Everbright International Signs Supplementary Agreement on Hainan Tunchang Waste-to-energy Project

28 December 2018, Hong Kong - China Everbright International Limited ("Everbright International" or the "Group") (HKSE: 00257) is pleased to announce that it has recently signed a supplementary agreement to the concession agreement of Tunchang Waste-to-energy Project with the People's Government of Tunchang County in Hainan Province ("Tunchang Government") for the execution of Tunchang Waste-to-energy Project ("Tunchang Project") Phase I and II in Hainan Province, with the total investment increasing to RMB390 million.

The Group signed Tunchang Project Phase I in November 2017. Phase I of the project has a designed daily household waste processing capacity of 300 tonnes, with an investment of approximately RMB247 million for a concession period of 30 years. With the launch of The Three-year Action Plan for the Construction of Harmless Treatment Facilities for Household Waste in Hainan Province, together with the population growth and economic development within the region, Tunchang Government decided to launch Tunchang Project Phase I and II together, which means phase I and II of the project will be built, put into operation and transferred to the local government at the same time. The service area has been adjusted to cover four counties, namely Tunchang, Ding'an, Qiongzhong and Chengmai counties.

Tunchang Project has a designed daily waste processing capacity of 600 tonnes in total and it is expected to generate approximately 80 million kWh of green electricity annually. The project will be equipped with two 300 tonnes/day mechanic grate furnaces and one set of 15MW turbine power generator. The gas emissions will comply with The Letter of Hainan Ecology and Environment Bureau on Opinions regarding Pollutant Emission Standards of New and Expanded Household Waste-to-energy Projects (No.991 Letter on Environment, Hainan Province [2018]), with the daily average level of online monitored gas emissions superior to the Euro 2010 Standard.

Mr. Wang Tianyi, CEO of Everbright International, said, "Hainan Province recently rolled out policies on the reuse and harmless treatment of waste in the province, such as The Medium- to Long-term Special Plan for Household Waste-to-energy Sector in Hainan Province and The Three-year Action Plan for the Construction of Harmless Treatment Facilities for Household Waste in Hainan Province (2018-2020). Following the securing of Sanya Waste-to-energy Plant Expansion Project and the signing of the supplementary agreement on Tunchang Project, the Group's total daily waste processing capacity in Hainan Province has increased to 4,150 tonnes, and the Group's projects in the province are expected to provide harmless treatment, reuse and reduction of over 1.5 million tonnes of household waste in total.

Mr. Wang Tianyi emphasised that, "Everbright International will proactively carry out preparatory works relating to Tunchang Project and also ensure smooth progress of project construction works. It will adhere to the ‘Pursuing Excellence and Close to Zero Discharge' operation philosophy during project construction and management processes, with an aim to develop Tunchang Project into a county-level demonstration project in Hainan Province, and to safeguard the beautiful ecological environment of the province."