Hi Dungiven, according to what the article said that Beijing Enterprises Water Group has already been working with the Yixing government on the number of PPP wastewater projects in the past few years, so I believe they would had a really strong relationship with the government, sometimes the technology is only one of many important factors, when you do business in the Chinese market, you always need to have good 'guanxi' (relationship), and the relationship does not build in one day. In terms of the technology, we are a step ahead than the rest of Chinese local companies. OriginWater still use MBR for their rural wastewater treatment plant and the water quality only achieved "Beijing Water Pollution Discharge Standard" level 1B standard, where we used much less energy and achieved 1A standard, Soundgroup just came up cloud based remote control wastewater plant idea when we already have this remote control OM cloud-based software in operation.
I agree that as shareholders our day will come, so I do have the same feeling that similar deal would come from either CGGC or Wuxi Guolian, my money would be on CGGC if I have to choose one. I didn't have much time earlier today to dig more up, but now I have time and I have found something encouraging.
1.
On 23rd Feb 2017, Hubei Provincial Department of Housing and Urban Construction Director Li Changhai held the rural sewage treatment facilities construction mobilization meeting, asked all localities to seriously implement the central and provincial government policies on infrastructure investment and financing reform, strengthen government and social capital cooperation, PPP way to promote the construction of the project operation, give full play to the main market technology and management advantages.
In the latest issue of the "on further strengthening the work of urban sewage treatment views" and "Hubei Water Pollution Control Action Plan work program ", the Hubei provincial government said it would promote the rural sewage treatment work and give them greater policy support.
According to the innovative financing mechanism, Hubei Province will establish a financial support, social participation, user payment combined with the financing and sharing mechanism. The relevant departments at the provincial level actively strive for the central policy project funds, financial integration at all levels of funds related to support the construction of rural sewage treatment facilities.
From year 2017 - 2019, the provincial annual transfer of city and county 10 billion yuan of government special bonds, by the relevant cities and counties for the construction of sewage treatment facilities in the rural area. After the completion of the operation of the rural sewage treatment plant, the provincial level according to the online monitoring and assessment operations, through the general transfer payments to give some operating subsidies. (Source: http://www.zhjs.cc/article-35646-1.html )
2.On 27th February 2017, General Manager of the CGGC Mr He Jiansheng along with Deputy GM Song Ling have met Hubei Province Department of Housing and Urban Construction Director Li Changhai to discuss potential business cooperations on rural sewage treatment, waste disposal and other areas.
He Jiansheng said that in recent years, Gezhouba Group has increased structural adjustment, transformation and upgrading efforts, the development momentum is good. In the field of water, through technology mergers and acquisitions mastered the world's leading core technology, through the construction of investment, construction, operation of the water platform in Hubei, Hebei, Tianjin, Shandong and other places have a lot of water operations; in the PPP business, Haikou, Beijing Tongzhou, Zhejiang Wenling, Jingmen Bamboo River and other black water, watershed management works. He said that Gezhouba Group is willing to innovate the business model and build platform company(newly formed Water Operation Company on Sep 2016), actively involving in Hubei urban and rural waste disposal, water management, rural sewage treatment, water supply business, construction investment, construction, operation, training, maintenance, management platform, Jointly contribute to environmental protection business in Hubei Province.
Li Changhai has said that there are more than 600 townships in Hubei Province do not have any sewage treatment plants placed, the provincial government requires the sewage treatment facilities to cover all the towns in two years, the government welcomes the investment strength and credibility of large enterprises to invest and operate. He said that the cooperation model proposed by Gezhouba Group is consistent with the requirements of Hubei Province on the integration of construction and transportation of rural wastewater, transportation and integration. He hopes that the Gezhouba group will play an important role in investment, technology and talent, and actively participate in the rural sewage wastewater treatment of Hubei Province.
(Source: http://www.gzbgj.com/art/2017/2/27/art_7616_1319708.html & http://www.ceec.net.cn/art/2017/3/9/art_11016_1325500.html)
3. 27th May 2017, the deputy GM of CGGC Song Ling has met Ilan Wilf Vice President of Emefcy and Philippe Laval Chief Operating Officer of RWL Water. ( Source:
http://www.gzbtz.ceec.net.cn/art/2017/5/27/art_13265_1385723.html )
4.
30th Aug 2017, the deputy general manager of CGGC Song Ling has visited Jingmen demo wasterwater project to have in-depth understanding of the Israel MABR integrated equipment and ask for the progress of the rural sewage test work.
Song Ling pointed out that the current rural sewage market in Hubei Province has a bright future, but the competition is quite fierce. The central and provincial government has set a very short time-frame. The investment company should speed up the demonstration work of the integrated equipment and issue a technical assessment report and make investment decisions as soon as possible to seize market opportunities. Meanwhile, the CGGC investment company will strengthen cooperation with Israel's Emefcy company, the CGGC investment company will develop their own strength with the market, Israel Emefcy companies to provide advanced technology and fully reflect the technological competitive advantage, the two sides will work together and jointly promote China's rural sewage treatment market development. ( Source: http://www.gzbtz.ceec.net.cn/art/2017/9/1/art_13265_1464235.html )
I guess what we need now is to wait on Chinese to verify MABR technology that works and meet their geographical and national water quality requirements,this is now a waiting game, as I see the rest of parts are all ready to go, financing models, government support and a strong partnership.
(20min delay)