Tri-Tech Holding Wins $42 Million EPC Contract for Indian Sewerage Collection and Treatment Systems
Beijing, China – November 10, 2011 – Tri-Tech Holding Inc. (Nasdaq: TRIT),an engineering solution provider; specializing in providing turn-key solutions involving water resources management, water and wastewater treatment, industrial safety and pollution control, announced today that its subsidiary, Tri-Tech (Beijing) Co. Ltd. (Tri-Tech Beijing), won contracts totaling $42 million from Bihar Urban Infrastructure Development Corporation Limited (BUIDC) for engineering, procurement and construction of three sewerage collection system and sewerage treatment plants for Hajipur Town ($19.36 million), Begusarai Town($12.02 million) and Buxar Town ($10.62 million) in the State of Bihar, Republic of India.
These three projects will be funded by the National Ganga River Basin Authority (NGRBA),an Indian governmental agency charged since 2009 with reducing pollution levels and improving water quality from the Ganga River. The program encompasses comprehensive sewerage systems including laterals, branch and truck main sewage collection systems. Sewage treatment plants will be constructed to cover the three cities situated along the Ganga River in the State of Bihar. NGRBA aims to halt the discharge of untreated waste water into the Ganga River and its tributaries.
Under the terms of the contracts, Tri-Tech Beijing will develop, design and construct one sewage treatment plant for each of the three towns. The proposed daily treatment capacity will be 22,000 cubic meters for Hajipur, 17,000cubic meters for Begusarai, and 16,000 cubic meters for Buxar. The treated effluent quality will comply with the Indian effluent standards for discharge of effluents into inland surface water bodies as set by the National River Conservation Directorate (NRCD) and the Environmental Protection Rules 1986 for disposal into inland surface water. Tri-Tech will also build a complete sewerage collection system covering each town. The sewerage network including trunk and branch pipes will stretch 372 kilometers in Hajipur, 182 kilometers in Begusarai and 175 kilometers in Buxar. Tri-Tech will also provide operation and maintenance services for the sewage treatment plants and sewerage systems for the next five years after completion. Under the payment terms of the contracts, the project payment will be made to Tri-Tech monthly on work progress based on billing of quantity submitted to BUIDC by Tri-Tech. We expect the three projects to be completed by the end of 2013.
Mr. Warren Zhao, CEO of Tri-Tech Holding Inc. said: “We are excited about our first wastewater treatment project in India secured through competitive international bidding. Since the establishment of Tri-Tech India in May 2010, we have been strengthening our presence in the Indian market. This initial success represents a substantive step for us to execute our overseas expansion strategies in the Indian market. These strategies have involved establishing a full project execution team, including personnel with expertise in engineering, human resources, administration and logistics. We have recruited experienced local project managers and engineers to consolidate the project execution team in India and are preparing to send senior engineers and project management team members from our headquarters in China to collaborate with the Indian team as the projects proceeds. At the same time, we have studied local construction conditions in India and have communicated specific requirements with the client to provide them a preliminary proposal as scheduled and to ensure smooth progress going forward.”
Mr. Anil Kumra, Managing Director of Tri-Tech India said: “As an Indian joint venture of Tri-Tech, we closely cooperate with our team in China to combine a professional business development team with a core of local Indian staff. Following our breakthrough in Bihar, our mission is to implement the projects with international management standards. As such, we are building a professional project execution team, including senior project managers Mr. Harihar Singh and Mr. Anoop Das Gupta. Mr. Singh holds a Bachelor of Technology - Mechanical degree from IIT Roorkee. He started his career with a Technofab Engineering Ltd and worked there for 32 years. He has extensive experience in construction management, project management, planning and control, optimization tools and techniques managing multi-geography teams in distributed development environments. Mr. Das Gupta’s background includes experience in project management, systems integration, infrastructure projects, business systems, systems integration and deployment, quality assurance, customer relationship management and data warehousing. We are confident that these project managers and the other members of the project team will serve us well as we implement the Bihar projects.”
Mr. Phil Fan, President of Tri-Tech Holding commented: “India is facing a severe challenge of sewage treatment capacity as rivers in India such as the Ganga are heavily polluted, particularly due to untreated sewage discharge. According to 2010 numbers, 38million cubic meters of sewage are generated in towns and cities in India daily, and 70% of the total sewage is not treated due to a lack of sewage collection systems and treatment facilities. Out of 3119 Indian cities and towns, only 209 are equipped with rudimentary sewage treatment facilities and only 8 metropolitan areas have reached 50% sewage treatment capacity. A number of sewage treatment plants and the sewage treatment technologies used in those plants are fairly outdated as many of those plants are not adequately operated and maintained. According to the Central Pollution Control Board (CPCB) of India, 39% of sewage treatment plants in India do not conform to discharge standards. The untreated sewage and unqualified effluents are major pollutant to rivers and lakes in India. In addition, a disparity between sewage output and sewage treatment capacity is evident as construction progress of new sewage treatment plants lags behind India’s rapid growth and urbanization.”
“Based on these data, we believe that India presents a promising market for environmental enterprises like ours that develop water and wastewater, municipal solid waste disposal infrastructures. Tri-Tech has been strategically focusing on the municipal wastewater treatment market, and we are also pursuing broader business initiatives in municipal water supply, municipal solid waste disposal, industrial water and wastewater treatment.”
About Tri-Tech Holding Inc.
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include references to the successful completion of the project referenced herein and other statements concerning plans, objectives, goals, strategies, future events such as project payments, results of marketing efforts or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.