Core Businesses

Water Resources

Water

Dongshen Water Supply Project

The Dongshen Water Supply Project (the "Water Project") is one of the core businesses of the Group. The Group's effective interest in the Water Project is approximately 95.08%. The Water Project is located near the Dongjiang coastline of the Guangdong Province and is responsible for the supply of natural water to Hong Kong, Shenzhen and Dongguan regions. The Water Project has the comprehensive function of water supply, flood prevention, irrigation and electric power generation. It provides the Group with tremendous and steady cashflow.

Pursuant to the Concession Agreement, the Water Project has been granted the right to operate, maintain, develop and upgrade the project and to supply and sell unprocessed natural water to the users in Hong Kong, Shenzhen and Dongguan. The term of the concession is for 30 years commencing from 18 August 2000.

The Water Project has commenced operations since March 1965 for the purpose of addressing the water supply problems faced by Hong Kong. It is a large scale system that takes water from the intake point and transports it approximately 69 kilometres (or 42.9 miles) to Hong Kong, Shenzhen and Dongguan. In order to improve the quality and reliability of water supply and to provide additional capacity to meet increased demand in the future, the project has undergone a series of renovation work in 2000 (the "Renovation Project"). The Renovation Project upgraded the original water project facilities into a protected water supply system and increased transport capacity for the Water Project. Water supply channels and canals are enclosed and covered in order to protect the water from pollutants carried through natural runoff into the waterway. The Renovation Project was completed in 2003 and the designed annual capacity of water supply of the Water Project is about 2.423 billion tons.

The Water Project is the main source of water supply in Hong Kong.

Other Water Resources Projects

Apart from the Dongshen Water Supply Project, the Group has a number of subsidiaries and associates which are principally engaged in water distribution, sewage treatment operation and waterworks construction in the People’s Republic of China.

The total designed water supply capacity of the water supply plants and the total designed waste water processing capacity of the sewage treatment plants of the Group’s Other Water Resources Projects are 5,604,000 tons per day and 771,000 tons per day, respectively.

Capacity of Water Resources Projects in Operation

The water supply capacity of the water supply plants operated by each of the subsidiaries of the Company, namely, 東莞市清溪粤海水務有限公司 (Dongguan Qingxi Guangdong Water Co., Ltd.*), 梅州粤海水務有限公司 (Meizhou Guangdong Water Co., Ltd.*), 儀征港儀供水有限公司 (Yizheng Gangyi Water Supply Company Limited*), 高郵港郵供水有限公司 (Gaoyou Gangyou Water Supply Company Limited*), 寶應粤海水務有限公司 (Baoying Yuehai Water Company Limited*), 海南儋州自來水有限公司 (Hainan Danzhou Tap Water Company Limited*), 梧州粤海江河水務有限公司 (Wuzhou Yuehai Jianghe Water Company Limited*) , Zhaoqing HZ GDH Water Co., Ltd., 遂溪粤海水務有限公司 (Suixi Guangdong Water Company Limited*), 海南儋州粤海水務有限公司 (Hainan Danzhou Guangdong Water Company Limited*), 豐順粤海水務有限公司 (Fengshun Guangdong Water Co., Ltd.*) and 盱眙粤海水務有限公司 (Xuyi Guangdong Water Company Limited*) is 290,000 tons, 310,000 tons, 150,000 tons, 145,000 tons, 130,000 tons, 100,000 tons, 355,000 tons, 150,000 tons, 50,000 tons, 50,000 tons, 73,500 tons and 150,000 tons per day, respectively, totaling 1,953,500 tons per day.

The waste water processing capacity of the sewage treatment plants operated by each of the subsidiaries of the Company, namely, 梅州粤海水務有限公司 (Meizhou Guangdong Water Co., Ltd. *), 梧州粤海環保發展有限公司 (Wuzhou Yuehai Huanbao Fazhan Company Limited*), 東莞市常平金勝水務有限公司 (Dongguan Changping Jinsheng Water Co., Ltd. *), 開平粤海水務有限公司 (Kaiping Guangdong Water Co., Ltd. *), 五華粤海環保有限公司 (Wuhua Yuehai Huanbao Co., Ltd. *), 東莞市道滘鴻發污水處理有限公司 (Dongguan Daojiao Hongfa Sewage Treatment Co., Ltd. *), 興寧粤海環保有限公司 (Xingning Yuehai Huanbao Co., Ltd. *), 開平粤海污水處理有限公司 (Kaiping Yuehai Sewage Treatment Co., Ltd. *), 五華粤海清源環保有限公司 (Wuhua Yuehai Qingyuan Huanbao Co., Ltd. *) and 汕尾粤海環保有限公司 (Shanwei Yuehai Huanbao Co., Ltd. *) is 100,000 tons, 90,000 tons, 70,000 tons, 50,000 tons, 40,000 tons, 40,000 tons, 3,000 tons, 25,000 tons, 15,000 tons and 30,000 tons per day, respectively, totaling 463,000 tons per day.

The water supply capacity of the water supply plants operated by Foundation Gang-Wu (Changzhou) Water Supply Co., Ltd., 廣州南沙粤海水務有限公司 (Guangzhou Nansha GDH Water Co., Ltd. *) and 汕頭市粤海水務有限公司 (Shantou Guangdong Water Company Limited*), being associates of the Company, is 520,000 tons, 400,000 tons and 920,000 tons per day, respectively, totaling 1,840,000 tons per day.

Capacity of Water Resources Projects under Construction

The water supply capacity of the water supply plants under construction of each of the subsidiaries of the Company, namely, 高州粤海水務有限公司 (Gaozhou Guangdong Water Company Limited*), Zhaoqing HZ GDH Water Co., Ltd., 遂溪粤海水務有限公司 (Suixi Guangdong Water Company Limited*) and 雲浮粤海水務有限公司 (Yunfu Guangdong Water Company Limited*) is 100,000 tons, 50,000 tons, 20,000 tons and 50,000 tons per day, respectively, totaling 220,000 tons per day.

The waste water processing capacity of the sewage treatment plants under construction of each of the subsidiaries of the Company, namely, 五華粤海綠源環保有限公司 (Wuhua Yuehai Luyuan Huanbao Co., Ltd. *), 大埔粤海環保有限公司 (Dapu Guangdong Huanbao Co., Ltd.*) and 海南儋州粤海水務有限公司 (Hainan Danzhou Guangdong Water Company Limited*) is 11,000 tons, 21,900 tons and 20,000 tons per day, respectively, totaling 52,900 tons per day.

* For identification purpose only