Contract signature Jiangsu Lianyungang Xugou Waste Water Treatment Project Phase II

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China Everbright Water Limited announced that the Company has recently signed a supplementary agreement with the Housing and Urban-rural Development Bureau of Lianyungang City in Jiangsu Province, and secured Jiangsu Lianyungang Xugou Waste Water Treatment Project (Xugou Project) Phase II.

Xugou Project Phase II has a designed daily waste water treatment capacity of 40,000 m3. It will be invested in, constructed, and operated based on a BOT (Build-Operate-Transfer) model, with a concession period of 30 years (one-year construction period inclusive). Xugou Project Phase II will adopt the AAO treatment process same as Xugou Project Phase I, and the discharged water will comply with the national Grade 1A standard according to the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002). After Xugou Project Phase II completes construction and commences operation, the designed daily waste water treatment capacity of Xugou Project will reach 80,000 m3 in total.

As a wastewater treatment project for key inspection in Jiangsu Province and a major project in Lianyungang City, Xugou Project Phase I has been operating smoothly and in compliance with relevant discharge standards in the past few years. Securing Xugou Project Phase II demonstrates the recognition and support to Everbright Water from the local government authorities and the public. The project is also expected to ease the increasing demand for the local wastewater treatment, and facilitate Lianyungang City in improving its urban wastewater collection and treatment system. This will effectively protect and improve the quality of the local water environment. Everbright Water will strive to develop Xugou Project Phase II into a benchmark project, and create synergies with the other water projects of the Company located in Lianyungang and its surrounding areas. This will enable the Company to provide better and more efficient water treatment services and solidify the Company’s market position in these regions.

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