As a leading water environmental protection enterprise renowned in China, Chengdu Xingrong Environmental Co., Ltd. (hereinafter referred to as “the company”), following the development strategy of “going out” set forth by the Chengdu Municipal Party Committee and Municipal People’s Government, keeps advancing and expanding into markets outside of Chengdu while maintaining existing water supply and drainage treatment capacity and endeavors on environmental protection, becoming the bid winner of Jiangsu Pei County’s PPP water supply project.
On August 8, 2016, the company received notice of their win from the governmental purchasing center of Jiangsu Province about the PPP water supply project of Pei County, marking its first PPP water supply project to officially break ground. With the breaking of new ground in business expansion modes, the company has accumulated a wealth of experience on PPP modes on comprehensively improving the urban water environment. It reached a milestone surpassing its previous position as a municipal level state-holding enterprise.
Granted franchise rights that have endured for 30 years, a total investment of RMB 1.504 million in this project will be put into conserving water sources; constructing Phase II water plants, regional water supplies and rural drinking water safety; connecting water plants to plumbing networks; reconstructing pipe networks in older neighborhoods; building sewage treatment plants; and exploiting second water sources across 13 municipal towns. The planned amount of water supply and discharge is approximately 400,000 tons per day. This project, featuring a pilot in Jiangsu Province that demonstrates the third batch of PPP projects of the Ministry of Finance of the PRC, will recombine and integrate water industrial resources in county areas, including water-related affairs in urban and rural regions, water supplies. and discharges, as well as water plants and networks. Its successful operation will drive the development of specialized markets for water projects in Pei County and its surrounding. This will bring substantial results in improving the water environment, water quality, and ecosystems in this region and set the stage for secure water supply and ecological environment improvements for Pei County. It is an important step for the Pei government to tap economic growth, safeguard citizens’ access to healthy water and enhance overall strength. To gain the right to popularize this project across China, the People’s Government of Jiangsu Province is actively recommending it to being added to the list of national PPP demonstration projects.
Taking the lead beginning this April, the company has brought water supply companies and drainage-handling firms together to cooperate on projects. After prequalification and reviews as well as rounds of negotiations for bidding, the company surpassed other social capitals and were given the go-ahead with the most exemplary performance. Standing out as the first choice among all suppliers, it negotiated with the People’s Government of Pei County on purchasing and came to an accord in the second round, becoming the de facto suppler for Pei County’s PPP water supply project.
This winning bid will serve to enlarge the company’s business scale and add more value to its brand as a water environmental protection. While moving forward, the company will worker harder to expand its market and explore diversified business investment and cooperation models featuring multiple approaches and methods. It will accumulate more developmental experience and driving forces for going national and then global. By bolstering its competitiveness, accelerating developmental steps, and enlarging business size, the company endeavors to forge an internationally renowned brand of its own in the next five to ten years.