SGX Mainboard-listed water treatment and environmental protection company SIIC Environment Holdings Ltd. has received approval from the Wuhan Water Bureau to commence commercial operations for the expansion and upgrading project of the Hanxi Waste Water Treatment plant.
The daily design capacity of the Hanxi plant was been raised to 600,000 tons per day with a discharge standard of Grade 1B. The price of the waste water treatment increased from RMB0.723 (US$0.11) per ton to RMB1.139 (US$0.17) per ton. The guaranteed minimum treatment volume for the first two years is 560,000 tons per day. From the third year within the concessionary period, the guaranteed minimum treatment volume will be 600,000 tons per day.
With the central and local governments’ commitment to higher standard of waste water treatment utilities facilities, the Group is expecting more business opportunities similar to the expansion and upgrading project of the Hanxi Waste Water Treatment plant.
The above is not expected to have any material impact on the net tangible assets per share and earnings per share of the Company and the Group for the financial year ending 31 December 2017.