ADB arranges $288m loan for wastewater treatment projects in China

The Asian Development Bank has arranged a $288m loan for Beijing Enterprises Water Group to promote wastewater treatment and reuse in China.

The B-loan has been arranged from 13 banks with ADB acting as the lender of record for commercial banks.

Beijing Enterprises Water Group will upgrade and operate wastewater treatment plants in China in compliance with grade 1A standard for wastewater.

After being treated as per the strictest standards, the treated wastewater can be used to meet industry and urban environment needs in the country, including for machine cooling, boiler operation and cleaning at construction sites.

The B-loan arrangement is the largest to date by the ADB and is part of the bank’s financing for the project. The bank had financed another loan of $120m in November 2013, and with the latest deal, the loan amount has risen to $408m.

ADB east Asia private sector infrastructure finance head Hisaka Kimura said: “A prime objective of the B-loan is to perpetuate our development mission with partner banks to promote reuse of treated wastewater as a strategic option for sustainable water management.

“We are pleased to work with 13 leading banks to address the PRC’s water challenge.”

The 13 banks include Australia and New Zealand Banking Group, the Bank of Tokyo-Mitsubishi UFJ, BPI Capital, Industrial and Commercial Bank of China (Asia), Rabobank International and OCBC Wing Hang Bank.

Other banks include Kookmin Bank, Aozora Asia Pacific Finance, State Bank of India, Chang Hwa Commercial Bank, KEB Asia Finance, Shinhan Asia and Taiwan Cooperative Bank.