Everbright Water Secures Huai’an Lianshui Konggang Industrial Park Industrial Waste Water Treatment Plant EPCO Project in Jiangsu Province, Marking Further Breakthrough in Asset-light Business

Singapore and Hong Kong, 5 June 2023 China Everbright Water Limited (“Everbright Water” or the “Company”; stock codes: U9E.SG and 1857.HK) (中國光大水務有限公司), an environmental protection company focusing on water environment management, is pleased to announce that a consortium led by Everbright Water (the “Consortium”) has secured Jiangsu Huai’an Lianshui Konggang Industrial Park Industrial Waste Water Treatment Plant (“Lianshui Konggang Industrial Park Plant” or the “Plant”) EPCO (Design-Procurement-Construction-Operation) Project (“Lianshui Konggang Industrial Park EPCO Project” or the “Project”). In connection therewith, Everbright Water has signed an engineering, procurement and construction (“EPC”) contract with all the other members of the Consortium and Lianshui Pujing Konggang Technology Park Development Company Limited (“Lianshui Konggang Technology Park”); and an operation and management agreement with Lianshui Konggang Technology Park. Securing the Project marks yet another outstanding achievement of Everbright Water in its expansion effort in the industrial waste water treatment field, as well as the Company’s first implementation of the environmental protection business based on the EPCO model.

Lianshui Konggang Industrial Park EPCO Project will provide a full-fledged service covering design, procurement, construction and operation for phase I of Lianshui Konggang Industrial Park Plant. According to the relevant agreement / contract under the Project, Everbright Water (as the leader of the Consortium) will be responsible for leading, coordinating and organising all works during the implementation of the Project. The Company will also be responsible for the provision of operation and management services of the Plant and be entitled to collect the waste water treatment service fee with an operation period of five years, which is subject to a renewal of another three years upon expiry. The other members of the Consortium will be responsible for the design, procurement and construction in relation to the Project, of which the EPC contract value amounts to approximately RMB271 million (which does not include the waste water treatment service fee which will be charged and received by Everbright Water separately).

As one of the primary development platforms of Lianshui Economic Development Zone, Lianshui Konggang Industrial Park is marked to be developed as an integrated hub for multiple advanced manufacturing industries such as aircraft manufacturing and services, modern logistics industries, biomedicine, new materials and electronic information as well as bonded logistics. The construction of Lianshui Konggang Industrial Park Plant is to ensure the efficient and safe treatment of industrial waste water within the park. With a total designed industrial waste water treatment capacity of 60,000 m³/day, Lianshui Konggang Industrial Park Plant will be built in two phases. Phase I of the Plant has a designed industrial waste water treatment capacity of 30,000 m³/day. Among the water quality indicators of the Project, COD_Cr, NH₃-N and TP will comply with the Environmental Quality Standards for Surface Water (GB 3838-2002) for Category IV, with TN not exceeding 10 (12) mg/L, while the other major indicators will comply with the national Grade 1A standard according to the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB 8918-2002).

Mr. Hu Yanguo, Executive Director and Chairman of Everbright Water, said: “Securing Lianshui Konggang Industrial Park EPCO Project marks Everbright Water’s first project of this type since the Company began actively exploring new business directions and promoting the development of both asset-light and asset-heavy businesses. The adoption of the EPCO model will help the Company to ‘go light’ and export its rich experience and strengths in operations management, further enriching its experience in the asset-light business.”

Mr. Hu Yanguo further added: “The phase I of Lianshui Konggang Industrial Park Plant will be carried out in an integrated manner. Unlike the traditional EPC model that prioritises construction over operation, such EPCO model covers the back-end operation and is an extension of the EPC model. It is expected to effectively improve the Project’s construction and operation efficiency, and better ensure the Project’s functionality and effectiveness. The planning and application of the EPCO model in Lianshui Konggang Industrial Park also represents an important achievement for enterprises and local governments to explore and apply new models in the fields of public utilities and environmental management. It will help to further strengthen the demonstration effect of the market-oriented governance of industrial parks, and safeguard Lianshui Konggang Industrial Park in terms of environmental management, industrial investment and attraction of talent.”