The Asian Development Bank (ADB) has signed agreements with 10 banks to support the Dynagreen Environmental Protection Group’s clean municipal waste-to-energy (WTE) projects in Chinese cities.
For the projects, $100m onshore local currency complementary loan agreement has been signed.
The WTE projects featuring advanced technologies are to be built in small and medium-sized cities.
A minimum of nine plants with a total annual capacity of about 610GWh of power using clean technologies will be constructed as part of the WTE projects.
The new fund from ADB is its maiden onshore local currency complementary loan syndication in China to go along with an A-loan of up to $100m financed from its ordinary capital.
ADB private sector and cofinancing operations vice-president Diwakar Gupta said: “The agreement signed 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 Manila-based bank played the role of lender of record through the structure of the local currency complementary loan.
It will also offer a technical assistance grant of up to $500,000 to improve the corporate governance system of Dynagreen.
The funding to WTE will help it develop its projects co-owned by public and private entities with smaller municipal governments. Objectives of the WTE projects are to decrease greenhouse gas emissions and also to keep a check on soil and groundwater contamination.
Bank of Tokyo-Mitsubishi UFJ had arranged the local currency complementary loan syndication. It was oversubscribed by 10 commercial banks such as Bank of Tokyo-Mitsubishi UFJ, Cathay United Bank, BNP Paribas, CTBC Bank, Fubon Bank, Shanghai Pudong Development Bank, Shinhan Bank, Korea Development Bank, Hang Seng Bank and Sumitomo Mitsui Trust Bank.
Image: ADB launched the inaugural local currency complementary loan for Waste-to-Energy PPP's in PRC. Photo: courtesy of Asian Development Bank.