The Asian Development Bank (ADB) has signed a financing package of up to $100.5 million with China’s Dynagreen Environmental Protection Group (Dynagreen), and 10 commercial banks to support Dynagreen’s clean Waste-to-Energy (WTE) projects.
All groups signed the agreement on Tuesday (February 28) in addition to an A-loan of up to $100 million equivalent in yuan financed from ADB’s ordinary capital. ADB is also providing a technical assistance grant of up to $500,000 to enhance Dynagreen’s corporate governance system.
The event marked ADB’s inaugural onshore local currency complementary loan syndication in China.
The financing package will help the development of Dynagreen’s WTE projects based on public-private partnership (PPP) with smaller municipal governments, reducing greenhouse gas emissions, as well as soil and ground water contamination.
The project includes the construction of at least nine WTE plants generating around 610 gigawatt-hours of electricity a year by 2018 using clean technologies.
“The agreement signed today 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,” said Diwakar Gupta, ADB’s vice-president for private Sector and cofinancing operations.
The local currency complementary loan syndication was arranged by Bank of Tokyo-Mitsubishi UFJ and oversubscribed with participation by 10 commercial banks including Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Cathay United Bank, CTBC Bank, Shanghai Pudong Development Bank, Fubon Bank, Hang Seng Bank, Shinhan Bank, Sumitomo Mitsui Trust Bank, and Korea Development Bank.