The board of directors of Tianjin Capital Environmental Protection Group Company Limited warrant that there are no false information, misleading statements or material omissions in this announcement, and accept joint and several responsibilities for the truthfulness, accuracy and completeness of its contents. The Company recently received a successful bidding notice from Henan Cheng Da Engineering Management Co. Ltd. (He Nan Cheng Da Gong Cheng Guan Li You Xian Gong Si), which confirmed that the Company shall be the successful bidder for the Public-Private Partnership ("PPP") Project of Anyang Municipal Sewage Treatment Centre (Phase I).

Details are as follows: Basic information of the Project. Name of the Project: PPP Project of Anyang municipal Sewage Treatment Centre (Phase I) 2. brief fact of the Project: The scale of construction of the Project would be 100,000m3/d, and the sewage treatment process of the sewage treatment plant adopts the " improved AAO + in-depth treatment" process; the sludge treatment process adopts those of mechanical thickening and dewatering, and the water content of the treated sludge would be 80% or less, and the sludge would be transported to the sludge disposal centre for harmless disposal and resource utilisation; the effluent indicators of the Project are required to be higher than Grade 1A standard of the "Pollutant Discharge Standard for Urban Sewage Treatment Plants" (GB18918-2002), and the effluent quality shall meet quasi-Category IV standard. The approved preliminary design budget of the project is RMB 691,529,000.

Operation format of the Project: The Project adopts the PPP model, with the Housing and Urban-Rural Development Bureau of Anyang City (An Yang Shi Zhu Fang He Cheng Xiang Jian She Ju) as the tenderer and Anyang City Development Investment Co. Ltd. (An Yang Cheng Shi Fa Zhan Tou Zi Xian Gong Si)as the representative of government contribution (with a contribution ratio of 40%) for the construction of phase one of Municipal Sewage Treatment Centre of Anyang City, and selects the social capital contributor through public tendering, and the social capital contributor and Anyang City Development Investment Co. Ltd. will set up a project company to be responsible for the Project's investment and financing, construction, operation, maintenance and user support duties during the cooperation period of the Project, and the Project shall be handed over to the Anyang City People's Government or its designated agency at no cost after the cooperation period.

Construction content of the Project: thick screen and water inlet pump room, fine screen and aerated grit chamber, primary sedimentation tank, biological pool, sludge pump room, secondary sedimentation tank, high-efficiency sedimentation tank, deep bed filter and backwashing equipment room, disinfection canal, discharge pump room, sludge storage pool, sludge thickening and dewatering machine room, biological deodorization filter tank, carbon source feeding room, blower room, dosing room, sewage tank, among other facilities; supporting the construction of ancillary buildings, roads, greening, water supply and drainage, electricity, sewage network, etc. A new sewage pipeline from the East District Sewage Treatment Plant system to the new Municipal Sewage Treatment Centre will be constructed, with a construction length of approximately 7.5 km. The length of water outlet pipeline after treatment will be approximately 2.8 km.

Unit price of sewage treatment: RMB 1.35/ton of water. Unit price paid for the incoming sewage line: RMB 1,844,100/km. Term of the co-operation: the cooperation period would be 30 years, of which the construction period would be 2 years and the operation period would be 28 years.

Mode of operation: ROT (Reconstruction­Operation­Transfer). Return mechanism of the Project: government payment.