Tritech Group arm bags $146.65m partnership project in China

It will build a sewage treatment plant and associated pipe networks in Laifeng County.

Construction services provider for water and wastewater infrastructure projects Tritech Group’s subsidiary Tritech Environment Group has clinched a $146.65m (RMB747m) public-private partnership project agreement with Laifeng Country Housing and Urban Development Bureau to construct, upgrade and expand a sewage treatment plant and associated sewage pipe networks, an announcement revealed.

The sewage treatment plant has a capacity of 35,100 cbm/day and is located in the region of Laifeng county, Hubei province in China.

The project will be undertaken by a project company to be jointly incorporated by Tritech Environment (51% equity stake) and Laifeng Country Urban Development and Investment Co. (49% equity stake). The project company’s paid-up capital will be approximately $32.12m (RMB189m), and will be entitled to 100% profit of the project.

The capital injection of Tritech Environment's equity stake is to be completed in two tranches, with $2.02m (RMB10m) injected on the date of signing of the agreement, which has been duly completed, whilst the remaining $17.4m (RMB 86.23m) will be injected within 30 days of the date of signing.

The project company will be responsible for the design, investment, construction, operation, maintenance and user service of the project, which will include, inter alia, a transfer of infrastructure in connection with Laifeng Country Urban Wastewater Treatment Plant, construction, upgrading and expansion of the Sewage Treatment Plant, and associated sewer pipe networks, installations, operation and maintenance of the Sewage Treatment Plant.

Of the estimated investment of $146.65m (RMB727m), the construction investment is said to be approximately $127.29 (RMB631m), whilst sewer infrastructure assets to be transferred to the project company is approximately $19.37m (RMB96m) in value.

The construction period is three years, with a construction-operation-transfer period of 30 years.