Memstar Technology says it has secured four Transfer-Operate-Transfer (TOT) projects in China to treat municipal and industrial wastewater with a total capacity of 200,000 cubic metres/day. The concessionary period covered under the TOT arrangement is between 20 to 30 years. The total project value is estimated to be RMB225 million ($44.7 million).

The four plants are located in Hebei, Henan and Fujian provinces. The plants are currently at the design capacity of 125,000 cubic metres/day and will be expanded up to 200,000 cubic metres/day after the completion of transfer of the TOT arrangement.

Memstar will form a Joint Venture (JV) company with strategic investors to undertake the 4 TOT projects and will own 60% stake in the JV company.

The projects are expected to be funded using a combination of internal resources and bank borrowings. The projects expansion is expected to be completed by the end of 2010 and will contribute positively to our revenue for the financial year ending 30 June 2011.