Business
Lifequest Closes Investment in Its First Design Build Own Operate Abattoir Wastewater Treatment Plant with a 20 Year Concession Period
Lifequest Closes Investment in Its First Design Build Own Operate Abattoir Wastewater Treatment Plant with a 20 Year Concession Period.
About this update from Lifequest World Corp.
[{"type":"text","content":"\n RIDGEFIELD PARK, NEW JERSEY, July 14, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – LIFEQUEST WORLD CORP (LQWC) is focused on innovative, scalable and disruptive decentralized wastewater treatment and reuse technologies. The Company has used its own capital to make this investment, which involves full recourse project debt and 70% ownership in the concessionaire. The 200m3/day plant will treat abattoir wastewater at a well-established beef producer. The Water-as-a-Service (WaaS) agreement is for 10 years with automatic renewal for 10 additional years. Under this Agreement the client will pay a service fee on every cubic meter of wastewater that is recycled with guaranteed minimums. The plant is expected to generate circa $3.5 million in free cash flow over the concession period and equity IRR of approximately 25%. The plant is expected to come online within the next 8-12 weeks. Mr. Max Khan, CEO, said, \"We previously announced our intent to focus on Build Own Operate strategy along with outright system sales, which has been severely impacted by Covid-19.  ESG focused commercial customers are increasingly embracing recycling of wastewater and at the same time looking to avoid capital investment and operational complexities. Water-as-a-Service agreements allow customers to concentrate on their core business and generate savings from reuse of water. Our goal is to have a portfolio of Build Own Operate plants in South Africa, Turkey, India and Bangladesh with long-term concessions. We also have the right of first refusal on a pipeline of projects at various stages of development. For competitive reasons, we are not disclosing the investment amount and the country where the plant will be located, but will be included in our next scheduled filing. This and future investments are expected to generate stable cash flow for our shareholders over a long period. We are working diligently to line up financing for future plants as well.” About Lifequest & Biopipe Lifequest offers effluent treatment plants (ETP), sewage treatment plants (STP), fat oil and grease (FOG) separator and hybrid media for water polishing. Biopipe, a wholly owned subsidiary, has developed a patented 100% sludge-free, chemical-free, odor-free, silent, easy to assemble and install, scalable, low cost, ecological and low maintenance-free onsite sew...