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Executive Summary Yangzhou Pre-feasibility Study – Water

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Background of the project:

To keep pace with the growing demand for water due to its continued urbanisation and economic growth, the City of Yangzhou has built two water intake plants and three water treatment plants since the completion of its first water supply plant in 1960. Expansion of the City, integration of outlying and suburban areas and growth of industry along the Yangtze has raised demand for water to a point which the existing plants cannot satisfy.

Like all Chinese cities, Yangzhou prepares and executes master development plans every five years (“Five-Year Plans”). Construction of the No. 5 Water Treatment Plant (the “Plant”) and its associated water intake plant, pumping station and intake and water distribution piping (together, the “Project”) are key elements in the City’s current ( the 11th) Five-Year Plan, part of the City’s overall plan for improving of its Ning Zhen Tai Tong area water supply. The Project was authorized by Jiangsu Development and Reform Commission (JDRC) in April 2007, and the EIA, water source assessment, flood control assessment of project were approved by related departments. The feasibility study and preliminary design were approved by JDRC in Nov, 2007 and April 2008 respectively.

The total capacity of the Plant will reach 300,000 m3/d in two phases, with Phase I reaching 150,000 m3/d. The site of the Plant, in Antie Village, has an area of 134,480 m2; the water intake site is on the Yantgtze River at Jiusheng Village, and has an area of 16,332 m2. Connecting the water intake plant with the treatment plant is 5.24 km of intake (Rawdy water supply) pipeline. The length of distribution (product water) pipeline is 34.9 km. The total investment is forecast to be RMB 389.132m. The construction period is from 2008 to 2010. The city is seeking bank debt to finance completion of the Project.

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