Tianjin Capital ends Enshi sewage treatment project due to policy changes

Tianjin Capital Environmental Protection Group Company Limited has terminated the franchising project for the Enshi Dasha Dam Phase I and Phase II (Tanjia Dam) Sewage Treatment Plants and their supporting pipelines. This decision was made on November 14, 2025, following adjustments to policies pertaining to the new PPP mechanism. The company's board concluded that the termination would balance its investment and not negatively impact its operations or development.

The project, which saw the company and Wuhan Municipal awarded the contract on April 10, 2023, faced new regulatory challenges. The General Office of the State Council's "Guidelines on Regulating the Implementation of New Government and Social Capital Cooperation Mechanisms" (Guobanhan [2023] No. 115), issued on November 3, 2023, rendered provisions of the original JV agreement inconsistent. Additionally, the project falls under the scope of "Administrative Measures for Concession Operations in Infrastructure and Public Utilities" (2024 Order No. 17), adopted on January 31, 2024, as bidding and procurement were not completed before February 2023.

Following notification from the Enshi Municipal Government on February 4, 2024, to rectify according to the new guidelines, the Enshi Municipal Government submitted a rectification plan to terminate the project franchising. An agreement between the People's Government of Enshi City and Enshi Capital Water Co., Ltd. regarding the termination ensures that the total liquidation amount allows the project company to achieve a balance in its invested capital, including outstanding payables.