Washington, D.C. / Beijing, China, October 23, 2007 —
IFC, a member of the World Bank Group, will invest in UE Envirotech Pte Ltd to advance medical waste treatment in China, helping improve environmental standards. Over the next four years, IFC’s $12.5 million investment will help the pioneering company build and operate new medical waste treatment plants throughout the country, in partnership with municipal governments. The company will manage 32 plants by 2010, reaching more than 120 million people.
Environmental protection and the proper handling and treatment of medical waste have drawn increasing public attention as a result of China’s rapid urbanization. UE Envirotech’s efforts are expected to have substantial public health benefits, including reducing the risks associated with air-transmitted diseases and the mishandling of medical waste.
IFC’s investment will include a $9 million loan and $3.5 million in equity. The total cost of the project is about $50 million. UE Envirotech is operating six medical waste treatment plants in Anshan, Dandong, and Fuxin in Liaoning Province; Liaocheng in Shandong Province; and Xinxiang and Jiazuo in Henan Province. It also has contracts with five other municipal governments to build and operate plants in Chenzhou and Shaoyang in Hunan Proncince; Jiamusi in Hei Long Jiang Province; Jian in Jiangxi Province, and Xianxi in Hunan Province. These 11 facilities will serve more than 44 million people.
UE Envirotech partners with municipal governments, usually in a build-operate-transfer arrangement, whereby the city grants exclusive rights to its medical waste, while the company provides the infrastructure and operating resources to service the city and surrounding area. The contracts are usually for 20 to 30 years, with extension options. UE Envirotech’s current contracts cover the treatment of medical waste from public hospitals with more than 100,000 beds. The company also leverages the resources of its Singapore-based parent firm, United Engineers Ltd, which has a track record of providing facility management services to over 150 hospitals and health care facilities across Asia.
Ryan Sun, CEO of UE Envirotech Pte Ltd, said, “IFC’s participation in our company is a strong endorsement of our management expertise, business strategy, and corporate governance. We are confident that this partnership will enhance our contribution to improving China’s environment.”
Guy Ellena, IFC Director for Health and Education, said, “Medical waste poses a serious threat to the environment and public health in China. The project will help expand waste treatment services in a socially and environmentally responsible way, demonstrating IFC’s commitment to social sector development in the country.”
Richard Ranken, IFC Director for East Asia and the Pacific, added, “This project will have direct and immediate benefits for people living in the area, reducing their risk of diseases and improving the environment. UE Envirotech is also demonstrating that higher standards for treating medical waste can be achieved in an environmentally and commercially sound manner, including in regions that have not attracted such investments previously.”
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
.
About UE Envirotech Pte Ltd
UE Envirotech Pte Ltd is a pioneering provider of medical waste treatment services in China, formed in 2004 to improve environmental standards in Asia. With cutting-edge technology and stringent procedures, it offers reliable and environmentally safe solutions to communities. The company is a subsidiary of United Engineers Limited, a Singapore-based publicly listed firm that was established in 1912. For more information, visit
www.ue-enviro.com
.
