(Yicai Global) Aug. 23 -- China Tianying will invest in a domestic waste incineration power generation project in the Vietnamese capital of Hanoi through a local unit to turn waste into treasure and improve local environmental quality.

The affiliate, Hanoi Thien Y Environmental Energy, recently signed a service project agreement with the Hanoi authorities, the environmental protection constructor and operator based in Jiangsu province in eastern China said in an announcement yesterday.

The unit will receive and treat domestic waste collected and transported by Hanoi from surrounding counties under a 49-year franchise, under the agreement. It will process at least 4,000 tons of domestic solid waste every day and generate electricity of up to 75 megawatts. The unit price of waste disposal is provisionally set at USD21 (tax excluded), the announcement explained.

The supply price of electricity generated by the project is about USD0.10/kilowatt hour, the announcement stated. Investment in the waste incineration power plant will total about USD3.2 million and the plant will be completed and go into operation within 21 months from the project's start, the announcement added.

The subsidiary is a joint venture funded by Europe Tianying, a wholly-owned affiliate of China Tianying, a Hanoi renewable energy development company, and an investment company. Its registered capital is about USD64 million, of which Europe Tianying holds a 66-percent stake, China Tianying said.

The project will support the firm's performance over the coming years and promote the solid waste disposal business in Vietnam and other overseas markets, per the announcement.

Editor: Ben Armour