Tianjin Capital Environmental Protection Group Company Limited released a supplemental announcement on 13 July 2026, providing additional clarity on the pricing basis, contract amount determination and internal control measures tied to four engineering-procurement-construction (EPC) contracts previously disclosed on 25 June 2026.
The projects—reclaimed-water supporting works awarded via direct procurement to fellow group entity Expressway Construction—were approved under Tianjin Investment Group’s 2025 procurement rules, which allow direct awards when a qualified subsidiary can deliver the required municipal infrastructure and pipeline services.
Pricing framework • Independent verifier: Tianjin Municipal Investment Construction and Engineering Management Consulting Co., Ltd. (TMIC Consulting) prepared the tender control price. • Methodology: Costing followed the PRC National Standard GB50500-2013 and multiple Tianjin municipal budget base price catalogues for water supply, gas, municipal, installation and landscape works. • Market benchmarking: TMIC Consulting collected 37 quotations spanning PE pipes, valves, ductile iron pipes, fittings and instrumentation, adopting the average or median price of each product category as the benchmark. • Internal vetting: The tender control price was reviewed by Water Recycling Company’s procurement team, its department head and supervising leader, then approved by the Construction Management Professional Procurement Committee. Historical reclaimed-water project data from the past three years confirmed that the quoted price is in line with prevailing market levels. • Contract finalisation: Parties conducted item-by-item checks of the bill of quantities and held multiple arm’s-length negotiations before locking in the contract sums.
Internal control measures 1. Board Office oversight—ongoing monitoring of transaction values against approved annual caps, with escalation to the Board if thresholds are at risk of being breached. 2. Connected-transaction governance—contracts must pass through the Office of the Board under the company’s Connected Transaction Management System before signing. 3. Independent non-executive director review—continuous assessment to ensure fairness, normal commercial terms and shareholder interest alignment. 4. External audit—annual scrutiny of pricing policies and transaction caps by the company’s auditors.
The Board, including independent members, considers the pricing methodologies and internal controls sufficient to keep the EPC agreements on normal commercial terms and protect minority shareholder interests.