Yuan He Water Treatment Plant

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In July of 2003, Pinang Water Ltd. (PWL) was awarded a 29-year BOT contract from the government of Yichun City to construct a 100,000 cubic meters per day water treatment plant on the Yuan River. The project was to be built in two phases of equal size (50,000 cubic meters per day). As of 2003, Yichun had only two water treatment facilities, each capable of producing a maximum of 50 million liters of treated water per day, while the peak demand for water was 100 million liters. PWL was a Malaysian joint venture company owned by YLI Holdings (37%), PBA Holdings (26%) and KWI Far East Sdn Bhd (37%). The JV was formed to look for waterworks related projects outside of Malaysia. In 2004, Ranhill Utiltites of Malaysia purchased 70% of KWI Far East Sdh Bhd. The total cost of the project was estimated at US$9 million. The project was funded though internal capital provided by the shareholders of PWL with the balance financed through credit terms from the machinery suppliers. The completion of the first phase of the project was expected in mid 2004, while the entire project was expected to be completed by the end of 2004. None None