CHINA EVERBRIGHT WATER has secured a Rmb 2.585 billion public-private partnership project to transform Zhenjiang (Jiangsu Province) into a “sponge city”.
"Zhenjiang is the nation's model city for environmental protection. Its economy is well developed and it has a favorable investment and commercial environment. Our involvement in the Zhenjiang Sponge City demonstration project will pioneer the way for healthy investment returns on national sponge city projects."
- Executive Director Wang Tianyi (NextInsight file photo)
“This project win is a milestone for our foray into the sponge city construction market,” said Executive Chairman Wang Tianyi.
The high profile government initiative seeks to address China’s problems with flooding and water shortage.
Its urban drainage infrastructure has lagged behind the rapid urbanization, with more than 200 PRC cities affected by floods in 2013.
A second problem is shortage of clean water sources: Over 60% of China’s underground water and one third of its surface water had been rated by its environment ministry in 2015 as unfit for human contact.
The Group will form a 70%-owned joint venture project company to construct, renovate and operate the Zhenjiang Sponge City Project. Zhenjiang Waterworks Corporation, an indirect wholly-owned subsidiary of Zhenjiang municipal government, will hold 30% in the joint venture.
The project site area covers 22 square km of land and 11.5 square km of water. The project’s total investment amount has been estimated at RMB 2.585 billion. The government will contribute RMB 1.2 billion in the form of subsidies. The balance monies of RMB 1.385 billion will be contributed by the joint venture project company.
|♦ Zhengrunzhou wastewater treatment plant
|Waste water treatment expansion project
|Advanced waste water treatment facility
The Zhenjiang Sponge City Project includes the following works.
(i) Ecological restoration, repair, low impact development and renovation of pipeline networks, flooding and waterlogged areas within the project area (to be funded by the government subsidy).
(ii) Construction and operation of the Zhengrunzhou wastewater treatment plant (to be funded by the project company).
The project company will be responsible for providing engineering management services in relation to the government funded portion and for the construction and operation of the project company funded portion. A 23-year concession period has been granted to the project company for the operation of the Zhenjiang Sponge City Project.