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BURSA ANNOUNCEMENTS

Date: 02 June 2014

OTHERS Taliworks Corporation Berhad ("Taliworks" or "the Company") - Signing of Head of Agreement for the Upgrading and Expansion on Yinchuan Waste Water Treatment Plants (Plant no. 1, 2, 3 and 4) In Ningxia Hui Autonomous Region by Taliworks (Yinchuan) Wastewater Treatment Co. Ltd ("Taliworks Yinchuan"), a wholly-owned subsidiary of Taliworks International Limited ("TIL"), which in turn, is a wholly-owned subsidiary of Taliworks, with the Yinchuan City Construction Bureau (Construction Bureau)

 

Type Announcement
Subject OTHERS
Description Taliworks Corporation Berhad ("Taliworks" or "the Company") - Signing of Head of Agreement for the Upgrading and Expansion on Yinchuan Waste Water Treatment Plants (Plant no. 1, 2, 3 and 4) In Ningxia Hui Autonomous Region by Taliworks (Yinchuan) Wastewater Treatment Co. Ltd ("Taliworks Yinchuan"), a wholly-owned subsidiary of Taliworks International Limited ("TIL"), which in turn, is a wholly-owned subsidiary of Taliworks, with the Yinchuan City Construction Bureau (Construction Bureau)

Further to the announcements made on 25th August 2010, 27th January 2011 and 22nd September 2011, we wish to update the Exchange that Taliworks Yinchuan (the single-purpose company established to undertake the Project of taking over the four (4) existing municipal waste water treatment plants with recycled water facilities in Yinchuan City, in the People's Republic of China on a Takeover-Operate-Transfer basis for a total value of RMB810 million) had on 31 May 2014 entered into a Head of Agreement("Agreement") with the Construction Bureau and the details of the Agreement are as follows:-

 

  1. Estimated further investment: RMB 900 million
  1. Infrastructure works on Yinchuan City Waste Water Treatment Plant no. 1,2,3 and 4:

Upgrading and expansion of existing waste water treatment plants from existing capacity of 300 Mld to 480 Mld with effluent discharge complying to Standard 1A of the national standard on "Urban Sewage Treatment Plant Pollutant Discharge Standard" and the construction of recycled water distribution and supply facilities.

 

  1. Construction Period: 4 years with stages of completion from January 2014 until December 2017.

The abovementioned upgrading works are pursuant to the directive by the Yinchuan Environment Protection Agency to upgrade all treatment systems whereby the treated effluents would be capable of complying with the highest discharge standard, Standard 1A.

 

 

The first upgrading and expansion engineering works shall be carried out on Yinchuan Waste Water Treatment Plant no.3. Upon completion of the said upgrading and expansion engineering works, the Construction Bureau has agreed to revise the waste water treatment fee from existing RMB 0.80/cu.m. to a fee of RMB 2.45/cu.m , which will be affirmed based on the final construction cost for the said Treatment Plant. The entire upgrading and expansion engineering works are scheduled to complete by mid 2015.

 

 

Any other related matters not mentioned for the above works in this Agreement shall be separately negotiated for supplemental agreements to be entered into by the parties. The supplemental agreements and this Agreement shall have equal legal effect.

The investment is not expected to have any major financial impact for the financial year ending 31st December 2013 as the upgrading will be in the early stages of mobilization and planning but is expected to contribute positively to the future earnings of the Group.

 

 

None of the Directors or substantial shareholders of Taliworks or persons connected to them has any interest, direct or indirect, in the infrastructure investment.

 

The Company will make the appropriate announcement on any other development relating to this matter in due course.

 

Dated this 2nd day of June 2014



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