ADB, Banks Sign Loan for China Everbright International's Clean Waste-to-Energy Plants in the PRC

HONG KONG, CHINA – The Asian Development Bank (ADB) and China Everbright International Limited are partnering with six banks on a $100 million B loan facility to finance a series of  new waste-to-energy plants using a clean technology across the People’s Republic of China (PRC).

The B loan agreement was signed today. The B loan is being provided by Mizuho Corporate Bank, Ltd., Hang Seng Bank Limited, Bank of Kaohsiung, Cathay United Bank Company, Limited, Chang Hwa Commercial Bank, Ltd., and Export Development Canada. ADB is the lender of record.

The B loan is part of ADB’s financing package to the project, which also includes an ADB-provided loan, or an A loan, of $100 million and technical assistance of $600,000 from the Clean Energy Fund under ADB’s Clean Energy Financing Partnership Facility. Through the B loan structure, the participating banks share with ADB the benefit of ADB’s preferred creditor status.

“We are pleased to work with so many banks to support these clean waste-to-energy projects that, unlike most other waste-to-energy technologies, do not require coal supplements.  This will be a model municipal waste disposal project that can slash volumes by 90% and eliminate methane gas emissions from the treatment process,” said Hisaka Kimura, Principal Investment Specialist in ADB’s Private Sector Operations Department. “Private sector support – particularly at this uncertain time for the global economy – signals the importance and value of these kinds of projects.”

Dealing with municipal solid waste in the PRC is a huge challenge. The country is now the world’s largest producer of such waste with waste production rising at a rate of 8-10% a year. The PRC government is working to improve municipal waste management yet a significant amount is still dumped, untreated, into landfills. This contaminates the soil and groundwater and emits harmful methane gases. It also exposes the urban poor living nearby to severe air and water pollution as well as the threat of infectious diseases.

China Everbright International, listed on the Hong Kong stock exchange, will use the funds from the ADB-led financing package to build multiple plants of varying sizes in provincial capitals across the PRC.  China Everbright International’s core businesses are environmental protection and alternative energy. These include waste-to-energy, biomass power generation, solar photovoltaic energy, wind power, methane-to-energy, solid waste landfill, waste water treatment, reusable water, environmental protection engineering, technological research and development, environmental protection equipment manufacturing as well as planning and construction of environmental protection industrial parks.