Washington, Aug 3, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, will make a $20 million preferred equity investment in SinoSpring Utility Ltd and a $25 million loan to Tianjin Dagang NewSpring Co., Ltd, a wholly owned subsidiary of SinoSpring.
SinoSpring was set up to develop build-own-transfer or build-own-operate projects in water treatment, including seawater and wastewater, in China. Its shareholders are Hyflux Ltd and RB (Labuan) Ltd. Through its subsidiaries, SinoSpring is currently executing eight water projects in China.
IFC’s preferred equity investment will help finance SinoSpring’s projects in China. IFC’s loan will finance Dagang NewSpring, a seawater desalination plant in Dagang district, to supply the Tianjin municipality, which suffers from acute water shortages. Seawater desalination is a competitive option for Tianjin as an alternative source of water. Once completed, Dagang NewSpring will be China’s largest desalination plant, expanding the city’s water resources and providing water to industrial users.
Olivia Lum, Hyflux’s CEO and President, said, “Hyflux welcomes this partnership with IFC. The financing brings to fruition our strategy to finance and develop our China projects through SinoSpring.”
Francisco Tourreilles, IFC’s Director for Infrastructure, commented, “IFC is very pleased to support Hyflux’s expansion in water treatment and desalination in China, an area that is critical to the country’s economic development and environmental sustainability. We look forward to a long-term partnership with Hyflux in China and beyond.”
Dick Ranken, IFC’s Director for East Asia and the Pacific, added, “This investment in China’s water supply and wastewater sectors demonstrates IFC’s ongoing strategy of support for private sector participation in China’s infrastructure development. The SinoSpring projects will help alleviate China's water shortages and pollution problems.”
About IFC
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
