CORPORATE GOVERNANCE
STATEMENTS
33
CITIC ENVIROTECH LTD.
Annual
Report
2015
A number of our plants have potential to produce reclaimed water for various applications, such as boiler
water feed. However, this potential has yet to be fully tapped, and will generate additional revenue when
there is demand.
Energy consumption generally takes up about a third of our operating cost in a treatment plant. Therefore
it is in our interest to optimize design, equipment selection, operating conditions and mechanical integrity.
In the light of more stringent discharge standards, and industrial trade effluents needing different treatment
processes, specific energy consumption is seeing an upward trend. We are continually looking into ways to
improve energy efficiency.
There were 2 incidents where plants discharged water beyond the allowable limits between April 2015 to
December 2015. Both incidents happened at a plant where upgrading works were being carried out and
it was not ready to receive incoming industrial waste water from specific sources. This was subsequently
mediated by securing the cooperation of the industrial producers to restrict discharge till the plant was
completed and commissioned.
Gift of Water
In 2014, as part of our celebration of the 10th anniversary of listing on the SGX, we started a partnership
with Lien Aid in its Gift of Water philanthropy effort. Our commitment is to work with Lien Aid and
China Association of Poverty Alleviation and Development so that water scarce villages can access clean
drinking water. In September 2014, we kicked off the program by providing training to about 50 village
management trainees from GuiZhou. Our employees volunteered their time to share knowledge and
experience in drinking water treatment design, installation and maintenance.
In March 2015, our engineers helped to review the technical proposals of five villages and shared tips on
saving installation and maintenance costs. Over the next two years, we will be sponsoring more villages
through Lien Aid and its partners.
Employees who participated in the program applied their professional knowledge and experience so that
the villages receive not just once-off monetary donation, but more importantly the ability to replicate future
success. We share the same belief with our partners that even in social responsibility, solutions must be
sustainable to make a real difference.
We are pleased to report that the first batch of five villages that we co-sponsored and co-mentored with
Lien Aid and its partners have successfully completed their projects. The intervention enabled better access
to clean water for 5,954 residents from 1,303 households living in the villages of Guizhou Province, China
(one of the provinces with severe water shortage) . The beneficiaries included a school in Daba Village,
where 55 students and teachers now have access to clean water in school and at home.
To ensure the sustainability of drinking water supply and service delivery, a water management committee
has been set up in each village. The management committee members are responsible for operating and
maintaining water facilities and tariff collection. The projects will continue to be monitored for 2 years,
with Lien Aid collecting quarterly water meter data and conducting post-project sustainability assessment
on selected villages. In 2015, CEL has disbursed further donation to sponsor another 5 villages in Guizhou
Province.
While improving access to drinking water, sanitation, hygiene and health conditions, this collaborative
approach has also seen CEL and other corporate sponsors mentoring village officers to commit and
fulfill their career aspirations in the rural areas. Reliable and sustainable water supply and sanitation is a
significant step towards better livelihood for all the villagers.
