The Edge

Berjaya Corporation Bhd (BCorp) yesterday inked an agreement to build, operate and transfer a RM111.23 million sanitary landfill project in Foshan City, China.

The project, known as the Sanshui Bainikeng Sanitary Landfill, is expected to generate RM426.04 million in revenue during the 28-year concession period, the company said in a statement yesterday.

BCorp will be entitled to collect tipping fees from the Construction Bureau of Shanshui District (CBSD), which will guarantee a specified minimum waste volume to be delivered to the landfill throughout the concession period. The minimum tipping fee is 123.50 renminbi (about RM58.80) per tonne and BCorp has the right to revise the fee annually in accordance with variation in electricity tariff and consumer price index, the announcement read.

The construction of the landfill, which will have an overall municipal solid waste capacity of about 9.52 million tonnes, will be divided into five phases. The first phase is expected to commence "in the last quarter of 2008" and is scheduled for completion by mid-2009.

BCorp will transfer the rights to the agreements to a wholly-owned subsidiary to be incorporated in China in line with Chinese regulations. It will transfer the landfill, measuring about 26 hectares, back to the CBSD at no cost at the end of the concession period. The project comprises the construction of the supporting facilities such as leachate treatment plant, landfill gas management system, operation and administration offices, living quarters for the workers and other infrastructure works.