China Everbright Water Limited announced that the company has secured Ji'nan Prior Zone Detonation Area Waste Water Treatment Public-Private Partnership ("PPP") Project ("Ji'nan Prior Zone Project") in Shandong Province, which involves an investment of approximately RMB 299 million. Located in the Ji'nan Start-up Area (previously known as the Prior Zone), Ji'nan Prior Zone Project will be invested in, constructed, operated and maintained, based on a PPP model, by a project
company jointly established by, inter alia, Everbright Water and its indirectly wholly-owned subsidiary Ji'nan EW Environment Management Limited (collectively, the "Company's Contracting Parties", which will hold 85% equity interest in the project company). With a concession period of
30 years (including one-year construction period), Ji'nan Prior Zone Project is designed to have a
daily waste water treatment capacity of 40,000 m3 and a daily reusable water supply capacity of
30,000 m3. Such project involves the construction of an underground waste water treatment plant,
with the above-ground area serving as a community park that benefits the neighbouring residents.