|Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.|
This summary covers an investment by Aqualyng Holding AS in the Caofeidian Seawater Desalination project in China. The investor has applied for a MIGA guarantee of $15.3 million to cover its equity investment and future dividends (estimated to total $17 million), through its subsidiary Aqualyng China Limited, for a period of up to 20 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project consists of the construction and operation of a seawater desalination plant in Hebei Province of China by Tangshan City Aqualyng Caofeidian Seawater Desalination Co., Ltd, a joint venture company of Aqualyng China Limited (a Hong Kong registered company and wholly owned by Aqualyng Holding AS of Norway) and Tangshan Caofeidian Infrastructure Construction Investment Co., Ltd. The seawater desalination plant will be built in the Caofeidian Industrial Zone and is expected to provide water supply of 50,000 m³/day to the industrial zone.
The project is a Category B under MIGA’s environmental review procedures. Click here to view the Environmental and Social Review Summary.
The proposed project is aligned with MIGA’s strategy of promoting investment in infrastructure projects.
The project is located in the Caofeidian Industrial Zone, a dry area in northern China with limited fresh water. As a result of rapid industrial and economic development, water consumption in the area has been increasing, and water supply has become a significant challenge for the local government. The Caofeidian seawater treatment plant is expected to supply water of 50,000 m³/day to industries and residents in the industrial zone and to contribute to the local government’s objective of developing a recycling economy.
The project will also generate about 40 jobs, provide training, and contribute to government revenues. This is MIGA’s first seawater treatment project in China, the successful implementation of this project should have a positive demonstration effect on other seawater projects in the country.