Luzhou Xinglu Water has announced that on 26 November 2018, Leshan City Shizhong District Housing and Construction Bureau and the company entered into the PPP Project Agreement in respect of the PPP Project in Shizhong District, Leshan City, Sichuan Province, the PRC.

Pursuant to the PPP project agreement, during the concession period, the company will be responsible for, among other things, the investment and financing, construction and operation and maintenance in respect of the wastewater treatment facilities and wastewater pipeline networks of the PPP project, and will be entitled to receive the wastewater treatment service fees and pipeline networks operation and maintenance fees from Leshan City Shizhong District Housing and Construction Bureau semiannually at a profit margin of 6.97% according to the PPP project agreement.

The concession period shall be 13 years commencing from the Business Operation Date. After the expiration of the concession period, the company shall transfer the PPP project to Leshan City Shizhong District Housing and Construction Bureau or its designated entity at nil consideration.

The PPP Project comprises of the construction and operation of Leshan City Shizhong District city wastewater treatment plant and the supporting pipeline networks project in 20 towns (daily wastewater treatment capacity of 3,800 tonnes); and the entrusted operation of stock assets, including the wastewater treatment plants and their supporting pipeline networks in 17 towns (daily wastewater treatment capacity of 7,613 tonnes).