BEIJING, November 29, 2011 /PRNewswire-Asia-FirstCall/ -- Tri-Tech Holding Inc. (Nasdaq: TRIT), which provides turn-key water resources management, water and wastewater treatment, industrial safety and pollution control solutions, announced today that its subsidiary, Tri-Tech (Beijing) Co. Ltd. (Tri-Tech Beijing), was awarded a concession build-own-operate-subsidy-transfer (BOOST) municipal infrastructure project from Buerjin County Government in Xinjiang Uygur Autonomous Region (Xinjiang). The scope of the project covers construction and operation of the water treatment and water supply systems, as well as wastewater collection and treatment systems for Yelaman Township in Buerjin County. Tri-Tech's total investment in the project is expected to be approximately $3.15 million. Tri-Tech Beijing's majority-owned subsidiary will own and operate all assets for up to 30 years.
To invest, build and operate the project, Tri-Tech Beijing established Buerjin Tri-Tech Industrial Co. Ltd. (Tri-Tech Buerjin), a joint venture with the Buerjin government in which Tri-Tech Beijing holds 80% of its equity, the Buerjin county government holds 10% of its equity, and an unrelated third party holds the remaining 10% of its equity. Upon the completion of construction, Tri-Tech Buerjin is entitled to all assets of the project and proceeds from independently operating the systems and facilities associated with the project for up to 30 years under a concession agreement. In addition, Buerjin's government is expected to award Tri-Tech Buerjin a monetary subsidy of 60% to 65% of its committed investment for construction of the project. Tri-Tech Buerjin is required to forfeit its rights to all project-related assets to Buerjin government when the 30-year concession period expires.
Mr. Gavin Cheng, President of Tri-Tech Holding said: "The Yelaman project is our first BOOST municipal infrastructure project. BOOST projects offer an exciting opportunity to our company, because we are able to receive substantial subsidies to reduce the cost to build the project. We expect that the project will be completed by October 2012. Once the project is built, we will then be able to operate the municipal water supply and sewerage systems for the next thirty years. The BOOST model lets us participate in the long-term upside presented by equity ownership in the project and a 30 year operating relationship. Tri-Tech's experience in the industry allows it to provide advanced technologies, leading engineering and experienced personnel to maximize operating stability of the project and maintain project-related assets. We believe this BOOST project will help to strengthen our competitiveness and raise our visibility in the market."
Mr. Warren Zhao, CEO of Tri-Tech Holding commented: "During the 12th-Five Year Plan period, the Chinese government is increasing its spending and political influence in infrastructure construction in Xinjiang. Spending in urban infrastructure is expected to grow steadily for a long period. In the next five years, investments in infrastructure including water conservation facilities will exceed 165 billion RMB, including funding from other provinces. Based on these spending projections, Xinjiang has seen increases in infrastructural constructions such as municipal water and wastewater facilities, water conservation projects, highways and airports.
"Our commitment to invest in the Yelaman project was welcomed and supported by the Buerjin government. We believe the BOOST project model as implemented in our Yelaman project will demonstrate the model's efficiency in promoting commercialization for local governments that focus on rapid economic growth on the basis of planned infrastructure development. With the Yelaman project as an initiative, Tri-Tech will continue to focus strategically on the urban infrastructure market in Xinjiang to pursue opportunities in construction, operation and investment and to seek more water- and wastewater-related business there."
About Tri-Tech Holding Inc.
Tri-Tech designs customized sewage treatment and odor control systems for municipalities and private sectors in China and international markets. These systems combine software, information management systems, resource planning and local and distant networking hardware that includes sensors, control systems, programmable logic controllers, supervisory control and data acquisition systems. The company also designs systems that track natural waterway levels for drought control, monitor groundwater quality and assist the Chinese government in managing its water resources. The company is also moving into the industrial pollution control market. Tri-Tech owns 27 software copyrights and six technological patents, and employs 300 people. Please visit http://www.tri-tech.cn for more information.
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include references to the successful completion of the project referenced herein and other statements concerning plans, objectives, goals, strategies, future events such as project payments, results of marketing efforts or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Investor Relations Contact: | |
Mr. Craig T. Stewart | |
North Coast Advisors Inc. | |
Rochester, N.Y. | |
+1 (585) 388-3340 | |
