SINGAPORE (Jan 18): SIIC Environment Holdings announced that its 92.15%-owned subsidiary, Shanghai Fudan Water Engineering Technology, has signed a build-operate-transfer (BOT) service concession agreement with the Department of Housing and Urban-Rural Development of Shen county in Shandong province.

The agreement is in relation to the construction and development of a RMB 600 million ($120.1 million) waste incineration project that will employ grate incineration technology to convert waste to energy, as well as generate electricity for Shen county.

This waste-to-energy (WTE) facility will be located at the Circular Economy Industrial Park in Shen county and is expected to be developed in phases, with a total design capacity of 1,200 tons/day.

Phase one of this project is expected to cost RMB 360 million, with a design capacity to manage 700 tons/day. The waste management fee has been set at RMB 70/ton.

The BOT service concession agreement is for a total of 30 years, excluding the construction period. This project is expected to contribute to the group’s performance positively going forward.

As at 2.30pm, shares in SIIC Environment are trading 3.45% higher at 30 cents.