MIGA issued a guarantee of $7.1 million to Darco Environmental Pte. Ltd. of Singapore for its $7.95 million equity investment in Deqing Huanzhong Producing Water Co., Ltd. of China. The guarantee is for a period of 15 years and provides coverage against the risks of transfer restriction, expropriation, war and civil disturbance.
It consists of building a water treatment plant and supplying 60,000 cubic meters per day of potable water to the residents and the manufacturing plants in Deqing County, Zhejiang Province, China. It is a joint venture involving private investors and the Dequing County Water Co., which owns 27 percent of the project and will provide the necessary land, pipeline and water resources.
The project will create jobs, contribute to tax revenue and will pay dividends to the Deqing County Water Co. It also supports one of the priorities of the World Bank Group’s strategy in China, which is to encourage private sector participation in infrastructure, particularly in water services.