Salcon Berhad Construction Agreement-non-potable Water
BackJun 26, 2007
| General Announcement |
| Reference No CC-070625-48710 |
| Company Name |
:
|
SALCON BERHAD |
| Stock Name |
:
|
SALCON |
| Date Announced |
:
|
26/06/2007 |
 |
|
|
| Type | : | Announcement |
| Subject | : | SALCON BERHAD CONSTRUCTION AGREEMENT-NON-POTABLE WATER |
Contents :
The Board of Directors' of Salcon Berhad ("Salcon" or "the Company") wishes to announce that, Linyi Salcon Water Company Limited ("LSWCL"), a sub-subsidiary of Salcon, had on 23 June 2007 entered into a Construction Agreement with Linyi City Government ("the Linyi Government") to design, construct, operate, maintain, produce and sell non-potable water in bulk to Nanfang District, Linyi City, Shandong Province, China.
A. SALIENT TERMS OF THE AGREEMENT
Total design capacity of the Non-potable Water Treatment Plant (the "Plant") is 100 MLD to be developed in 2 phases. The construction of first phase of 50 MLD will commence upon fulfillment of the terms and conditions of the Agreement.
LSWCL will be granted a 30-year concession rights upon commencement of commercial runs of the first phase in 2009.
The cost of the Project is approximately RMB90.0 million. The land for the Plant measuring 68 mou (11 acres) shall be given to LSWCL by the Linyi Government at no cost.
Investment in laying of pipelines in Nanfang area will be undertaken by the Linyi Government. The Linyi Government will also undertake to provide a bulk purchase guarantee at 30 MLD upon commencement of phase 1 of the non-potable water treatment plant.
B. FINANCINGLSWCL will be granted a 30-year concession rights upon commencement of commercial runs of the first phase in 2009.
The cost of the Project is approximately RMB90.0 million. The land for the Plant measuring 68 mou (11 acres) shall be given to LSWCL by the Linyi Government at no cost.
Investment in laying of pipelines in Nanfang area will be undertaken by the Linyi Government. The Linyi Government will also undertake to provide a bulk purchase guarantee at 30 MLD upon commencement of phase 1 of the non-potable water treatment plant.
The Company will fund the above Project through internally generated funds and borrowings.
C. FINANCIAL IMPACT
The above Project will not have any material impact to the earning of the Group for the financial year ending 31 December, 2007. The Company expects to make positive contribution in the future years.
D. Directors' and Substantial Shareholders' Interests
None of the Directors or substantial shareholders of Salcon or persons connected to the Directors or substantial shareholders have any interest, direct or indirect, in the Construction Agreements.
This announcement is dated 26 June 2007.