Everbright Environment progresses on its Green "Belt and Road" Path

China Everbright Environment Group Limited ("Everbright Environment" or the "Company", Hong Kong stock code: 257) is pleased to announce that the Company has recently made good business progress relating to Thua Thien Hue Waste-to-energy Project ("Hue Project") and Da Nang Waste-to-energy Project ("Da Nang Project") in Vietnam, respectively.

On 31 December 2020, Everbright Environment and Hue Provincial Metropolitan Development Zone Authority signed the Project Investment Implementation Contract for Hue Project. The total investment of Hue Project is approximately USD74.55 million (fly ash landfill inclusive), with a concession period of 25 years (construction period inclusive). The project will be equipped with a 500 tonnes/day mechanical grate furnace and a 12MW medium-temperature sub-high-pressure steam turbine power generator. After the construction work is completed, Hue Project will be able to process approximately 220,000 tonnes of household waste and is expected to generate approximately 93 million kWh of green electricity, per annum. Since winning the bid for the project in October 2018, the Hue Project team has overcome many difficulties and challenges including relocation of project site, adjustment to the project treatment capacity and the COVID-19 pandemic. Despite the difficulties, the team proactively carried out project preparation, and strived to negotiate a cooperation agreement with the local government. As a result, both parties reached a consensus eventually.

On 29 December 2020, EB Environmental Energy (Vietnam) Holdings Limited ("Everbright Vietnam Holdings"), a subsidiary under Everbright Environment, reached a Joint Venture Agreement on Da Nang Project with a local investor in Vietnam. Following the completion of the investment process, Everbright Vietnam Holdings will hold a 74% equity interest in the joint venture company, and the local investor will hold the rest portion of the equity interest. The total investment of Da Nang Project is approximately USD75 million, with a concession period of 25 years (construction period inclusive). The project will be equipped with a 600 tonnes/day mechanical grate furnace and an 18MW medium-temperature sub-high-pressure steam turbine generator. After the construction work is completed, the project is expected to have a household waste processing capacity of approximately 270,000 tonnes and is expected to generate approximately 120 million kWh of green electricity, per annum. Da Nang Project has clearly defined business conditions and has been well prepared to meet requirements for the commencement of the project construction. After the investment procedure is completed in accordance with relevant legal procedures and agreements, Da Nang Project will be officially implemented.

Hue Province and Da Nang City are adjacent to each other, located in the central part of Vietnam and are both famous tourist hubs. Core technical equipment for both Hue Project and Da Nang Project will be sourced from Everbright Environment, and the equipment is independently developed by the Company. The projects’ gas emissions will fully comply with the Euro 2010 Standard. Relevant construction work is set to commence in the first half of 2021, and it is expected that the projects will complete construction and commence operation by 2022.

Mr. Wang Tianyi, Chairman of the board and Chief Executive Officer of Everbright Environment, said, "Hue Project and Da Nang Project mark another important milestone for Everbright Environment's proactive implementation of the Green Belt and Road Initiative and prudent execution of its overseas development strategy. The Company’s Can Tho Waste-to-energy Project ("Can Tho Project") in Vietnam is the first and only household waste-to-energy facility in operation in the country. Since its commencement of operation two years ago, Can Tho Project has maintained a high standard for operation, becoming a local demonstrative and benchmark environmental protection project and receiving broad recognitions from the local communities, which has led to enhanced investor confidence. Everbright Environment will continue to promote its advanced technologies and sets of equipment, together with its management experience as well as its diversified investment models. It will proactively participate in environment management in Southeast Asia and the rest of the world, and continue to provide high-quality and comprehensive environment management services, in order to facilitate the ecological and environmental protection as well as ecological conservation across various locations."