DALIAN, China, Nov. 4, 2009 (PRNewswire-Asia) -- China Industrial Waste Management, Inc. (OTC Bulletin Board: CIWT) ("China Industrial Waste Management" or the "Company"), a leading environmental services and solutions provider in China, today announced construction and regulatory progress related to the Build-Operate-Transfer ("BOT") municipal sludge treatment and disposal facility in Dalian, China (the "Project") that is being developed by the Company's subsidiary Dongtai Organic Waste Treatment Co. Ltd. ("Dongtai Organic").
The Company announced that six of the Project's 12 fermentation tanks are now complete and have passed examination by the Dalian Municipal Urban Construction Administration Engineering Technology Agency and that a biogas pipe network has been built. Upon launch, the Project's 12 tanks will be able to process 600 tons of municipal sludge per day and generate 25,000 to 30,000 cubic meters of biogas per day. The biogas generated by these tanks will be distributed through the network to end-users in Dalian as a supplement to the gas currently being supplied by the municipality. Dongtai Organic can yield revenues from the sale of this biogas.
Dongtai Organic is developing the first sludge treatment plant in Dalian designed and built in the mode of a BOT project, with a 20-year operating term. The project was commenced in April 2007 and is expected to be operational in early 2010. As required by the BOT contract, the government will supply raw material (municipal sludge), and pay processing fees to Dongtai Organic. China Industrial Waste Management has a 49% ownership interest in Dongtai Organic via its 90%-owned subsidiary Dalian Dongtai Industrial Waste Treatment Co., Ltd. ("Dongtai"). The total cost for the Project is approximately RMB 129 million ($18 million), of which Dongtai's share is RMB 63 million ($9 million).
"The development of the Dongtai Organic Waste Treatment Project is an important step in China Industrial Waste Management's strategy of expanding into municipal sewage and sludge treatment BOT projects," said Mr. Jinqing Dong, the Company's Chief Executive Officer. "We believe that a well-operated BOT project will gain attention and social recognition from the local government and business community, which may, in turn, provide additional business opportunities for similar projects in China. Our returns from BOT projects are derived from fees paid by the government and sales of biogas.
