According to the agreement, the Group will invest in and construct the project using the PPP model. 

Quzhou Project will be invested, constructed, operated and maintained by a project company that is jointly established by Everbright International and state-owned enterprises of the People's Governments of Zhejiang Province and Quzhou City. With the Group holding a 70% stake in the project company, the project commands a total investment of approximately RMB885 million and has an operation period of 30 years (construction period inclusive). Quzhou Project will have a designed daily household waste processing capacity of 1,500 tonnes, and is expected to generate over 182,910,000 kWh of green electricity annually. Its gas emissions will fully comply with the Euro 2010 Standard.

Quzhou City is regarded as one of China's circular economy demonstration cities, international low-carbon pilot cities, and provincial pioneering ecological conservation demonstration zones. In recent years, as part of its effort to transform from being dependent on heavy industry towards being an ecological city through the implementation of its "ecological conservation" plan, Quzhou City has stepped up its investment to help industries save energy, develop recycling infrastructure construction in industrial parks, push forward ecological progress in urban and rural areas, and most notably, protect the environment.

Mr. Hu Yanguo, CEO of Environmental Energy Sector at Everbright International, said, "Quzhou Project is the sixth waste-to-energy project that Everbright International has invested in Zhejiang Province. The Group will devote itself to establishing the project as a demonstration waste-to-energy project in eastern China, facilitating Quzhou City to achieve the harmless treatment, reduction and reuse of household waste to nurture the city's long-term and healthy development. In addition, Quzhou City is a traffic and logistics hub in the fringe area of four provinces, namely Zhejiang, Fujian, Jiangxi and Anhui, which is the main reason why it is called ‘a thoroughfare for four provinces and a crossing at five major roads', according to an old Chinese saying. Therefore, once Quzhou Project completes construction and commences operation, it will have a positive, demonstrative and catalytic effect on neighboring provinces."

Separately, Everbright International recently signed a supplemental agreement to the concession agreement on a household waste-to-energy project with the People's Government of Heze City in Shandong Province. According to the supplemental agreement, the daily household waste processing capacity of Heze Waste-to-energy Project will increase to 1,500 tonnes from 900 tonnes and the daily processing capacity of the project phase I will be boosted from 600 tonnes to 1,000 tonnes. The amount of additional investment in the project phase I reaches approximately RMB524 million. Also, the project phase I is expected to generate over 116,180,000 kWh of green electricity annually, while its gas emissions will fully comply with the Euro 2010 Standard.