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
- Caofeidian Seawater Desalination Project
- Project ID
- Fiscal year
- Guarantee holder
Aqualyng Holding AS
- Investor country
- Host country
- Environmental category
- Date SPG disclosed
- April 19, 2010
- Project Board date
- June 02, 2010
- Gross exposure
- $7.5 million
- Project type
- ESRS - Aqualyng Caofeidian Seawater Desalination Project – China
- EIA - Constructional Project Environmental Impact Assessment Report - China
MIGA has issued a guarantee of $7.5 million to Aqualyng Holding AS of Norway, covering its $8.3 million equity investment (including dividends) in the Caofeidian Seawater Desalination project in China. The coverage is 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 50 percent 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 located in 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. Also, through this project, Aqualyng will help bring reverse osmosis seawater treatment technology to the industrial zone and $10.2 million of external investment.
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 the development of a recycling economy in the country.