China Everbright Water Limited announced that the Company has entered into a concession agreement with, inter alia, Linyi Luozhuang Housing and Urban-Rural Development Bureau and Luozhuang Economic Development Zone Management Committee (as authorised by the People's Government of Luozhuang District, Linyi City, Shandong Province), and secured Shandong Linyi Luozhuang Economic Development Zone Waste Water Treatment Plant and Ancillary Pipeline Network Project Phase I, which commands an investment of approximately RMB 259 million. Luozhuang Economic Development Zone Project Phase I will be implemented by a wholly-owned subsidiary of Everbright Water based on a BOT (Build-Operate-Transfer) model, for a concession period of 30 years (including the construction period). The project will include a semi-underground waste water treatment plant, which has a designed daily waste water treatment capacity of 20,000 m3, and an ancillary pipeline network of about 37.1 km.

Key indicators of the waste water treatment plant's discharged water will comply with the national Grade 1A standard according to the Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002). In addition, the concession service area of Luozhuang Economic Development Zone Project Phase I is in the west of Luoqi Road and the south of South Ring Road, which includes Chudun Town, Fuzhuang Street and Luozhuang Economic Development Zone, with a service area of about 48 km.