The Asian Development Bank (ADB) has signed a $200 million agreement with China Everbright International Limited to develop waste-to-energy plants in secondary cities across the People's Republic of China (PRC).
Hisaka Kimura, Investment Specialist in ADB’s Private Sector Operations Department (PSOD), said in a statement, "Waste-to-energy processing with clean technology is the most effective method of treating municipal solid waste since it slashes waste volumes by 90% and eliminates methane gas emissions from the waste treatment process."
The PRC has received a total of $21 billion in loans assistance since joining the Asian Development Bank (ADB) in 1986, making it the second largest ADB borrower and client for private sector financing.
China generates around 148 million tons per year of solid waste and growing at 8-10% annually, making it the world's largest producer of municipal solid waste.
Echoing similar sentiments, Joe Yamagata, Deputy Director General in ADB's PSOD, said, "To develop efficient waste-to-energy projects and achieve the target, municipal governments require fresh capital, advanced technology, and the management expertise of the private sector. This public-private partnership should serve as a model to spur more private investment in the industry in future."
ADB said in a statement that it will act as lender of record, “The project financing is in the form of a direct $100 million A-loan and a complementary B-loan of up to $100 million, funded by commercial lenders with ADB acting as 'lender of record'. The loans will have a maturity of up to 10 years with a three-year grace period.”
China Everbright International has grown into a solid and reputable conglomerate focusing primarily on the businesses of environmental protection, infrastructure and property investment. In late 2008, the company won a tender of Jinan Waste-to-energy Project; received three certificates, namely the ISO9001 Quality Management System Certificate, the ISO14001 Environmental Management System Certificate and the GB/T28001 Occupational Health Management System Certificate; obtained the "State New and Advanced Technology Enterprise Certificate"; and was granted the "2008 Outstanding Enterprises" by Economic Digest, among others.
The Clean Energy Program at ADB is multi-pronged. It seeks to increase regional energy efficiency in energy, transport and urban sectors; to adopt renewable energy sources; and to improve access to energy for the poor and remote regions - avoiding the use of traditional biomass.
Related LinksADB StatementChina Everbright International Limited
