Jinjiang Environment secures its first overseas waste management project in India
(SINGAPORE, HONG KONG 17 April 2017) – SGX-listed China Jinjiang Environment Holding Company Limited (“Jinjiang Environment” and together with its subsidiaries, the “Group”), a leading waste-to-energy (“WTE”) operator in the People’s Republic of China (“PRC”), today announced it has secured its first waste management project in India, a first outside its home base.
The project in Lucknow City (“Lucknow Project”), Uttar Pradesh, India, to be undertaken by Ecogreen Energy Private Limited (“Ecogreen Energy”), an indirectly-held subsidiary of Jinjiang Environment, has an estimated investment amount of approximately RMB 300 million (equivalent to approximately S$60.80 million based on the closing exchange rate of S$1.00 : RMB4.9343 as at 13 April 2017), and an initial cash outlay of approximately INR 241.3 million (equivalent to approximately S$5.23 million based on the closing exchange rate of S$1.00 : INR 46.1705 as at 13 April 2017) which will be fully settled from the Group’s internal resources.
Under the contract, Ecogreen Energy will complete the construction of the Lucknow Project and will have the exclusive right to provide waste treatment services in Lucknow City. It will operate and manage the project under the build-operate-transfer model for the concession period of approximately 30 years, and then transfer ownership back to the relevant local authorities at the end of the concession period.
Expected to commence in April 2019, Ecogreen Energy will operate both a waste pre-treatment facility with a designed waste pre-treatment capacity of 1,500 tonnes per day, a waste-to-energy facility as well as a landfill. Its services provided will include:
- door-to-door collection and transportation of municipal solid waste from households and businesses, with waste disposal fees charged in accordance with government regulations and collected by the Group on behalf of the relevant local authorities;
- pre-treatment and mechanical separation of municipal solid waste;
- treatment of biodegradable waste components by way of, among others, composting;
- recycling and sale of reusable materials;
- production and sale of refuse-derived fuel1 resulting from the treatment of non-biodegradable waste components;
- power generation from the combustion of refuse-derived fuel; and
- operation and maintenance of a landfill for residual inert waste components.
Currently, Lucknow City, the capital city of Uttar Pradesh, has a waste processing volume of at least 1,400 tonnes per day, including delivery and processing.
Measuring 247.7 square kilometres in area, Lucknow City has six districts and a population of 4.5 million with annual growth at approximately 125,000 people. Uttar Pradesh is India’s most populous state with the second highest gross domestic product in the country.
Commenting on the Lucknow Project, Ms. Wang Yuanluo, Executive Chairman and Chief Executive Officer of Jinjiang Environment, said: “The Lucknow waste management project, being our first overseas venture, marks an important milestone in our bid to expand our business and bring our WTE expertise outside the PRC. India is one of our key growth markets and kicking off our first project in Uttar Pradesh, India’s most populous state, positions us well to grow our business in India. As the leading WTE operator in the PRC, we are well-equipped with the technical knowledge and operational experience to kick-start our overseas expansion in markets like India and Southeast Asia. We will also leverage on our status as a listed company on the Singapore Exchange to harness new opportunities with the aim of growing our business further and maximising long term value for our shareholders.”
Jinjiang Environment had acquired a 99.98% shareholding in Ecogreen Energy in March 2017 with the intention to use it as a platform to explore potential business opportunities in India.
1 Refuse-derived fuel is a fuel made from waste through a series of complex procedures including sorting, shredding, separation, additive feeding, dehydration and molding.
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ABOUT JINJIANG ENVIRONMENT
Jinjiang Environment (中国锦江环境控股有限公司) is the first private WTE operator in the PRC and continues to be the leading WTE operator in the PRC with its self-developed differential-density circulating fluidised bed technologies. The Group’s business primarily focuses on the planning, development, construction, operation and management of WTE facilities in the PRC. It operates 19 WTE facilities in 12 provinces, autonomous regions and centrally-administered municipalities in the PRC, and has an additional four WTE facilities under construction and 15 WTE facilities in the preparatory stage for construction or further expansion. The facilities in operation have a total installed waste treatment capacity of 27,430 tons/day. The estimated total installed waste treatment capacity of all the WTE facilities, when fully completed and acquired, will be approximately 47,490 tons/day.
This press release should be read in conjunction with the announcement released on SGXNET on 17 April 2017. This press release is for information only and may contain forward-looking statements that involve assumptions, risks and uncertainties.