Goldis China venture
Filed Under (Business News) by Webmaster on 28-07-2009
Tagged Under : china, Goldis, Goldis Water
Goldis Bhd’s wholly-owned subsidiary Goldis Water Pte Ltd expects to recoup the capital outlay for its newly clinched waste water treatment plant project in China in five to eight years, said Goldis Water director Leong Kok Chi.
According to Leong, the project would need an investment outlay of some RM13.8mil, financed via internal funds and bank borrowings.
Goldis Water yesterday signed a build, operate and transfer (BOT) concession for a waste water treatment plant in Zou Cheng Industrial Park in Shangdong, China, with Zou Cheng Industrial Park Management Committee via its unit Zoucheng Xincheng Waste Water Co Ltd.
The 25-year concession is the third waste water treatment concession in China for the Goldis group.
It already operates two other BOT waste water treatment concessionaires in Shangdong and Jiangsu provinces which are already in operation and contributing to group earnings.
“The first BOT was completed in 2007 while the second was only finished in the middle of last year. Both are contributing positively to cash flow currently,” Leong said.
Zoucheng Xincheng Waste Water director Lee Choon Kok said the total capacity of the waste water treatment plant was 80,000 cu m per day with an initial capacity of 20,000 cu m per day.
“Construction is expected to start next month with the plant to be commissioned by the end of next year,” he said, adding that it would take three to four years to reach maximum capacity.
As for other contracts, Leong said the group was following up on a couple of similar projects in China and was “talking to several parties at the moment”.
“China will be our focus for the time being in terms of waste water treatment projects. The two provinces, Shangdong and Jiangsu, are where we have started to build our base,” he added.
Leong noted that there was tremendous growth opportunities in the water and waste water treatment industry in China as it was relatively underdeveloped and new compared with developed countries.
Zou Cheng City is said to be considering another three waste water treatment projects with daily capacities of 60,000, 80,000 and 100,000 cu m respectively.
