Everbright Water Signs Agreement for Shandong Dezhou Nanyunhe Waste Water Treatment Project Phase II and Nanyunhe Waste Water Treatment Plant Effluent Defluoridation Project

Singapore, 28 May 2018 - China Everbright Water Limited ("Everbright Water" or the "Company", SGX: U9E) (中国光大水务有限公司), an environmental protection company focusing on water environment management, is pleased to announce that the Company recently signed a supplemental agreement with Dezhou Municipal Bureau of Housing and Urban-Rural Development in Shandong Province to implement Dezhou Nanyunhe Waste Water Treatment Project ("Nanyunhe Project" or the "Project") Phase II and secure Nanyunhe Waste Water Treatment Plant Effluent Defluoridation Project ("Nanyunhe Effluent Defluoridation Project"), with a total investment of approximately RMB158 million.

In 2011, the Company secured Nanyunhe Project Phase I with a leading score in the overall bidding process. Since it commenced operation in 2013, the Project Phase I has effectively improved the local ecological environment and protected the water quality. The Project Phase II is listed as one of the key auxiliary projects for water pollution prevention and control for Haihe River-basin. It is also one of the key construction projects in Dezhou City. With a designed daily waste water treatment capacity of 75,000 m³ and a concession period of approximately 25 years, the Project Phase II will employ a set of processes, including improved AAO (Anaerobic-Anoxic-Oxic), high-rate solid contact clarifier, V-shaped sand filter and UV disinfection. According to the supplementary agreement, Nanyunhe Project Phase I will extend its concession period till the end of the concession period of the Project Phase II. In addition, with a designed daily effluent treatment capacity of 20,000 m³, Nanyunhe Effluent Defluoridation Project will adopt the chemical precipitation process. Its construction works will be carried out simultaneously with the construction of Nanyunhe Project Phase II.

Nanyunhe Project is primarily responsible for the treatment of all municipal waste water within the boundaries of the Shandong-Hebei border and Jiefang Road, to the west and east of Nanyunhe River respectively. Upon completion of the construction, Nanyunhe Project's aggregate designed daily water treatment capacity will reach 170,000 m³ (inclusive of the effluent treatment capacity).

The implementation of Nanyunhe Project Phase II and the securing of Nanyunhe Effluent Defluoridation Project deepen the ties between Dezhou City and Everbright Water. It also indicates that the Company's strengths in technology and operations management and its corporate brand have won the recognition and support of both the local government and the local residents. This is of great significance to the Company in solidifying its market position in Dezhou City and the greater Shandong Province. Upon the commencement of operation of the projects, Everbright Water's total designed daily water treatment capacity in Dezhou City will reach 230,000 m³. Looking forward, with the business synergies and economies of scale, these projects will effectively fulfill the local needs for water treatment and improve the overall water quality of the river transect of Haihe River in the city, and will therefore facilitate Dezhou City's efforts in achieving concurrent development of environment and economy.