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Projects

Project Brief

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. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Deqing Darco Producing Water Co., Ltd
Project ID
5085
Fiscal year
2007
Status
Not Active
Guarantee holder
Darco Environmental Pte. Ltd.
Investor country
Singapore
Host country
China
Environmental category
A
Sector
Water and Wastewater
Gross exposure
 $7.5 million
Project type
Non-SIP

MIGA has issued a guarantee of US$7.56 million to Darco Environmental Pte. Ltd. of Singapore for its equity investment in the Deqing Darco Producing Water Company. The coverage is for a period of up to 20 years, against the risk of expropriation.

The project consists of the construction of a water treatment plant, on a build-operate-transfer (BOT) basis, that will supply 100,000 cubic meters per day of potable water to residents and industries in Deqing County. Raw water will be sourced from the Dui Hekou reservoir and piped to a water treatment facility, 20 kilometers away from the reservoir.

Deqing is one of the fastest developing counties in Zhejiang province with an estimated population of 430,000. Due to its rapid growth, the county has been facing a serious shortage of potable water as well as degradation in the water quality. The project will address the water supply shortage and is expected to contribute to local economic development, urbanization, and public health.

Managing resource scarcity and environmental challenges is one of the five themes of the World Bank Group’s Country Partnership Strategy for China. Construction of water supply and wastewater treatment plants is a key element of this theme. The investment will bring technological know-how to China’s water sector and, if successfully implemented, should have a positive demonstration effect on other water companies in China.

 
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