Investment in a BOO Project in Shan’xi Lvliang
The Company and Asia Water Technology Ltd.(“Asia Water”) has jointly incorporated a project company, Lvliang Xinya Water Service Co. Ltd.(“Lvliang Xinya”), involving a water supply solution from Wenyu River to Lvliang City.
Lvliang Xinya has a registered capital of RMB98million, among which the Company will invest RMB40million for a 40.82% stake and Asia Water invest RMB58million for a 59.18% stake.
The Project typifies a Build-Own-Operate (“BOO”) contract. It involves providing a water supply solution of up to 20 million tonnes per year (with a long-term capacity of 40 million tones per year).This entails the construction of a 60 Km piping system, 4 reservoirs with a total capacity of 40,000 tonnes, a control and automation system, pump rooms and other facilities necessary for the supply of water to Lv Liang City in Shanxi province.