SIIC Environment inks new agreements in Jiamusi City and Dalian City

SIIC Environment, through its 58 per cent-owned subsidiary, Longjiang Environmental, has signed three agreements with the Bureau of Housing and Urban-Rural Development of Jiamusi City, in China's Heilongjiang province. 

The first is a supplementary agreement on the concession of Jiamusi City East Wastewater Treatment Plant Project. The total design capacity of the wastewater treatment project and reclaimed water project are 100,000 tonnes per day and 40,000 tonnes per day respectively, with the discharge standard as Grade 1A.

Consequently, the water tariff for wastewater treatment will be adjusted from 0.914 yuan per cubic metre to a tiered pricing structure based on volume of treated wastewater, starting at 1.55 yuan per cubic metre for 60,000 to 85,000 tonnes per day, 1.35 yuan per cubic metre for 85,000 to 100,000 tonnes per day, and 0.81 yuan per cubic metre for more than 100,000 tonnes per day.

The adjustment to the water tariff is effective from Apr 28, 2018. The concession term has also been adjusted from "2005 to 2032" to "2018 to 2038".

Longjiang Environmental and the Jiamusi Bureau have also signed two agreements on concession rights and operation and maintenance of the Jiamusi City Wastewater Treatment Plant Sludge Disposal Project.

The agreed service fee of sludge treatment based on volume of treated sludge is 562 yuan per tonne for less than 85 tonnes per day, and 498 yuan per tonne for 85 to 100 tonnes per day. The project has a design capacity of 100 tonnes per day and commenced commercial operation since Feb 14, 2018.

Separately, SIIC Environment's wholly-owned subsidiaries, Dalian Ziguang Water Treatment and Dalian Ziguang Lingshui Waste Water Treatment, have signed supplementary agreements on concession rights with the Dalian City Administration Bureau in Dalian City, in China's Liaoning province.

Dalian Ziguang and the Dalian Bureau have signed a supplementary agreement on Dalian Laohutan Wastewater Treatment Plant stipulating that the water tariff is raised from 0.9271 yuan per tonne to 2.055 yuan per tonne, effective from Jan 1, 2018. The design capacity is 90,000 tonnes per day, with the discharge standard as Grade 1A.

Dalian Ziguang Lingshui and the Dalian Bureau have signed a supplementary agreement on Dalian Lingshui River Wastewater Treatment Plant Project, stipulating that the water tariff is raised from 0.9079 yuan per tonne to 1.898 yuan per tonne, effective from Jan 1, 2018. The design capacity is 80,000 tonnes per day, with the discharge standard as Grade 1A.