成都市兴蓉环境股份有限公司(股票代码000598)

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Winning Bid of the PPP Project of Ningxia Ningdong Base for Comprehensive Utilization of Water Resources

Number of visits: Date:2016-11-04

  In the afternoon on November 3, the company signed a Joint Venture Agreement with Ningxia Ningdong Development Investment Co., Ltd. at the 16th Western China International Fair with a theme of “Western China: a Global Opportunity”. This is an important and humble move for the company to carry out the spirit set forth by the 7th Plenary Session of the 12th CPC Chengdu Municipal Committee, to implement two-way opening up and “going out” strategy, to support economic consolidation in western China, and to drive coordinated regional development. It is also a major breakthrough in seizing development opportunities to quicken market expansion and build an internationally well-known enterprise of its kind.

  An Ancillary Project to State-Level Base for National Energy Strategy

  Ningdong Energy and Chemical Industry Base (hereinafter referred to as “Ningdong Base”) in Ningxia Hui Autonomous Region is a key national development zone approved by the State Council, an important large-scale national coal base, a major base for the “west-to-east electricity transmission” project, a coal-to-chemical industry base, and a demonstration zone of the circular economy. The Base, the home to abundant resources such as coal, water, and land, is a state-level base for national energy strategy that has housed over ten energy exploitation-targeted enterprises including Ghenhua Group, China Huadian Corporation, and Huaneng Group. During the Ningdong project bidding, the company surmounted its strong contenders like TTECC, Shanghai Tongji Science & Technology Industrial Co., Ltd., China Railway First Group Co., Ltd., and obtained 30 years of franchising to invest, finance, construct, operate, and manage this PPP project. Serving as an ancillary project to the infrastructure construction of Ningdong Base, it consists of three completed projects including the first-stage project of sewage collection and reuse in core areas of Ningdong Base, drainage networks of Ningdong Base, and sewage treatment of area A in the waterside comprehensive industrial park and the first-stage project of reclaimed water recycling plant. In addition, there are four projects under construction, primarily the first-stage project of sewage plant in the coal-chemical industrial park in Ningdong Base, rural land reclamation project of Yuanyanghu Lake area in Ningdong Town, the first-stage project of sewage plant in the new chemical materials developing park, the first-stage project of the Nanhu reclaimed water plant of Ningdong Base, and pipe network project of water transport and distribution of Nanhu reclaimed water plant. With a total investment estimated at RMB 1.2053 billion, this project acting as the first national-level PPP project approved by the Ministry of Finance has been included into the second batch of PPP demonstration projects published by the Ministry of Finance.

  A Supporting Project for Industrial Economic Development and Rejuvenation

  Industry lies at the heart of the economy, and its benign and rapid development exerts considerable influence on the prosperity of a city, a country, even a nation. Along with the revival of the industrial economy, the discharge and management of wastewater shoulders an enormous amount of responsibility in production and operation processes for industrial enterprises. Today, environmental protection and pollution control issues are the focus of all sectors of society. Specific requirements and standards for industrial effluents treatment and reuse have been stipulated in the newly amended Environmental Protection Law of the People’s Republic of China, Law of the People’s Republic of China on Prevention and Control of Water Pollution, and the State Council issued Water Pollution Prevention and Control Action Plan. Effective governance of industrial sewage is not only related to the successful realization of pollutant discharge reduction and environmental protection goals, but also to the sustained development and further growth of industrial enterprises. The PPP project regarding the comprehensive utilization of water resources was designed primarily to provide industrial wastewater treatment and water reuse services to industrial enterprises within Ningdong Base, sustaining and safeguarding their normal operations and Base construction, as well as fueling Ningxia’s industrial economy. By leveraging the opportunities brought by the Ningdong PPP project, the company will continue to promote a third party management mode for industrial wastewater and seek new methods of development for funds, technology, management and talents, making substantive progress in developing and boosting the industrial economy.

  A Wastewater Treatment-Focused Project to Complete the Industrial Chain

  The company and its subsidiary drainage-handling firms and sewage treatment plants under construction can treat wastewater on a scale of 3 million tons per day. Boasting 30 years of experience in operating and managing domestic sewage treatment, the company was one of the earliest sewage treatment companies to qualify for the Grade I Certificate for Pollution Control and has delivered multiple batches of technical solutions to more than 10 sewage treatment plants across China. In addition, it reigns supreme thanks to its management ability and technological strength and has been granted titles like “Advanced Unit for Operating and Managing Sewage Treatment Plant in China” and “National Top Ten Operation Unit”.

  In view of the overlaps in technological process, equipment selection, operation procedures, and parameter controls when treating industrial wastewater and domestic sewage, the company believes that it is well-qualified for industrial wastewater treatment with its current technologies after the sufficient technical analysis and confirmation from the Ningdong project. Winning the bid filled gaps for the company in wastewater treatment and aided its industrial chain to become more integrated, creating a new driving force for profits and growth.

  A Synergy-Creating Project to Enlarge Business Scales across All Dimensions

  Running a business is like sailing a boat against the current, which requires steady forward momentum to prevent being driven back. Only through constant struggles and endeavors and initiating taking on obstacles, can a company climb to a dominating position in a fierce market, creating an industry-leading brand with a global reputation. Instead of being satisfied with its existing achievements, the company is always never static, always “going out”, and winning the Ningdong PPP project this August followed a profitable endeavor in the eastern market by a mere three months. Meanwhile, it also maintains its presence on both the domestic and international stage. As an important state-owned enterprise located in Chengdu, and the Sichuan Basin in Western China, the company has surpassed geographical restrictions and resource shortages to target the international arena for wide-ranging and high-level competition and cooperation. It is also a player in global resource integration to quicken its pace in establishing joint-venture partnerships with Pakistan, India, Germany, and the United States. Taking Chengdu as its base, the company strives to realize all-sided coordinated development with national influence and business that spans the globe.

  The success of this bid will broaden the company’s financing channels, raise its credit rating, and bring richer PPP project-based models, performance and experience, enhancing its comprehensive strength.

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