On March 9, 2021, Beijing Capital Group issued an external investment announcement. The announcement indicated that Beijing Capital Group plans to establish a joint venture project company Zhongshan Huichuang Ecological Governance Operation Co., Ltd. with China Construction Eighth Engineering Bureau and Tianjin Municipal Institute.

The project company is responsible for the survey of the first tender section of the EPC+O (reconnaissance design, procurement, construction + operation) project of the comprehensive improvement project of non-standard water bodies in Zhongshan City (Qianshan River Basin, Qijiang River Basin-Banfu Town, Nanlang Basin) The management and coordination of design, construction, operation and maintenance projects, with a registered capital of 1 million yuan. Beijing Capital invested RMB 99,800 with its own funds, with a shareholding ratio of 99.98%; China Construction Eighth Engineering Co., Ltd. and Tianjin Municipal Engineering Institute each contributed RMB 10,000, each holding 0.01% of the equity of the project company.

Brief Introduction of Water Comprehensive Improvement Project in Zhongshan City

The first tender section of Zhongshan City’s non-standard water comprehensive improvement project (Qianshan River Basin, Qijiang River Basin-Banfu Town, Nanlang River Basin): project inspection and repair pipelines of 248km, new sewage interception pipes with a total length of 442km, including sewage interception in Sanxiang Township The pipe length is 217km, the sewage interception pipe in Tanzhou town is 225km long, and the maximum pipe diameter is DN1000. The maximum drainage flow of the newly-built and technologically upgraded pumping station of the project is about 20m3/s (1.728 million m3/d). Newly built 1 sewage lifting pumping station, 18 integrated treatment facilities, 2 integrated aquaculture wastewater facilities, 1 sludge treatment plant, and 5 two-way supplementary water pumping stations.

On December 15, 2020, Beijing Capital Group, China Construction Eighth Engineering Bureau and Tianjin Municipal Engineering Institute won the bid for the project. The winning price was 3.879 billion yuan, of which construction and installation engineering costs (including equipment purchase costs) were about 3.325 billion yuan, and operation and maintenance costs. About 453 million yuan, the design fee is about 67.74 million yuan, and the survey fee is about 32.85 million yuan.

Division of responsibilities within the consortium

Beijing Capital Group is mainly responsible for the management and coordination of the entire project cycle and the operation and management of the project; Tianjin Municipal Institute is responsible for the engineering survey and design of the project; China Construction Eighth Engineering Bureau is responsible for the general contracting of the project. The project cost is about 3.325 billion yuan, 60% of the project completion acceptance payment, the remaining 40% is linked to the water quality performance standard, and the water quality standard is paid quarterly within 5 years of the operation period. The water quality standard is linked to the construction and installation fee, design fee, and survey fee. The duration of project cooperation is 96 months (including 36 months for project construction and 5 years for operation and management).

The project is a key project in Guangdong Province and a landmark water environment light asset project in the industry. The project funds have been included in the financial budget of Zhongshan City. It is an important part of the comprehensive management system of Zhongshan's black and smelly water basin. The project has obvious resource advantages. In addition, Zhongshan City is located in the Greater Bay Area. The implementation of this project will positively promote the development of markets in Guangdong Province and the Greater Bay Area.

China Construction Eighth Engineering Co., Ltd. will join hands with Beijing Capital to achieve win-win cooperation

Beijing Capital has rich experience in the operation and management of Zhongshan Water Environment EPCO projects. Beijing Capital has won the bids for 4 water environment EPCO projects in Zhongshan City, with the winning bid amount exceeding 13 billion yuan and operating expenses of about 2 billion yuan. As one of the first listed companies engaged in environmental protection investment, Beijing Capital Group took the lead in implementing the market-oriented reform of the domestic water and environmental protection industry, actively promoting the development of environmental protection, and committed to becoming a trustworthy public service provider for the ecological environment. After more than 20 years of development, the business has expanded from urban water affairs and living environment improvement to comprehensive water environment management, green resource development and energy management. It has been deployed nationwide and expanded overseas. It has become the world's fifth largest water environmental operating company.

It is not the first time that China Construction Eighth Engineering Bureau has been involved in environmental protection/water environment comprehensive treatment projects. According to statistics, China Construction Eighth Engineering Bureau has won many environmental protection projects in 2020.

I believe that with the establishment of the project company, Beijing Capital, together with China Construction Eighth Engineering Bureau and Tianjin Municipal Institute, will be able to construct and operate the comprehensive improvement project of non-compliant water bodies in Zhongshan City, which will help them to open up the market in Guangdong Province and the Greater Bay Area. Active promotion. Editor/Sang Xiaomei, Design/Xia Changwang