Core Businesses

Water Resources

Water

Dongshen Water Supply

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 95.04%. 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 annual capacity of water supply of the Water Project is about 2.423 billion cubic metres.

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

Water Group HK

Guangdong Water Group (H.K.) Limited (“Water Group HK”), a wholly-owned subsidiary of the Company, holds 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 water supply capacity of each of the subsidiaries of Water Group HK, 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 Gongshui Company Limited*), 高郵港郵供水有限公司 (Gaoyou Gangyou Gongshui Company Limited*), 寶應粤海水務有限公司 (Baoying Yuehai Shuiwu Company Limited*), 海南儋州自来水有限公司 (Hainan Danzhou Tap Water Company Limited*), 梧州粤海江河水務有限公司 (Wuzhou Yuehai Jianghe Shuiwu Company Limited*) and Zhaoqing HZ GDH Water Co., Ltd. is 290,000 tons, 210,000 tons, 150,000 tons, 145,000 tons, 130,000 tons, 100,000 tons, 355,000 tons and 90,000 tons per day, respectively, totaling 1,470,000 tons per day.

The waste water processing capacity of the sewage treatment plants operated by each of the subsidiaries of Water Group HK, 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.*) and 東莞市道滘鴻發污水處理有限公司 (Dongguan Daojiao Hongfa Sewage Treatment Co., Ltd.*) is 100,000 tons, 90,000 tons, 70,000 tons, 50,000 tons, 40,000 tons and 40,000 tons per day, respectively, totaling 390,000 tons per day.

The water supply capacity of 江河港武水務(常州)有限公司 (Jianghe Gangwu Shuiwu (Changzhou) Company Limited*) and 廣州南沙粤海水務有限公司 (Guangzhou Nansha GDH Water Co., Ltd.*), being associates of Water Group HK, is 520,000 tons and 400,000 tons per day, respectively, totaling 920,000 tons per day.

During the third quarter of 2016, the Group successfully bid two new water resources projects in Hainan Province and Zhanjiang, respectively, with total designed water supply capacity of 170,000 tons per day and waste water processing capacity of 90,000 tons per day.

* For identification purpose only