investment in a boo project in shan’xi lvliang
the company and asia water technology ltd.(“asia water”) has jointly incorporated a project company, lvliang xinya water service co. ltd.(“lvliang xinya”), involving a water supply solution from wenyu river to lvliang city.
lvliang xinya has a registered capital of rmb98million, among which the company will invest rmb40million for a 40.82% stake and asia water invest rmb58million for a 59.18% stake.
the project typifies a build-own-operate (“boo”) contract. it involves providing a water supply solution of up to 20 million tonnes per year (with a long-term capacity of 40 million tones per year).this entails the construction of a 60 km piping system, 4 reservoirs with a total capacity of 40,000 tonnes, a control and automation system, pump rooms and other facilities necessary for the supply of water to lv liang city in shanxi province.
