China Everbright Water Limited announce that the Company (through its subsidiary) has entered into a framework agreement with Qingdao Water Authority Bureau, Shandong Province, in respect of Qingdao Maidao Waste Water Treatment Plant Expansion and Upgrading Project ("Maidao Expansion and Upgrading Project"), which has an estimated total investment of RMB 1.432 billion. A 60%-owned subsidiary of Everbright Water will invest in, construct and operate Maidao Expansion and Upgrading Project based on a build-operate-transfer ("BOT") model, for a proposed period of 25 years (inclusive of the construction period). The project will improve the Company's Qingdao Waste Water Treatment Project (Maidao Plant) ("Maidao Project") mainly in two aspects. Firstly, Maidao Project will reduce its designed waste water treatment capacity from 140,000 m3/day to 100,000 m3/day; in the meantime, a fully underground waste water treatment facility, which has a designed waste water treatment capacity of 120,000 m3/day, will be constructed in the same project area, increasing the aggregate designed waste water treatment capacity of Maidao Project to 220,000 m3/day. Secondly, major indicators of Maidao Project's discharged water will be further upgraded to comply with standards that are similar to the Category V according to the Environmental Quality Standards for Surface Water (GB18918-2002).