Corporate | 20 April 2009 10:39
ZhongDe Waste Technology AG / Contract
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ZhongDe Waste Technology AG announces signing of two large-size BOT
projects
1,050 tons per day municipal waste incineration plant with
electricity generation for Kunming
1,000 tons per day municipal waste incineration plant with
electricity generation for Xianning
Stable cash inflows guaranteed by electricity sales
Total investment amounting to approx. RMB 800 million (EUR 89
million, 1 EUR=8.9884 RMB)
Hamburg, 20th April, 2009 -ZhongDe Waste Technology AG [Ticker ZEF]
announced today that ZhongDe Group ('ZhongDe') has signed two binding
agreements for two BOT projects (Build - Operate -Transfer) in Kunming,
Yunnan province of PRC, and Xianning, Hubei province of PRC. The daily
waste disposal capacity of Kunming project is 700 tons in its first phase
and 1,050 tons in the second phase. The Xianning project has a daily waste
disposal capacity of 500 tons in its first and 1,000 tons in the second
phase. Both Kunming and Xianning project guarantee stable cash inflows from
electricity sales.
Kunming is the capital city of Yunnan province with approximately 6.02
million inhabitants, Xianning is a city with 2.86 million inhabitants
located in the southeast of Hubei province. Both project agreements
comprise the construction and operation of a large-size municipal waste
incinerator with electric power generation, adopting the grate furnace
incineration technology. After the contracted operating time, the Cities of
Kunming and Xianning will take over the plants. The investment volume for
each project amounts to approximately RMB 400 million (EUR 44.50 million, 1
EUR=8.9884 RMB), and the concession period is 30 years. 50%-70% of the
total investment will be debt financed from banks
The Kunming waste disposal fee is RMB 81 (EUR9.01, 1 EUR=8.9884 RMB) per
ton, the waste disposal fee of Xianning project is RMB 65 (EUR7.23, 1
EUR=8.9884 RMB) per ton. Fees will be paid on a monthly basis by the
respective local municipalities in charge and adjusted to the inflation
index on an annual basis. With these two agreements, ZhongDe will replace
the previous Xinjiang project and Lianshui project due to better returns on
investment.
Zefeng Chen, founder and CEO of ZhongDe Waste Technology AG, comments: 'We
continue to implement our key strategy to expand the value chain into the
operation of waste incineration plants. With the signing of the Kunming and
Xianning BOT agreements, we are glad to announce to our investors another
milestone in expanding our business to generate recurring revenues and to
strengthen our market position in the segment of municipal waste disposal.
We are convinced that the BOT business will generate attractive returns for
our shareholders. Given our market position, our existing technologies and
our experience, we are well-positioned for successfully engineering and
profitably operating of these kinds of large-size waste to energy plants.'
About ZhongDe Group:
ZhongDe Group designs, manufactures and installs pyrolytic, grate and
rotary kiln waste incinerators for the disposal of solid municipal,
industrial (including hazardous) and medical waste, as well as complete
sets of incineration plants with electricity generation.
Since 1996, ZhongDe Group has installed approximately 190 waste
incinerators in about 13 provinces, and more than 130 waste incinerators in
the last three financial years alone. Its waste incinerators are
principally constructed for small and midsized Chinese cities in developed
areas of the People's Republic of China, as well as for operators of
medical disposal centres in the hospital and healthcare industry. ZhongDe
Group is one of the leading suppliers of small and midsized solid waste
incinerators in China, supplying state-of-the-art products.
Sylvia Faber
Citigate Dewe Rogerson GmbH
Hanauer Landstraße 175-179
60314 Frankfurt am Main
Tel: 0049-69 90 500-100
Fax: 0049-69 90 500-102
E-Mail: Sylvia.Faber@citigatedr.de
Internet: www.citigatedr.com
20.04.2009 Financial News transmitted by DGAP
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Language: English
Issuer: ZhongDe Waste Technology AG
Stadthausbrücke 1-3
20355 Hamburg
Deutschland
Phone: +49 40 37644 745
Fax: +49 40 37644 500
E-mail: cornelia.dieker@zhongdetech.de
Internet: www.zhongdetech.de
ISIN: DE000ZDWT018
WKN: ZDWT01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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