EcoPark in Tuen Mun, Hong Kong

Survey on Interest

Establishing Environmental and Recycling Businesses in the EcoPark Phase 2

Serco Guardian JV, EcoPark Management Office

SURVEY ON INTEREST IN

ESTABLISHING ENVIRONMENTAL AND RECYCLING

BUSINESSES IN THE ECOPARK PHASE 2

1. INSTRUCTIONS Purpose of the Survey 1.1 The Government of the Hong Kong Special Administrative Region (the Government), through the EcoPark Management Office, Serco Guardian JV (SGJV), invites market interest and feedback, on a non-committal basis, on establishing environmental and recycling businesses in the EcoPark Phase 2 in Tuen Mun, Hong Kong. 1.2 The purpose of the Survey is to allow the Government to seek market interest and obtain market feedback with a view to developing a more comprehensive understanding on:

(a) recyclers’ preferences such as the types of recyclable materials to be processed and recycling processes to be adopted in the EcoPark

(b) recyclers’ needs including tenancy arrangements, suitable lot sizes, utilities requirements, superstructure requirements, etc.

(c) the core and non-core management services to be provided by the Government or its agent; and

(d) recyclers’ expectations of the EcoPark. 1.3 This Survey is neither a tendering exercise nor a pre-qualification exercise to shortlist or pre-qualify any party. The ideas and suggestions received through the Survey will be used by the Government in fine tuning the infrastructure and service arrangements, and finalizing the tenancy arrangements and lots allocation methods for the EcoPark. Guidance for Submission 1.4 Companies (referred to subsequently as “participants”) should provide concise and relevant information in their submission by completing the enclosed Survey Form in either English or Chinese. Duly completed Survey Form and associated plans and drawings should be sent to the EcoPark management company, SGJV by e-mail (in Acrobat PDF format and not larger than 5 megabytes) to leasing@ecopark.com.hk (SGJV will acknowledge the document by e-mail); by fax (2496 7588); or by mail to SGJV, Administration Building, EcoPark, 133 Lung Mun Road, Tuen Mun, New Territories, Hong Kong.

2. THE ECOPARK DEVELOPMENT Introduction 2.1 In the document “A Policy Framework for the Management of Municipal Solid Waste 2005-2014” (the Policy Framework), the Government sets out a strategy on waste management that places emphasis on waste reduction and recovery. Hong Kong currently recycles 49% of its municipal solid waste (MSW), but around 99% of recovered recyclable materials are exported for further re-processing while only 1% are treated locally and re-manufactured into useful products. The EcoPark is a key element of the strategy that aims to promote the local recycling industry and jump-start a circular economy by providing long term land for the environmental and recycling industries. By encouraging and promoting the reuse, recovery and recycling of our waste resources and return them to the consumption loop, the EcoPark will help realize the full potential of the local recycling industry and alleviate the heavy reliance on the export of recyclable materials recovered from Hong Kong. Design and Construction 2.2 Located in Tuen Mun Area 38 and occupying 20 hectares of land, the EcoPark is developed in two phases. A location plan is attached at Figure 1. All six lots in EcoPark Phase 1 (with a rentable area of about 3.6 hectares) have been awarded for recycling of waste wood, waste cooking oil, computer equipment, waste plastics, waste metals and waste car batteries. The site formation and road works of Phase 2 has been substantially completed and the associated lots with a total rentable area of about 10 hectares will be available for leasing by the end of 2010. The EcoPark features the following basic physical infrastructure (see Figure 2):

(a) site formation, internal roads, drains and sewers; (b) water supply, power supply, fire service installations, and other utilities; (c) waste collection points; (d) marine loading/unloading areas; (e) a multi-functional Administration Building and other buildings/ ancillary facilities

for management and recycling operations; (f) green features, fencing and landscaping; and, (g) environmental monitoring and mitigation measures.

Operation and Management 2.3 As the primary objective of establishing the EcoPark is to enhance reduction, reuse and recycling of local waste materials, EcoPark should be used for processing and recycling locally recovered recyclable materials as far as possible. The Government has appointed an Operator (i.e. SGJV) to manage the EcoPark operation and maintain the infrastructure. The Operator is responsible for collecting fees and user charges (e.g. use of marine frontage) from the EcoPark tenants on behalf of the Government. The Operator, acting as the Government’s agent, has no

tenancy, lease or title in respect of the site and is not allowed to run any business in the EcoPark. The Government will enter into tenancy agreements with individual tenants, who would, at their own cost, build structures and install plant and machinery within their lots. EcoPark tenants are allowed to use the common facilities (subject to a user charge if needed and allocation system managed by the Operator) such as marine berths, weighbridge, meeting rooms and conference facilities. 2.4 To ensure proper control over the activities of tenants, operational requirements such as minimum throughput for designated materials, restriction on the use of imported recovered materials, and environmental and safety measures would be specified in the tenancy. Breaches of these requirements would lead to termination of the tenancy agreement. 2.5 The Government has completed an Environmental Impact Assessment (EIA) for the EcoPark. The EIA Report and its executive summary can be accessed from EPD’s website at http://www.epd.gov.hk/eia/register/report/eiareport/eia_1042005/index.htm. The materials and processes that have been examined and allowed in the EcoPark are summarized in Table 1. For processes not covered in the EIA, companies are required to satisfy the EPD that the proposed processes can comply with the requirements stipulated in the Environmental Permit before they would be considered. 2.6 Participants may wish to note the following information and operational requirements of the EcoPark:

(a) All six lots in EcoPark Phase 1 (with a rentable area of about 3.6 hectares) have been awarded for recycling of waste wood, waste cooking oil, computer equipment, waste plastics, waste metals and waste car batteries;

(b) EcoPark Phase 2 with a total rentable area of about 10 hectares is available for leasing at the end of 2010;

(c) The EcoPark site has been rezoned into “Other Specified Uses (Resource Recovery Park)” zone. By definition, Resource Recovery Park means any land with co-location of businesses (including the provision of goods and services) in reuse, recycling and composting, and related processing and manufacturing, with shared use of facilities. Resource recovery park includes businesses involving the use of recyclable materials from waste, clean technologies or renewable energy and provision of related products or services;

(d) There will be a marine frontage of 460 metres long (equivalent to about 8 berthing

spaces) for loading and unloading of materials (subject to a user charge); (e) Superstructure will be subject to the following height restrictions:

1. For factories with chimneys: overall height, including chimneys, should be not more than 30 metres.

2. For factories without chimneys: overall height should be not more than 35 metres.

(f) Utilities to be provided in each lot (utilities charges to be borne by tenants): 1. Sewage connection points; 2. Metered connection to fresh water mains supply; 3. Metered connection to saltwater mains supply; 4. Metered electricity supply – design maximum of 250kVA per typical lot of

5,000 square metres; and 5. Telecommunication connection ports for telephone, broadband internet, etc.

(g) Facilities to be shared among tenants (may be subject to user charges ) such as : 1. A product gallery, meeting rooms, resource centre, etc. in the Administration

Building; 2. Marine frontage and weighbridges; and 3. Waste collection point

(h) Possible optional non-core services to be provided by the Operator (fees to be paid by tenants) 1. Shuttle bus; 2. Catering service; 3. Joint purchasing and marketing; 4. Environmental and occupation health and safety training; 5. Consultancy services on licence/permit applications; and 6. Waste exchange programmes

(i) Adjacent development (for further details, see Figure 1) 1. West of the EcoPark site – Permanent Aviation Fuel Facility (PAFF) 2. East of the EcoPark site – Construction and demolition waste handling facility

TABLE I Materials and Processes Examined and Allowed under the EIA

Material Type Typical Recycling Processes

1 Batteries Mechanical / physical separation Shredding Neutralization (of electrolyte)

2 Electronics Separation and testing Shredding Electromagnetic and electrostatic sorting Manual dismantling

3 Glass Manual / automated sorting Crushing Melting Moulding, forming and finishing

4 Organic Food Waste In-vessel composting

5 Ferrous Metals Sorting and baling Shearing and shredding

6 Non-ferrous Metals Sorting and baling Shearing and shredding Melting Refining and alloying

7 Paper Sorting and baling Pulping Cleaning De-inking

Non-chlorine bleaching

Pressing and drying

8 Plastics Sorting, crushing and baling Flaking, shredding and cutting Blending Moulding and extrusion Plastic Wood Composite (PWC) Manufacturing

9 Textiles Sorting and baling

10 Rubber Tyres De-beading Shredding Crumbing

Processing Re-treading

11 Wood Dismantling and sorting Compaction Shearing Pallet refurbishment Chipping Non-chlorine bleaching Plastic Wood Composite (PWC) Manufacturing

12 Spent Copper Etchant Electrolysis

Further information on the EcoPark 2.7 Further details of the Survey and the EcoPark development can be found in EcoPark’s website at http://www.ecopark.com.hk. The following documents are also useful references:

(a) A Policy Framework for the Management of Municipal Solid Waste 2005-2014 http://www.epd.gov.hk/epd/msw/ (b) EIA Report of the EcoPark http://www.epd.gov.hk/eia/register/report/eiareport/eia_1042005/index.htm (c) Monitoring of Solid Waste in Hong Kong – Waste Statistics in 2009

https://www.wastereduction.gov.hk/en/materials/info/msw2009.pdf

2.8 For further information and enquiries, please contact SGJV by e-mail to leasing@ecopark.com.hk, by phone (2496 7633 (SGJV) or 2819 5502 (EPD)) or by fax (2496 7588). SGJV and EPD will, to the extent necessary and appropriate, reply to any enquiries of the participants regarding the Survey. Participants are strongly encouraged to go through the website before submitting enquiries to the SGJV/EPD. 3. CONFIDENTIALITY AND INFORMATION COLLECTION STATEMENT Confidentiality 3.1 Participants responding to this Survey may expressly reserve confidentiality over their personal information and corporate name and profiles provided in the Survey submission. The Government will not disclose such information for which confidentiality is reserved provided that the restrictions on disclosure shall not apply to disclosure:-

(a) to any person or persons as may be strictly necessary in connection with the Survey exercise;

(b) of information already in the public domain or known to the recipient otherwise than as a result of disclosure by the Government; or

(c) under compulsion of law.

Collection of Personal Data 3.2 The personal data provided in this Survey Form will be used by the EPD for one or more of the following purposes:

(a) activities relating to the processing of your submission in this Survey Form; (b) statistical and any other legitimate purposes; and (c) communications between the Government and yourself.

3.3 The personal data provided in this Survey Form may be disclosed to:

(a) other government bureaux and departments, and any other organisations for the purposes mentioned in paragraph 3.2 above, and

(b) other persons as permitted by the relevant legislation.

3.4 The participants have a right of access and correction with respect to personal data as provided for in section 18 and 22 and principle 6 of Schedule 1 of the Personal Data (Privacy) Ordinance. The right of access includes the right to obtain a copy of personal data provided by this Survey Form. 3.5 Enquiries concerning the personal data collected including the making of access and corrections, should be addressed to the Senior Environmental Protection Officer (Knowledge Management), 40/F Revenue Tower, 5 Gloucester Road, Wanchai, Hong Kong. Tel: 2594 6085. Fax: 2511 5420. Intellectual Property Rights 3.6 All works comprised in the Survey Form either shall be the original works of participants or shall not contain any materials infringing any third party intellectual property rights. Participants shall indemnify and keep the Government fully and effectively indemnified against all costs, claims, demands, expenses and liabilities of whatsoever nature arising from or incurred by reason of any such infringement or alleged infringement. 3.7 In submitting an Survey Form, a participant shall be deemed to have granted to the Government a freely transferable, royalty-free and irrevocable licence to use, adapt and modify the Survey Form and all ideas and proposals submitted and all intellectual property rights subsisting in the Survey Form (including the ideas and proposals) for all purposes in respect of or in connection with the development of the EcoPark. 3.8 The Government shall be entitled to disclose or make copies of any or all of the Survey Form for the purpose of considering or exploring the feasibility of or developing the Survey Form and development parameters of the EcoPark, and to keep such copies for record purpose. Disclaimer 3.9 The invitation is not intended to provide the basis of any investment decision and should not be considered as a recommendation by the Government or any of its officers, agents or advisors to any party to submit any Survey Form or proposals. Neither the invitation nor the Survey constitutes an offer nor does it constitute the basis of any contract which may be concluded in relation to the development of the EcoPark. 3.10 The invitation is not a prequalification exercise to shortlist or pre-qualify any party. The submission of any Survey Form by a participant shall be taken to be an acceptance of the terms of the invitation. Interested parties who do not submit an Survey Form will not be barred from taking part, or prejudiced against, in the subsequent competitive bidding for the lots within the EcoPark. 3.11 Each participant shall be solely responsible for the fees, costs and expenses incurred in preparing and submitting the Survey Form. The Government will under no circumstances be liable to any participant for any such fees, costs, expenses, loss or damage whatsoever arising out of or in

connection with the Survey. Participants are not to construe the contents of this Survey Form, or any other communication by or on behalf of the Government, or any of its officers, agents or advisors, as financial, legal, tax or other advice. 3.12 The Government reserves the right, without prior consultation or notice, to change the content of this Survey Form.

Figure 1: Location of the EcoPark in Tuen Mun

Construction and Demolition Waste Handling Facility

Figure 2: Site layout of the EcoPark

Marine Frontage

Phase 1 Phase 2

Administration Building and Visitor Centre

Urmston Channel

NGO’s[Waste

Plastics]

NGO’s[WEEE]

[Waste Metal]

[Waste Plastics]

[Waste Wood]

[Waste Cooking Oil] [WEEE]

[Waste CarBattery]

Leased lots

Empty Phase 2 lots available for leasing

[Blank Page]

Survey Form on Leasing of EcoPark Phase 2 Lots

Duly completed Survey Form and associated plans and drawings should be sent to the EcoPark management company, SGJV, by e-mail (in Acrobat PDF format and not larger than 5 megabytes) to leasing@ecopark.com.hk (SGJV will acknowledge the document by e-mail); by fax (2496 7588); or by mail to SGJV, Administration Building, EcoPark, 133 Lung Mun Road, Tuen Mun, New Territories, Hong Kong.

1 Particulars of Companies who are interested in bidding for EcoPark Phase 2 Lots

1.1

Company Name (English)

1.2

Company Name (Chinese)

1.3

Address

1.4

Tel. No Fax No

1.5

e-mail address

1.6

Contact Person Position

1.7

Company’s website http://

1.8

Local Company

Overseas Company

2 Experience in Material Recovery and Recycling

2.1

Main material types processed

Paper Plastics Ferrous metals Non-ferrous metals

Rubber tyres Wood Glass

Electrical & Electronic Appliances Textiles and old clothes

Others (Please specify)

2.2

Source of Waste

Local - Residential buildings

Local - Commercial & industrial buildings

Local - Construction sites

Others (Please specify)

2.3

Name of your existing/past recycling company

Is (was) this company based in Hong Kong?

Yes

No, please specify the location: _________________________

2.4

Briefly describe main recovery and/or recycling processes

2.5

Monthly throughput tonnes (per type of waste)

3 Proposed Operation in EcoPark

3.1

Main material types to be processed

Paper Plastics Ferrous metals Non-ferrous metals

Rubber tyres Wood Glass

Electrical & Electronic Appliances Textiles and old clothes

Others (Please specify)

3.2

Source of Waste

Local - Residential buildings

Local - Commercial & industrial buildings

Local - Construction sites

Others (please specify) .

3.3

Proposed arrangement for collection of waste materials

3.4

Proposed recovery / recycling processes (Please describe briefly the proposed processes with process flow diagrams, operational arrangement and ancillary facilities required, and indicate if there are any patented processes and/or thermal processes. Use separate sheets if required.)

3.5

Expected monthly throughput: tonnes

3.6

Outlets of processed materials

Local

Mainland China (already obtained import licence from Mainland China? Yes No )

Others (please specify)

3.7

Estimated environmental pollution caused by the processes

Air quality Wastewater discharge Solid waste Noise Visual Impact

Nil

Low

Medium

High

3.8

Proposed measures to minimize pollution (Use separate sheets if required)

3.9

Environmental licences required

Licences under Air Pollution Control Ordinance

Licences under Waste Disposal Ordinance

Licences under Water Pollution Control Ordinance

Other environmental licence (please specify)

3.10

Proposed number of jobs created in EcoPark

Management staff

Skilled workers

Non-skilled workers

Others

Total

______________persons

______________persons

______________persons

______________persons

______________persons

4 Requirements in EcoPark

4.1

Size and dimension of the lot preferred

5,000 sq. metres

10,000 sq. metres

15,000 sq. metres

Others sq. metres Length _______________________m Width _______________________m

4.2 Area allocated for: (m2)

Workshop

Office

Covered storage

Open storage Special structures (e.g. storage tank) Car park, loading area and other uses Others Total

4.3

Expected water and energy usage: (utilities charges payable by tenants):

Fresh water: about _________litres/month

Electricity: about _________ unit/month, power required: ____________kVA

Ultra low sulphur diesel oil: about ___________ litres/month

Other forms of energy (please specify)

4.4

Need to use the marine frontage facility (Note: subject to user charges )

Required, marine frontage with a length of ___________metres will be used about _____________ hours per week

Not required

Ingress/egress

Width

Length

4.5

Please attach a layout plan of your proposed development in EcoPark showing structures to be erected, location and dimension of plants, machinery, pollution mediation installations, loading area, etc.

4.6

Estimated time required from the date of site possession to commissioning and full operation (Please be reminded to allow time for submissions to respective government departments including Buildings Department and Fires Services Department) Site possession to commissioning ____________________ months Site possession to full operation _______________________ months

4.7

Level of Investment in EcoPark

HK$

Construction of factory

(including foundation and superstructures)

Machinery and equipment

Professional expenditure (such as Authorised Person and consultants

on fire services, environmental)

Others (Please specify)

Total investment

4.8

Funding arrangement

HK$

From shareholders

From banks/financial institutions

Other sources

4.9

Expected monthly rental (exclusive of Government rates, rent and any other outgoings) Monthly rental: HK$ , which is equivalent to HK$/m2/month

4.10

Preferred fixed term of tenancy ___________________ years

(Note: All Phase 1 lots have a fixed term of tenancy of 10 years)

5 Preferred Terms and Conditions

5.1

In EcoPark Phase 1, all lots were designated for specific waste types. Do you think it is required to increase the flexibility in waste materials in Phase 2 lots?

No, waste material types should be specified by the Environmental Protection Department (Same as Phase 1 lots), or

Yes, waste material types should be freely proposed by tenderers

5.2

Import of materials required

No required

Yes

Waste materials (Please specify _______________) Origin of imported waste materials: ____________________

Raw materials (Please specify _______________) Origin of imported raw materials: ____________________

Please elaborate briefly the reasons why imported materials are required (Use separate sheets if required)

5.3

Flexibility in lot size in tender

No, fixed lot size is preferred

Yes, in the multiple of 5,000 square metres

Other suggestions (please specify: ____________________)

5.4

Flexibility in tenancy period

Not required, a fixed term of ________ years is preferred

Yes, up to ________ years with exit clause at ________ years interval

Other suggestions (please specify: ____________________)

5.5

Other preferred terms and conditions

6 Preferred support from management company (Note: subject to user charges )

Shuttle bus service

Catering service

Advisory service on submissions to Buildings Department and application for licences

Other preference (please specify)

Date: _________________________