Reconstruction and upgrade of Henghe sewage treatment plant in Fuping County, Baoding City

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The project involves the reconstruction and upgrading of the Henghe Sewage Treatment Plant and the second-stage construction project of Fuping County, Baoding City, Hebei Province of China. The plant's capacity will be 16,000 cubic meters/day. The SPV is called Fuping Hengrun Ecological Technology Co., Ltd and owned by 2 sponsors: state-owned Fuping County Henghe Sewage Treatment Plant with 36% stake and Hebei Zhongbao Construction Group Co., Ltd with 64% stake. The project cost amounts to CNY 74.5 million or $ 10.8 million. The project is structured under BOT model for a concession period of 30 years (of which construction period is 1 year and operation period is 29 years). The return mechanism is a feasibility gap subsidy. The project implementation agency is the Fuping County Housing and Urban-Rural Construction Bureau. The project company will hand over the facilities to the agency or any other government-designated department for free upon the end of the contract period. Financial close was reached on 15 July 2019.