Diao Bing Shan Wastewater

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In September 2003, a consortium of Dayen Environmental (Dayen) of Singapore and the state-owned SAC General Products (SAC) of China was awarded a 23-year contract for the construction and operation of a 30,000 cubic meters per day capacity wastewater treatment plant in Diao Bing Shan city, Liaoning province. Shenfei Dayen Environmental Ltd. (Shenfei Dayen) was the joint venture project company, created in May of 2003, in which Dayen held a 51% stake and SAC the remainder. SAC was a division of the state-owned Shenyang Aircraft Corp. Group which was involved in the development of fighter aircraft in China and was diversifying into non-aero businesses, including the water industry. The total cost of the project was US$8.46 million, financed by a RMB 40 million state loan and the remainder by Shenfei Dayen. Under the contract, the local government of the Diao Bing Shan City has agreed to paid Shenfei Dayen 0.80 yuan per cubic meter of wastewater treated. The city government began making its first payments in 2004, with Shenfei Dayen receiving US$1.2 million. None None