On December 18, 2015, MIGA issued a guarantee of $9.9 million covering an investment by Aqualyng Global Pte., Ltd. in the Cangzhou Seawater Desalination Project in China. The guarantee is for a period of up to 15 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 Cangzhou Bohai Development Zone Aqualyng New Water Resources Co., Ltd. The plant is expected to provide up to 50,000 m³/day of fresh water (phase I) to the industrial zone. The project is scheduled for completion in 2017 after a two-year construction period.
The project’s major development impact is to provide fresh water in order to meet the urgent needs of the industries and businesses in the project area. Cangzhou Bohai Development Zone is one of China’s national economic and technological development zones. The zone is located in a dry area lacking fresh water. With the rapid industrial and economic development, the project area is facing a rising gap between water supply and demand. The water project is a top priority for the local government since it is key to meeting the current and long-term water demand in the Bohai Development Zone in Cangzhou City.
The project will also generate other development benefits such as the introduction of seawater treatment technology, promotion of foreign direct investment and public-private partnership projects, employment generation, and increased government tax revenues.