The Asian Development Bank (ADB) signed agreements with 10 commercial banks to support Dynagreen Environmental Protection Group (Dynagreen) in clean municipal waste-to-energy (WTE) projects with advanced technologies in small and medium-sized cities in the People’s Republic of China (PRC).
The US$100 million onshore local currency complementary loan agreement was also signed. This marks ADB’s inaugural onshore local currency complementary loan syndication in the PRC and is in addition to an A-loan of up to US$100 million equivalent in yuan financed from ADB’s ordinary capital. ADB acts as the lender of record through the local currency complementary loan structure. ADB is also providing a technical assistance grant of up to US$500,000 to enhance Dynagreen’s corporate governance system.
Diwakar Gupta, ADB’s Vice-President for Private Sector and Cofinancing Operations, said:
“The agreement signed today will improve solid waste management in PRC’s smaller cities, and also increase energy generation from renewable sources to help diversify the country’s energy mix.”
The financing package will help the development of WTE projects based on public-private partnership with smaller municipal governments, reducing greenhouse gas emissions, as well as soil and groundwater contamination.
Dynagreen, the environmental infrastructure arm of Beijing State-Owned Assets Management Company, will develop and operate WTE facilities under public-private partnership arrangements. The project includes the construction of at least nine technically efficient and environmentally sustainable WTE plants generating around 610 GWh of electricity a year by 2018 using clean technologies.
The local currency complementary loan syndication was arranged by Bank of Tokyo-Mitsubishi UFJ and oversubscribed with participation by 10 commercial banks including Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Cathay United Bank, CTBC Bank, Shanghai Pudong Development Bank, Fubon Bank, Hang Seng Bank, Shinhan Bank, Sumitomo Mitsui Trust Bank, and Korea Development Bank.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.