Leader Environmental Technologies has secured a public-private partnership project worth RMB114.75 million ($24.5 million) in China’s Bazhou city in Hebei province.

The project involves the design, construction and operation of a sludge treatment plant that treats some 120 tonnes a day.

The project also involves the recycling of the treated sludge into bricks for a concessionary period of 30 years. The minimum tariff payment for the project is guaranteed and has been included in the approved annual finance budget of the province.

For the project, the company will form a subsidiary with other shareholders, Anweijinda and Tianjin Municipal Engineering Design & Research Institute to invest in the project.

The three companies will hold stakes of 99.98%, 0.01% and 0.01% respectively within the subsidiary.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/news/contracts/chip-eng-seng-secures-contract-worth-675-mil-through-55-owned-jv-company?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Chip Eng Seng secures contract worth $67.5 mil through 55%-owned JV company</a>

The investment in the project will be funded using the proceeds from the company’s rights issue and bank loans.

According to the filing posted by the company, it will design and construct the treatment facility using its proprietary technologies such as the integrated continuous thermal hydrolysis and pyrolysis.

The subsidiary will be operating the plant to earn a stable and recurring income for the next 30 years.

“With China pushing the goals to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060, sludge treatment and reuse will be the trend in addressing carbon reduction work which has become the priority of local government,” says Li Li, Leader Environmental Technologies’ CEO.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/news/contracts/keppel-om-signs-agreements-worth-135-mil-utilisation-two-jackup-rigs?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Keppel O&M signs agreements worth $135 mil for utilisation of two jackup rigs</a>

“China’s sludge treatment market has exceeded RMB50 billion since 2017 and is expected to increase at a rate of 10% per annum. We see great market potential for sludge treatment and will continue our efforts to ride on this sludge treatment segment of our business,” Li adds.

The construction phase of the project is scheduled to be completed within one year and will contribute positively to the revenue of the company for the financial year ending Dec 31, 2022.

Shares in Leader Environmental Technologies closed 0.3 cent higher or 4.48% up at 7 cents on Jan 6.

Leader Environmental Technologies clinches $24.5 mil contract to treat municipal sludge in China

DBS unfazed by EC World REIT's surprise compensation payment

Asia’s Spac hopefuls have nowhere to turn as IPO market shuts

ComfortDelGro has more room to move thanks to the reopening

Can automation help your company fight the Great Resignation?

Leader Environmental Technologies clinches $24.5 mil contract to treat municipal sludge in China

Related Stories

Highlights

China economy czar Liu He vows support for tech firms after crackdown

Related Stories

Leader Environmental Technologies triggers SGX query following ‘unusual volume movements’ in shares

Leader Environmental Technologies chairman and deputy CTO facing insider trading probe

Leader Environmental Tech enters into JV with Chinese state-owned enterprise to provide environmental solutions