art UV disinfection system
• Lower overall cost to the government through increased efficiency and appropriate assignment of risk and responsibility between all the partners
• The involvement of local design and construction expertise – which has made a positive economic impact on the Guangzhou community
• On-going operation and maintenance of the treatment systems by Earth Tech for 17 years, at which point the plant will be returned to GSTC
• Advanced training of plant operators on the new systems
• A design that foresees a second phase that would double the plant's capacity

The Xi Lang Plant is a groundbreaking P3 project that demonstrates such projects can be a win-win proposition by using the strengths of the public sector for local coordination and management and the private sector's technology solutions and project financing. Earth Tech's experience in the global water and wastewater industry has resulted in a facility with world-class technology that will be a vital part of keeping Guangzhou's water clean for generations to come. A recent technical review of the project conducted by leading Chinese and international experts concluded that the Xi Lang Wastewater Treatment Plant is a world class facility and one of the best in its class in China.

The cost for the new plant was approximately RMB 986 million (approximately US$130 million) and was financed impart by Tyco International, Earth Tech's parent company, and a major Chinese bank.

Statistics show that per capita water resources in China are only one third of the world average. Managing water sources, controlling water pollution and ensuring a safe supply of drinking water are critical challenges for China as it seeks to balance its continued economic growth and sustainable development. China's 11th Five-Year-Plan has prioritized reducing pollution, promoting more aggressive treatment of wastewater and recycling water.

"China has made a priority of welcoming foreign investment in the development of the water and wastewater industry and Earth Tech is committed to being a strong partner in that development," added Krusi. "Through the use of Earth Tech's innovative solutions, the new Xi Lang Wastewater Treatment Plant is an excellent model for other Chinese cities and regions as they look to address their water challenges in an efficient and cost-effective manner. This project shows how Earth Tech is making a better tomorrow possible."

Earth Tech Inc. (www.earthtech.com) is a global provider of a full suite of engineering, construction and operations services to the international water/wastewater, environmental, transportation, and facilities markets. A business unit of Tyco International Ltd., which Earth Tech, employs some 7,000 talented people, delivering services to customers in 15 countries, has water and wastewater projects in Australia, Brazil, Mexico, Canada, the United States as well as China. Founded in 1970, Earth Tech has its headquarters in Long Beach, CA.

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