Xintai City Wastewater

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In September of 2005, United Envirotech of Singapore was awarded a 30-year contract to build and operate a wastewater treatment plant in Xintai City, Shandong Province. The plant was to supply at least 30,000 cubic meters of water per day to Xintai City initially, with the supply volumes rising to 80,000 cubic meters per day on the fifth year of the contract. The Xintai facility was originally designed to treat wastewater for discharge into nearby rivers but United Envirotech said it would use its membrane filtration technology to recycle wastewater into potable water. To implement the contract, United Envirotech Water Treatment Xintai Co Ltd. was created as the project company in which United Envirotech purchased a 100% stake for US$4.2 million in October of 2005. The total cost of the plant was expected to cost RMB 70 million (US$8.65 million). The funds for the project were secured in part by a United Envirotech share placement in August of 2005.