AnnAik unit wins additional concession rights for China's Changxing wastewater plant

SINGAPORE - An AnnAik subsidiary has clinched additional service concession rights to build and operate a wastewater treatment plant in the Chinese town of Changxing.

AnnAik's 60 per cent unit, ChangXing AngWei Environmental & Ecological Engineering Co, entered into the extension framework agreement on Sept 28 with the Changxing municipal government.

Under the deal, the total daily waste water treatment capacity of the plant will increase to 30,000 tonnes from 20,000 tonnes. The government has guaranteed that, based on 1.8 yuan per tonne, in the first two years of operation, the plant will treat at least 60 per cent of its targeted total capacity; and at least 80 per cent of targeted total capacity from the third year onwards.

The concession rights available to the subsidiary will last for 30 years from January 2015. Completion of the plant is expected by end-2019. AnnAik estimates total investment to be up to 29 million yuan.

AnnAik's investment in the project will be funded by internal resources and bank borrowings.