(Yicai) Oct. 9 -- Shares in Sanfeng Environment Group soared by as much as 4 percent today after the Chinese waste-to-energy firm said that a consortium comprising the company and China State Construction Engineering (Hong Kong) had bagged a HKD21.9 billion (USD2.8 billion) contract to design, build and operate Phase Two of Hong Kong’s Integrated Waste Management Facilities project.

Sanfeng’s share price [SHA:601827] closed up 1.7 percent at CNY8.04 (USD1.20). Earlier in the day it hit CNY8.22.

The consortium has penned a contract with the Hong Kong Environmental Protection Department for Phase Two of the Integrated Waste Management Facilities project, also known as I·PARK2, Chongqing-based Sanfeng said yesterday.

The project is designed to process 6,000 tons of household waste a day, the firm said. It adopts a New Engineering Contract 4 framework that uses a Design, Build and Operate model. The consortium will be responsible for the facility’s design, construction and operation. Construction is expected to take around four and a half years, followed by an operating period of 15 years.

As a landmark project supporting the Waste Blueprint for Hong Kong 2035‌ program, I.PARK2 will further improve the special administrative region’s solid waste management system, with a focus on waste reduction, recycling and safe disposal.

Securing the contract represents a significant milestone in Sanfeng’s international expansion, it said. The project is expected to have a positive impact on the company’s future business performance.

No further details were disclosed.

Founded in December 2009, Sanfeng specializes in the construction and operation of waste incineration power plants, environmental sanitation and protection consulting services, pollution control and the development of environmental protection technologies.

Editor: Kim Taylor