Tuesday, May 24, 2011

Bjcorp ... May11

Berjaya Corp Bhd (BCorp) is to secure another three projects in China’s waste management sector totalling 500 million yuan (RM233.2 million) in the next few months, increasing the total value of such projects in the mainland to one billion yuan.

The projects will be related to incinerator, landfill, wastewater treatment and potable water treatment in the Guangdong province.

Presently, BCorp has three such projects in China worth 500 million yuan and with the additional three, total project value would hit the one billion mark by 2011. With more projects in the portfolio, the group’s waste management division in China could meet the criteria to list in Hong Kong, China or the Singapore Stock Exchange.

BCorp’s first waste management project in China is the Bainikeng Sanitary Landfill in Sanshui district in Foshan city, Guangdong. The project costs 264 million yuan with projected revenue of 1.5 billion yuan over its 28-year concession period (which includes the one year construction period).

BCorp is now constructing its second waste management project, the Xinan Jinben Wastewater Treatment Plant in Sanshui which will be in operation by June 2012. The Xinan Jinben project would cost 119 million yuan with a total projected revenue of 768 million yuan over the 25-year concession period. Located on a four hectare site near the Jinben Industrial Park, the Xinan Jinben water treatment plant is expected to treat 30% sewage and 70% industrial wastewater from beverage manufacturing plants such as Budweiser, Coca-cola, Red Bull, Yeo’s and Tsingtao beer operating nearby.

BCorp’s third waste management project in China is a wastewater treatment plant in Jiangnan, also in Guangdong province, where construction is expected to begin next year. This plant, which will treat sewage from residential homes, will cost 120 million yuan with a capacity of 40 million litres per day (MLD) and with also a 25-year concession.

Three projects are under a long term build-operate-transfer (BOT) basis which is ideal for BCorp if it plans to seek listing for its China waste management division to raise funds.

The group will leverage on its projects in China to solicit for more projects in the country.

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