Kangda International Environmental has announced that Yunan County Environmental Protection Bureau, Kangda Group and Guangdong Liangke have recently initiated the PPP Project Agreement in respect of a PPP wastewater project after a competitive consultation process.

Pursuant to the PPP Project Agreement, during the cooperation period, the Kangda is entitled to be responsible for the design, construction, investment, financing, operation and maintenance of the project and to charge the project service fees (including wastewater treatment service fee, wastewater pipeline network service fee, operation and maintenance fee of rural wastewater treatment facilities and comprehensive improvement service fee of residential environment) based on the wastewater treatment services and results of environmental quality improvement and pollutants reduction. 

The project is located in Yunan County, Yunfu City, Guangdong Province (China). To practically improve the urban and rural residential environment of the eastern, western and northern regions in Guangdong Province and achieve the goals of comprehensively building a moderately prosperous society and the first ‘‘Centenary Goal’’ in advance in 2018 as proposed by the People’s Government of Guangdong Province and Party Committee of Guangdong Province, Yunan County has been classified as the Rural Domestic Wastewater Treatment Exemplary County in China by Ministry of Housing and Urban-Rural Development of the PRC and the exemplary county of promoting wastewater treatment in the entire county in Guangdong Province. Therefore, the PPP Project has been actively facilitated and will have positive exemplary significance.

The PPP Project comprises subprojects of the wastewater treatment facilities construction (including 14 wastewater treatment facilities in 12 towns, 903 wastewater treatment facilities in rural area and the supporting pipeline networks), the supporting pipeline networks construction for three existing wastewater treatment facilitates, and comprehensive improvement of residential environment in the 15 exemplary central villages, which aims to build villages with ecological agriculture, ecological tourism and ecological cultural characteristic by implementing ‘‘One Village, One Corresponding Policy’’, meaning each village may have the corresponding customized policies based on its environmental and economic conditions; ‘‘Point to an Area’’, meaning promotion in all areas drawn upon the experience gained from one specific case; emphasis on villages environmental improvement; and the orientation of building the ‘‘Beautiful Village’’. It is expected that the PPP Project will be carried out by using a project model of design-build-finance-operate-transfer.

The cooperation period for the aforementioned sub-projects is 30 years commencing from the date of execution of the PPP Project Agreement. The cooperation period may be extended upon request from the Project Company in two years before the expiration of the cooperation period.

Kangda directors believe that entering into the PPP Project Agreement is consistent with the business strategy to explore business opportunities in the area of water resource management and infrastructure development and to enhance its financial performance so as to consolidate the group. The group’s investment in the PPP Project aligns with the national supportive policies issued by the Ministry of Finance and the participation in the PPP Project will enhance its experience in PPP projects where the group will continue to seek other PPP opportunities in the future.