Washington D.C., October 28, 2004
— The International Finance Corporation, the private sector financing arm of the World Bank Group, will provide a $1.2 million equity investment in WaterHealth International Inc. (WHI) to develop and market water purification/disinfection systems that will provide potable water to small communities, institutions, and households in Ghana and the Philippines. The funding will also help develop and implement the company’s entry into this market in India and Mexico.
The investment, the first of its kind by IFC, was made through its Environmental Opportunities Facility, whose role is to identify proven technologies that address local environmental problems in developing countries. The facility provides commercial credits and technical assistance to companies that can effectively deliver products and services to meet the market demand for clean water.
WHI, a privately held corporation based in Lake Forest, California, provides decentralized, scalable water purification systems that have low capital expenditures and operating costs. These systems are practical and affordable for a wide range of populations in emerging countries who need clean water. WHI systems can provide the rural poor with 10 liters a day per person of safe, high-quality drinking water – at an annual cost of less than $2 per person.
“The demand for distributed, decentralized water treatment systems is growing rapidly in the developing world, while few business models have emerged to serve this demand. We believe WHI is well-positioned to pursue this market based on a commercial model, thus helping address an environmental problem that has a direct public health benefit in the developing world,” said Jeff Liebert, the project’s investment officer at IFC.
Dr. Tralance Addy, president and CEO of WHI, said, “The global need for safe water is staggering, and we believe we are uniquely positioned to serve that need through a combination of our innovative technology and a business model that addresses needs in underserved areas. IFC’s investment funds are ear-marked for development and expansion of our operations in Ghana, India, Mexico, and the Philippines.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
