Recently, the listed company Hainan Ruize announced that the company received the "Heshan Mashan Domestic Waste Landfill Reduction PPP Project Early Termination Agreement" (hereinafter referred to as the "Early Termination Agreement") signed by its subsidiary Guangdong Lurun Environmental Technology *** hereinafter referred to as "Guangdong Lurun") and Heshan Solid Waste Treatment Center Since the date of signing the "Early Termination Agreement", the Heshan Mashan Domestic Waste Landfill Reduction PPP Project has been terminated early. The contract for the PPP project of Mashan domestic waste landfill reduction in Heshan City was terminated.
The reasons for the lifting are as follows: according to the "Implementation Plan for the Strength and Weakness of Urban Domestic Waste Classification and Treatment Facilities" (Fagai Huan Zi 2020 No. 1257, "Implementation Plan"), in areas with a daily domestic waste removal and transportation volume of more than 300 tons, it is necessary to accelerate the development of incineration-based garbage treatment methods, moderately advance the construction of incineration treatment facilities that are compatible with the amount of domestic waste removal and transportation, and basically realize the requirements of "zero landfill" of primary domestic waste by 2023. After research, it is difficult to meet the requirements of "zero landfill" of domestic waste in 2023 in the "Implementation Plan", so it was decided to terminate the project ahead of schedule after friendly consultation between the two parties.
On February 27, 2018, Guangdong Lurun won the bid for the PPP project of Mashan Domestic Waste Landfill Reduction in Heshan City. The total budget of the project is approximately RMB493 million, the availability service fee is RMB92.01 million, the unit price of the waste disposal service fee is RMB124 tonnes, and the cooperation period is 20 years (including the construction period and operation period).
Heshan Solid Waste Treatment Center and Lvsheng Environmental Protection agreed on the compensation for the termination of the project
1) Both parties agree that Party A shall pay Party B the following amount as compensation for the early termination of the project (i.e., the amount of early termination of the acquisition, the same below), which includes:
a.As of May 31, 2023, the "Asset Appraisal Report" (No. [2023] No. 07001, the "Asset Appraisal Report") is assessed in full RMB 72,241,18714 yuan;
b.As of the date of signing of this Agreement, Party A has not paid Party B's garbage disposal service fee of RMB 12,443,736 under the PPP Project Contract00 yuan.
2) Since the appraised value in the "Asset Appraisal Report" in Part A above does not include VAT, Party B shall issue a VAT invoice with the pre-tax amount of Part A funds as the amount, and the VAT stated on the ticket shall be borne and paid by Party A.
3) The costs of property rights, labor, taxes and other expenses incurred due to the transfer of the project shall be borne by each party.
4) Both parties confirm that, in addition to the early termination compensation agreed in this paragraph, Party A is not required to pay any other additional fees or compensation to Party B for the early termination of the project, and Party A does not breach the contract or need to bear liquidated damages under the PPP Contract.
Party A or Party A's designated entity shall pay Party B all early termination compensation in a lump sum before January 31, 2024, unless otherwise agreed in this Agreement.
It is reported that the main construction content of the Mashan domestic waste landfill reduction PPP project in Heshan City includes:
1) Investment, construction, operation and maintenance of a daily processing of not less than 600 tons of garbage sorting system project (including garbage sorting workshop, humus production workshop and supporting automatic control system and deodorization facilities, according to a daily shift of 8 hours), new biogas combustion system engineering, new sanitary landfill reservoir area engineering, leachate treatment system expansion project (treatment capacity of 100m days), site supporting facilities engineering and resource supporting facilities (including site roads, landscaping projects, etc., as well as the landfill closure works involved in the project;
2) Manage the Mashan Domestic Waste Sanitary Landfill in Heshan City, be responsible for the operation and maintenance of the existing facilities of the Mashan Domestic Waste Landfill, be responsible for garbage sorting, landfill, reduction and disposal, site sewage treatment and site odor treatment, and obtain the asset management right of the renovation and expansion (phase III) project of the Mashan Domestic Waste Sanitary Landfill in Heshan City for a fee;
3) Treatment of stock garbage (about 600,000 m, subject to the actual amount), treatment of existing stock sewage (about 100,000 m, subject to the actual amount), after the completion of sewage treatment in the sewage pond on the north side of the site, Party B shall not use the area or change the nature of the land without authorization, and the subsequent use shall be subject to Party A's opinions;
4) Charge availability service fee and garbage disposal service fee according to this contract;
5) At the expiration of the cooperation period, Party A shall recover the franchise right and the right to use the assets and facilities of the project free of charge, and Party B shall hand over the project facilities under normal operation to Party A or other designated institutions free of charge, intact, debt-free and without guarantee;
6) Exercise and enjoy other rights and interests stipulated in the contract.