Xianyang City Wastewater Treatment Plant

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In October of 2004, the China-based and Singapore-listed Bio-Treat Technology Ltd. announced that its wholly-owned subsidiary, True Global Limited, had secured a 25-year Build-Operate-Transfer (BOT) contract for a 200,000 cubic meters per day wastewater treatment plant in Xianyang City, Shaanxi Province. Xianyang City covered an area of 10,000 square kilometers, and had a population of approximately 4.8 million. Bio-Treat, a private Chinese company based out of Dongguan city in Guangdong Province, was to own 100% of the project. Construction commenced at the end of October, 2004 and was expected to be completed by December, 2006. True Global was to receive regular recurring income payments from the local government of Xianyang City for the services of the plant wholly-guaranteed by the local government of Xianyang City for the entire 25 years. The total estimated cost of the project was RMB288,000,000 (US$35 million) and was to be funded from the US$69.4 million in net proceeds from the share placement exercise undertaken by Bio-Treat in early October of 2004 on the Singapore stock exchange. None None