IFC to lend $70m for Everbright Chinese water project
International Finance Corporation (IFC), the investment arm of the World Bank, will lend $70 million to China Everbright International to build three water plants in China.
Hong Kong-listed Everbright, which operates and invests in environmentally friendly businesses, will build a wastewater treatment plant, a wastewater re-use plant and a ground water plant. When finished, the first plant can treat 150,000 cubic meters of wastewater every day, while the second plant can recycle 20,000 cubic meters of water a day.
The project will help further develop China's water sector, which faces severe shortages due to the country's fast-growing economy, large population, and rapid urbanization. Over the years, the government has tried to reduce water pollution and improve water efficiency.
"IFC's financing and global network in the water industry will help us better integrate our businesses across the supply chain," said Chen Xiaoping, CEO of Everbright. "With IFC's help, we will adopt global best practices that are important for making our company more international."
Everbright operates around 24 water-related projects, 22 waste-to-energy plants, six hazardous solid waste landfill projects, and 18 alternative energy projects in China. IFC has so far financed four water projects in China; two on wastewater treatment, one on water supply, and the other on seawater desalination.
"This investment will support the establishment of state-of-the-art water facilities, help make the China's water sector more efficient, and promote global best practices, "said IFC Executive Vice President and CEO Jin-Yong Cai.
Recent activity in this space includes Baring Private Equity Asia's $95 million investment in Chongqing Kangda Environment Industry, a sewage treatment services provider, last June; and a $10 million round of funding for Scinor Water, which produces membranes used in waste water treatmenmt, led by CLSA Capital Partners in February this year.
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